Notice on Regulatory Arrangements for Fully Supporting Prevention and Control of Novel Coronavirus Pneumonia
SSE Letter [2020] No. 202 Document
All market participants:
In order to resolutely implement the spirit of General Secretary Xi Jinping’s important instructions and the decisions and deployments made by the Party Central Committee and the State Council, energetically advance the implementation of the “Notice on Further Strengthening Financial Support for Preventing and Controlling the Novel Coronavirus Pneumonia” (PBC [2020] No. 29 Document) issued by five ministries and commissions such as the People ’s Bank of China and the requirements of the China Securities Regulatory Commission (CSRC) for the efforts in this regard, and spare no efforts in prevention and control of the epidemic, the Shanghai Stock Exchange (SSE) has made adjustments and coordination arrangements for relevant business during the special period of epidemic prevention and control, improved the self regulation and services to provide special service channels and improve convenience in online business, and reduced the operating costs for market institutions in key regions, so as to ensure the stable and orderly functioning of all businesses and protect the health, safety and legitimate rights and interests of investors. The relevant matters are hereby notified as follows.
I. Review for Issuance and Listing on the SSE STAR Market
1. During the period of epidemic prevention and control, the SSE will still normally accept the applications for initial public offerings and major asset reorganizations of listed companies and other related applications submitted by the issuers through the SSE review business system for the SSE STAR Market.
2. Starting on February 3, in the IPO review, the review for major asset reorganizations of listed companies and other related reviews on the SSE STAR Market, regarding the review time limits stipulated by the rules such as the time limit for issuers’ replies, as well as the time limit for the issuers to update their financial reports, the counting of time will be terminated; Resumption of the counting will be notified in due time according to the situations in epidemic prevention and control.
3. During the period of project review, on-site communication and consultation by appointment will not be accepted for the time being. The project-involved personnel of the sponsoring institutions can raise questions online through the review business system of the SSE or contact the reviewers by phone, and the SSE’s reviewers for the SSE STAR Market will respond in a timely manner.
II. Stock Underwriting and Listing Services
1. In order to support issuers and lead underwriters in making effective efforts in epidemic prevention and control as well as issuance and underwriting, the SSE has set up special service channels for the IPO information disclosure, relevant business arrangements, and other matters related to the epidemic prevention and control, so as to deal with communication and consultation from the issuers and the lead underwriters at any time.
2. If the issuer and the underwriter find it difficult to carry out the issuance and underwriting in accordance with the previously released announcements on issuance and underwriting, adjustments may be made according to actual needs and relevant rules, and the adjusted arrangements shall be disclosed in a timely manner. The submission of the IPO application documents on the electronic business system has been implemented, and there is no need to submit paper documents.
3. Issuers and lead underwriters are encouraged to conduct online roadshows via the Internet and telephone. The SSE Roadshow Center will provide the remote port access service for online roadshows. Where there is indeed a need for an on-site roadshow, the local requirements for epidemic prevention and control and relevant regulations of the local securities industry associations should be strictly observed. In principle, one-to-many on-site roadshows shall not be conducted,
4. The 2020 annual listing fee for the listed companies registered in Hubei Province will be waived. The initial listing fee and the 2020 annual listing fee for the newly listed companies registered in Hubei Province will be waived.
5. During the period of epidemic prevention and control, the SSE will not arrange on-site listing ceremony and the listing agreement between the SSE and the issuer will be signed by mail. The issuers may hold the listing ceremony at the exchange after the impact of the epidemic is eliminated.
6. Efforts will be made in market cultivation through online consultation, remote video, online training and other means, and the SSE will provide convenient, professional and targeted market services in a proactive way. We will step up the support in market cultivation services for the areas with relatively severe epidemic situations, such as Hubei Province, and effectively bolster the listing by actively working with local governments and companies to be listed.
III. Information Disclosure of Listed Companies
1. The SSE has set up a special service channel for information disclosure of listed companies, accepting consultations on the information disclosure of the listed companies related to epidemic prevention and control, and supporting the listed companies in their epidemic prevention and control and related information disclosure at present. The listed companies may directly contact the SSE’s company regulatory departments for business consulting or handling the information disclosure.
