SZSE recently completed the acceptance of applications from enterprises under review for refinancing under the registration-based IPO system of the ChiNext Board, and conducted review according to the review stages and time of acceptance of the applications at China Securities Regulatory Commission (CSRC). On July 10, SZSE sent the first letters of inquiry on refinancing review under the registration-based IPO system of the ChiNext Board, to 19 enterprises under review. Of the 19 enterprises, four applied for securities issuance to unspecific investors and 15 for securities issuance to targeted investors.
The first letters of inquiry on refinancing review have reflected, in both content and form, SZSE’s adherence to the review philosophy of the registration-based IPO system that takes information disclosure as the core, investor demand as the orientation, differentiated regulation as the means and service-based regulation as the goal. Questions are further streamlined, but review quality and inquiry pertinence remain intact, allowing investors to make better value judgment independently and supporting listed companies using financing instruments of the capital market to achieve high-quality development. First, empowering the review through day-to-day regulation. Based on practices of continuous regulation and the quality of routine information disclosure by listed companies, SZSE improved the quality and efficiency of review by category, and in the letter of inquiry on refinancing review, it no longer inquired about issued that were already clearly explained or solved in the letter of inquiry on annual report. Second, empowering the review through targeted inquiry. Centering on issuing conditions, listing conditions and information disclosure requirements, SZSE made targeted inquiries and improved inquiry accuracy. In the letters of inquiry, SZSE clearly distinguished issues that need to be disclosed from issues that need to be explained, and stated that matters that need to be explained should be content of replies to inquiries and are thus not required to be disclosed in the prospectus, reducing redundant information and making it easy for investors to read and make investment decisions. Third, empowering the review through technological means. Through the intelligent regulatory system on enterprise portraits, SZSE promoted the application of risk warning indicators in refinancing review. Through the letters of inquiry, it urged listed companies to fully warn investors about potential risks and truthfully show their fundamentals in their prospectuses.
It requires the concerted efforts of all market participants to steadily advance the refinancing review under the registration-based IPO system. Listed companies shall earnestly fulfill information disclosure obligations, and intermediaries shall fully perform the duties as the “gatekeeper”, clearly explaining core content and key issues strictly according to relevant rules and requirements such as format criteria and review Q&As, so as to further improve the quality of information disclosure of application documents, help reduce rounds of review inquiry rounds and increase review efficiency and jointly build a good review ecosystem under the registration-based IPO system.
Next, SZSE will always uphold the principles of “openness, fairness and justice”, continue to improve the quality and efficiency of refinancing review with an open mind, transparent standard, a clean style of work and strict disciplines, and actively give play to the refinancing role. It will support listed companies on the ChiNext Board in using capital market platforms to grow better and stronger, improve the cycle mechanisms of innovation capital and real economy, continue to enhance the sense of gain of existing companies from the reform, and facilitate steady implementation of the reform of the ChiNext Board and the pilot project of the registration-based IPO system.
