On June 20, Shenzhen Stock Exchange (hereinafter as “SZSE”) held a fund listing ceremony for Fullgoal 1000 and Orient Securities Innovation Selected, officially initiating the work on signing the new version of the Fund Listing Agreement. Chairman of Fullgoal Fund Management Co., Ltd., General Manager of Orient Securities Asset Management Company Limited, and other senior executives, as well as relevant persons in charge of SZSE attended the event.
Previously, SZSE has started signing the new Security Listing Agreements and new Corporate Bond Listing Agreements smoothly. The new Fund Listing Agreements entered into between SZSE and managers of the listed funds is an important measure taken by SZSE to meet the requirements in the newly revised Measures on Administration of Securities Exchanges, address the weak links in its systems, consolidate the regulatory basis, honor the spirit of the contract, and strengthen the law-based comprehensive and strict regulation.
The new Fund Listing Agreement is an optimization of its previous one, with a series of adjustments and improvement made, which could be summarized as follows.
First, enriching the self-regulatory means of the stock exchange. The new agreement provides for on-site inspections on fund managers and the specific means and measures for conducting the inspections. It is also stipulated that the stock exchange may charge default penalties if a fund manager violates the agreement or rules.
Second, enhancing the basis for regulation of information disclosure. It is specified that a fund manager should be trustworthy and operate in a proper manner, and that he or she should duly disclose relevant information and perform other obligations, ensuring that the information disclosed is truthful, accurate, complete, timely and fair.
Third, showing the spirit of the agreement and emphasizing the self-regulatory attribute of the stock exchange. It is specified that the stock exchange shall provide facilities, consulting and training services and other convenience for fund subscription, listing and trading, purchase and redemption, suspension and resumption and information disclosure. Besides, the dispute resolution provisions were also revised. The new Fund Listing Agreement allows a fund manager to file a claim to a competent court or an arbitration tribunal for dispute resolution.
Fourth, providing for an internal remedy mechanism and improving the justice and transparency of self-regulation. The new Fund Listing Agreement provides that an internal relief system for self-regulation be set up by SZSE to safeguard the fund managers’ rights to apply for hearing and review of major self-regulatory decisions of SZSE.
As pointed out by an officer from SZSE, next, the stock exchange shall, under the unified arrangement of China Securities Regulatory Commission, carefully implement the requirements in the Measures on Administration of Securities Exchanges, make better use of the capital market platform, and step up communication and cooperation with all market players. Furthermore, based on the strengths and features of the underlying market of SZSE, it shall improve the product system with continuous efforts, build the SZSE fund market into an innovative one-stop global asset allocation and wealth management platform, balance the development of stock, bond, fund and derivative markets, push forward the development of an cutting-edge innovation-driven market system, and build a world-leading innovation capital formation center.
