On July 10, the ChiNext Board Stock Issuance Regulation Committee of the SZSE Board of Directors (“the Issuance Regulation Committee”) held the second working conference of 2020, which briefed recent work progress, analyzed and judged situations that issuance and underwriting business may face and countermeasures, and studied and discussed targeted measures for jointly promoting a steady start of issuance and underwriting on the ChiNext Board under the registration-based IPO system. Through panel discussion, all members reached a consensus and launched the initiative on further guaranteeing standard issuance on the ChiNext Board.
Since the founding of the Issuance Regulation Committee, members have earnestly fulfilled their responsibilities. According to the guiding principles of the first working conference and based on the realities of the industry, they have actively offered advice and suggestions on the steady implementation of the reform of the ChiNext Board and the pilot project of the registration-based IPO system. The initiative has put forward targeted measures such as prudently carrying out strategic placement, refining the quotation formation mechanism and facilitating and simplifying business operation, aiming to effectively give play to the synergy of strategic investors, introduce medium- and long-term incremental capital, promote reasonable pricing of new stocks, and achieve standard, transparent, steady, orderly issuance and underwriting under the registration-based IPO system of the ChiNext Board.
Members at the meeting said that the initiative, which was formed after they extensively sought advice from market participants, meets the requirements of the reform of the pilot project of the registration-based IPO system and conforms to the realities of the ChiNext Board. They said that they would fully support and resolutely implement the initiative and set a good example, and they would work with all ChiNext Board issuers, sponsors, underwriters, buyers and other relevant participants to enhance the awareness of responsibility, norm and risk and carry out or participate in IPO issuance and underwriting business of the ChiNext Board in a rational, orderly manner. Relevant measures proposed in the initiative are part of the phased arrangements in the early days of the pilot project of the registration-based IPO system of the ChiNext Board and will be adjusted by the Issuance Regulation Committee based on the market situation.
The Issuance Regulation Committee, as the platform for negotiation and communication between IPO issuers and buyers, guides the market to form stable and reasonable expectations by giving play to the self-regulation role of the industry and regulating stock issuance and underwriting behaviors on the ChiNext Board. SZSE fully respects and supports the initiative launched by the Issuance Regulation Committee and will actively pay attention to the compliance of issuers, sponsors and underwriters to the initiative. In the meantime, SZSE will conscientiously implement CSRC’s requirements of “Four Respects” (respecting the market, rule of law, profession and risks) and “One Resultant Force” (seeking support from all sectors of society), adhere to “an open mind, transparency, honesty and strict disciplines”, work with relevant entities to jointly build a good ecosystem in the capital market, guide more element resources to innovation and startups, facilitate the formation of a fair, reasonable and efficient issuance pricing mechanism, and promote a steady, good start of the reform of the ChiNext Board and the pilot project of the registration-based IPO system.
Appendix:Initiative on Further Guaranteeing Standard Issuance on the ChiNext Board.pdf
