Shenzhen Stock Exchange: Trial Implementation Of Standing Supervisor System On SME Board And ChiNext Board

In recent days, Shenzhen Stock Exchange issued the Circular on the Trial Implementation of Standing Supervisor System in Certain Sponsors, stating that the trial implementation of the standing supervisor system will be launched on January 1, 2012 in 11 sponsors to supervise the IPO companies. This is another important measure taken by the Exchange to enhance the continuous supervision works of the sponsors on the SME board and ChiNext board.

It is reported that the standing supervisor system is developed based on the existing continuous supervision system, and according to which dedicated supervisor will be appointed to help the sponsors perform continuous supervision on the IPO companies. However, the continuous supervision on refinancing is not included in this trial implementation.

According to the Circular, the participating sponsors need to appoint 1 standing supervisor for each IPO company to help the sponsor representative carry out continuous supervision works, including onsite inspection, special verification, organization training etc. However, the assistance of the standing supervisor will not relieve or exempt the obligations of the sponsor representative for the continuous supervision.

According to the relevant principal of the Exchange, 11 sponsors that are actively engaged in continuous supervision and have high practice quality will be selected for the trial implementation, and other sponsors are encouraged to voluntarily implement this system. Before the official implementation of the standing supervisor system, the Exchange will provide special trainings to the standing supervisors, including the training relating to the information disclosure and compliant operation of the listed companies and the continuous supervision tasks.

The principal also expressed that the Exchange would summarize the experiences from the trial implementation in good time to improve and comprehensively promote the system. It will further explore new methods and new systems to improve the continuous supervision quality, so as to ensure the proper fulfillment of the sponsor’s duties and the normalized development of the listed companies, and realize the healthy and stable development of the multi-level capital market.