2. If a listed company finds it difficult to disclose its 2019 annual report on the originally scheduled date due to the impact of the epidemic situation, it may apply to the SSE’s regulatory departments for an extension of disclosure until April 30, 2020 in accordance with the rules. If a listed company finds it difficult to disclose its 2019 annual report or its report of the first quarter of 2020 within the statutory disclosure period (April 30, 2020) under the impact of the epidemic, it may contact the SSE’s regulatory departments to report the relevant circumstances; according to the unified deployment of the CSRC, the SSE will determine relevant response arrangements after deliberation.
3. If, due to the impact of the epidemic, a listed company finds it difficult to disclose its performance estimate by the end of January 2020 or a company listed on the SSE STAR Market has difficulty in disclosing its preliminary performance estimate by the end of February 2020, they can apply to the SSE’s company regulatory departments for an extension.
4. If, due to the impact of the epidemic, a listed company is indeed unable to update its financial information or issue a notice on a shareholders' meeting in the process of planning a merger, acquisition or reorganization, it may, after fully disclosing the specific impact of the epidemic on the current reorganization, apply for an extension of one month, three times at the most, for the validity period of its financial information or the time of the notice on the shareholders' meeting.
5. The listed companies are required to make efforts in information disclosure according to laws and regulations and rules, and disclose the information needed for investors’ decision-making in an authentic, accurate, complete, timely and fair manner. If, due to the impact of the epidemic situation, the major events of the listed companies such as the production and operation that meet the information disclosure criteria shall be disclosed in a timely manner in accordance with the relevant provisions of the SSE’s rules for stock listing on the main board and the SSE STAR Market, so as to protect the investor s’ right to know in accordance with the law.
6. The SSE will support the listed companies to promote the participation of the shareholders in shareholders' meetings through online voting. If a listed company registered in Hubei Province provides online voting for its shareholders to exercise their voting rights through the SSE’s online voting system, the SSE will waive the service fee for the time being.
7. The SSE will support the listed companies to hold briefings on annual reports and performance. The SSE provides roadshow services for listed companies, and supports the listed companies in using the SSE Roadshow Center and other Internet platforms to hold online briefings on annual performance, so as to brief on the company's annual operation, communicate with the investors and enhances the investors’ confidence.
8. The listed companies are encouraged to actively fulfill their social responsibilities. The listed companies shall actively fulfill their social responsibilities and take effective measures to shore up the epidemic prevention and control on the basis of their actual production and operation conditions. The disclosure of the information related to social responsibilities of the listed companies will be used as an important evaluation indicator for annual information disclosure assessment.
IV. Services for Bonds (Including Asset-backed Securities) Businesses
1. The SSE supports the issuers and the intermediaries such as the lead underwriters in handling the businesses such as review, issuance and listing, and information disclosure online, and in submitting the bond issuance applications and other materials through the SSE's electronic business system, Internet, fax, mail and other means. The written materials that need to be submitted on-site originally can be sent in the form of electronic files first, and the paper materials can be provided after the epidemic prevention and control is completed.
2. If, due to the impact of the epidemic, the issuer and the intermediary cannot submit the materials such as the application for issuance within the existing time limit, they can apply to the SSE according to the rules for taking the measures such as the suspension of the counting for the time limit. If the regular reports or the interim reports cannot be disclosed within the specified time limit, the application for temporarily postponing the disclosure can be submitted according to the rules.
3. According to the arrangements made by the Ministry of Finance, Hubei Province and other provinces (autonomous regions and municipalities) with relatively severe epidemic situations, the SSE will effectively provide business and technical support and services for the issuance of the general bonds and special bonds of local governments. If the companies or funds registered in Hubei Province and other provinces (autonomous regions and municipalities) severely affected by the epidemic raise funds for the purposes of epidemic prevention and control, the SSE will establish a green channel of issuance, so as to effectively provide financing services for the area.
