Today, with the approval of the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange (hereinafter referred to as the SSE) revised and released the Interim Regulation on Application and Recommendation for Issuance and Listing of Enterprises on SSE STAR Market (hereinafter referred to as the Interim Regulation). Relevant officials of the SSE answered reporters' questions about the main background, content and implementation of revising the Interim Regulation.
I. Please introduce the main background and purpose of revising the Interim Regulation.
A: The CSRC has revised and released the Guidelines for the Evaluation of Science and Technology Innovation Attributes (for Trial Implementation) (hereinafter referred to as the Guidelines). On the basis of the original evaluation criteria of sci-tech innovation attributes, it clarifies the exemption of business income indicators for eligible overseas listed red-chip enterprises, and optimizes the expression of invention patent indicators and circumstances of sci-tech innovation attributes. This revision of the Interim Regulation by the SSE is made under the guidance of the CSRC in accordance with the revision spirit and requirements of the Guidelines, aiming to promote the matching and convergence of rules, strengthen the positioning of the STAR Market and advance the building of it.
The establishment of the STAR Market is a major reform initiative to implement the national strategies of innovation-driven development and sci-tech powerhouse, promote high-quality economic development and build a modern economic system. The report to the 20th CPC National Congress calls for adhering to the core position of innovation in the overall situation of China's modernization, strengthening the national sci-tech strategic strength, and optimizing the allocation of innovation resources, which puts forward new and higher requirements for the capital market to serve sci-tech self-reliance and self-strengthening at higher levels. This requires continuous reform and innovation to bring into play the advantages of the capital market, better serve the innovation needs of different types of enterprises at different stages of development, and guide optimal resources to further gather in the fields of sci-tech innovation.
This revision of the Interim Regulation is a clarification and strengthening of the requirements for the application and recommendation on the STAR Market based on previous reform experience. This is expected to strengthen the alignment of listing standards and board positioning rules, maintain the consistency of legislative logic, implement the responsibilities of issuers and intermediaries, and strengthen comprehensive research and review in accordance with the evaluation principle of "substance over form" for sci-tech innovation attributes, so as to further grasp the positioning of the STAR Market.
II. Please outline the implementation of the Interim Regulation in the early stage and major revisions this time.
A: Since the revision of the Interim Regulation in April 2021, the SSE has focused on the core objective of supporting "key and core technologies" and further clarified the evaluation indicators and application & recommendation requirements for sci-tech innovation attributes. With the concerted efforts of all market participants, we have basically formed a consensus on the understanding and grasp of the attributes of sci-tech innovation, and the STAR Market has generally developed in a healthy and orderly manner.
Based on the original rules, this revision has made further optimizations in combination with the market development and review practice, which mainly involve 3 aspects:
Firstly, it adds the provision that eligible overseas-listed red chip enterprises are exempted from applying business income indicators of sci-tech innovation attributes. According to the revised Guidelines, it has been made clear that overseas-listed red chip enterprises applying to the STAR Market in accordance with relevant rules, such as Opinions on Launch of Pilot Program for Domestic Issuance of Shares or Depositary Receipts by Innovative Enterprises, can refer to those applying to the STAR Market according to the fifth listing standards and be exempted from applying indicators related to business income, which establishes rules for the application of sci-tech innovation indicators for overseas listed red-chip pilot enterprises that intend to enter the STAR Market.
Secondly, it revises the expression of invention patent indicators and circumstances of sci-tech innovation attributes. According to the revised Guidelines, the expression of "more than 5 invention patents that have generated main business income", an invention patent indicator of sci-tech innovation attributes, has been changed to "more than 5 invention patents that have been applied to the company's main business". The expression of "more than 50 invention patents (including national defense patents) that have formed core technology and related to main business income", the exception of invention patents, has been changed to "more than 50 invention patents (including national defense patents) that have formed core technology and been applied to main business", so that relevant requirements for invention patents can be more accurately applied to enterprises with no revenue.
Thirdly, it refines and improves the specific requirements for issuers' special descriptions and sponsor institutions' special opinions in the annexes. Based on the practical experience of reviewing sci-tech innovation attributes, according to the need of "substance over form" judgment, from the dimensions of meeting the support direction of the STAR Market, meeting the requirements of sci-tech innovation industries and meeting the indicators or circumstances related to sci-tech innovation attributes, the requirements for self-assessment of whether the issuer meets the STAR Market's positioning and the sponsor institutions' special verification opinions are refined and specified.
III. In light of the revision of the Interim Regulation, how will the SSE further promote the high-quality development of the STAR Market?
A: Under the leadership of CSRC, the SSE will strive to make the STAR Market a special board to support "key and core technologies". With the successful listing of key and core technology enterprises in a number of "bottleneck" areas on the board, the breakthroughs in self-supporting and import substitution in key areas have achieved, the STAR Market enterprises have gradually achieved full coverage of six major industries, highlighting the demonstration effect of industrial agglomeration and support for sci-tech innovation.
This revision of the Interim Regulation further clarifies the specific requirements for issuers to self-assess whether they are in line with the positioning of the STAR Market and the verification by the sponsor institutions. The sponsor institutions should focus on the direction of national strategic development, foster and recommend high-quality enterprises to be listed on the STAR Market. They should further verify whether issuers meet the requirements of the STAR Market's positioning, make professional judgments in terms of the STAR Market direction, the requirements of sci-tech innovation industries and the indicators or circumstances related to sci-tech innovation attributes, and fully and objectively reflect the verification basis in the filing documents. The SSE will stick to the positioning of the STAR Market, insist on opening the door to conduct reviews, and form a synergy with all parties in the market to promote and guide capital market funds to invest in sci-tech innovation sectors that are primarily supported by the country.
Going forward, under the leadership of the CSRC, the SSE will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, carry forward the spirit of the 20th CPC National Congress and the Central Economic Work Conference, develop a modern capital market with Chinese characteristics, earnestly implement the national strategy of innovation-driven development, further strengthen the system and mechanism building of the STAR Market to support sci-tech innovation, facilitate the listing of "key and core technology" enterprises, promote the high standard circulation of science and technology, capital and real economy, support the sci-tech self-reliance and self-strengthening at higher levels, improve the quality of listed companies from the source, and constantly promote the high-quality development of the STAR Market.
