Since the opening of the SSE STAR Market, with the coordination and guidance of the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange (SSE) has stepped up the provision of various supporting systems. Following the public solicitation of opinions on the supporting business rules for major asset restructuring on the SSE STAR Market, the SSE has recently sought comments on the supporting business rules for the refinancing on the SSE STAR Market.
The public solicitation of opinions involves two sets of business rules. The first is the “Rules of Shanghai Stock Exchange for Issuance and Listing Review of Securities of Companies Listed on SSE STAR Market (Draft)”, which stipulates the contents, requirements and procedures for review of refinancing, the simplified review procedures for small-amount non-public issuance, and the self-regulation of refinancing violations for the companies listed on the SSE STAR Market. The second is the “Detailed Implementation Rules of Shanghai Stock Exchange for Issuance and Underwriting of Securities of Companies Listed on SSE STAR Market (Draft)”, which provides for the main institutional arrangements for the right issue and additional issuance of the companies listed on the SSE STAR Market, and the corresponding issuance and underwriting business procedures and regulatory requirements in the determination mechanism for different types of issuance targets in the non-public issuance.
The public solicitation of opinions on the two sets of rules, which are formulated on the basis of the basic principles and institutional framework established by the CSRC in the "Administrative Measures for Issuance and Registration of Securities of Companies Listed on SSE STAR Market (for Trial Implementation) (Draft for Comment)", aims to make specific stipulations on the issuance and listing review and the issuance underwriting business for the refinancing on the SSE STAR Market. In order to reach the goal of making refinancing on SSE STAR Market easier set in the “Implementation Opinions on Launching SSE STAR Market and Piloting Registration-based IPO System on Shanghai Stock Exchange”, the systems related to the refinancing of the companies listed on the SSE STAR Market are designed on the basis of the information-disclosure-centered concept for the registration-based IPO system of the SSE STAR Market, oriented toward the market and rule of law. Based on the characteristics of the refinancing activities carried out by the listed companies, the systems make relevant improvements, including optimizing the review procedures for non-public issuance of the companies listed on the SSE STAR Market, significantly shortening the review period, setting up the simplified review process for small-amount non-public issuance, and establishing the corresponding business procedures for the refinancing issuance and underwriting, etc. In addition, the relevant rules have further tightened the information disclosure obligation of the listed companies and the inspection duties of the intermediaries, and intensified the self-regulatory measures.
The deadline for the solicitation of opinions is December 8, 2019. The SSE will fully and thoroughly solicit the opinions of all market participants through various means, modify and improve the supporting rules for refinancing of the listed companies on the SSE STAR Market, and officially release the systems to the market after completing relevant decision-making and approval procedures.Notice on Publicly Soliciting Opinions on “Rules of Shanghai Stock Exchange for Issuance and Listing Review of Securities of Companies Listed on SSE STAR Market (Draft)”