4. The SSE will appropriately relax the time limit for handling the issuance of the bonds and asset-backed securities. If the non-publicly offered corporate bonds and asset-backed securities have had the issuance approval documents issued, but due to the impact of the epidemic, the issuance has not been completed within the validity period stipulated in the document, the issuer may apply to the SSE for postponing the issuance.
5. If, due to the impact of the epidemic situation, the participants in the bond market meet with special circumstances in the issuance application, issuance, information disclosure, trading and settlement and other businesses related to the bonds and asset-backed securities, they can communicate with the SSE’s bond business center in a timely manner.
V. Optimizing and Adjusting On-site Business Modes
1. Priority is given to the mailing in the business of agreed transfer of shares in listed companies. The contact phone number, e-mail address, and mailing address for business handling and feedback shall be specified in the application materials. For qualified applications, the SSE will send relevant notices to the applicants through email and other means, and issue and mail the document of confirmation opinion to the applicants. The applicants may submit an application for transfer to the Shanghai Branch of China Securities Depository and Clearing Co., Ltd. by mail.
2. Where the judicial, supervisory and other competent authorities (hereinafter collectively referred to as the enquiry authorities) require the SSE to assist in enquiries, priority is given to handling by mail. The SSE will verify the originals of relevant documents of the enquiry authority’s operator through video connection and other means, and give priority to mailing through confidential channels or the means specified by the enquiry authority in returning the results of the assisted inquiry.
3. Hearings and reviews for disciplinary action will be postponed as appropriate or held in off-site forms such as by video or by telephone; the parties may submit applications and other materials related to hearings and reviews for the disciplinary actions to the SSE through mail, email, the electronic business system for listed companies and other means.
VI. Market Participants Management and Service
1 Security firm members, fund managers, and options operating agencies shall, in accordance with the "Notice on Further Strengthening Financial Support for Prevention and Control of the Novel Coronavirus Pneumonia” (PBC [2020] No. 29 Document) issued by five ministries and commissions, the "Notice on Making Effective Efforts in Prevention and Control of the Novel Coronavirus Pneumonia" (CSRC [2020] No. 9 Document) issued by the CSRC and other requirements, earnestly improve the service modes, keep the businesses stable, and promote the rational investment.
2. Based on the unified deployment of the CSRC, the SSE will provide special policy support in the businesses of stock pledge financing and margin trading and securities lending for Hubei Province and other regions in severe epidemic situation; the SSE will set up a special channel for business consultation to reply to members' inquiries about the businesses of stock pledge financing and securities borrowing and lending.
3. The SSE supports members, fund managers and option operating agencies in formulating targeted and practical business emergency plans, implementing the mutual standby mechanism for key positions, and making arrangements for replacement of relevant personnel in special circumstances, so as to ensure the smooth operation of all businesses.
4. The SSE supports members and option operating agencies in making effective efforts in investor education and service for investors through various means, encouraging the investors to carry out the trading activities in off-site modes, and providing efficient technical guarantee and related services for off-site trading. If it is really necessary to provide on-site trading services, the local requirements for epidemic prevention and control shall be met so as to ensure the health protection.
5. The SSE supports option market makers and fund liquidity service providers in vigorously offering market making and liquidity services so as to maintain the normal trading order. If it is really impossible to provide market-making business and liquidity services due to the impact of the epidemic, the relevant institutions may apply to the SSE for exemption from the market-making obligations and liquidity service rating and assessment within a period of time according to the actual situations.
6. The SSE’s training for market participants such as listed companies, members, fund managers, option operators and investors will be conducted through off-site means such as online videos. The affairs of development of relevant products and regular management will be handled online in principle.
7. The SSE supports members, fund managers, and option operators in actively guiding the investors in analyzing the impact of the epidemic rationally and objectively, and carrying out investment activities in accordance with laws, regulations and rules on the basis of the concepts of long-term investment and value investment; the SSE will carry out investor education and promotion of trading modes through off-site means such as online video, and properly respond to the investors’ questions.
8. In order to meet the requirements for epidemic prevention and control and ensure the health and safety of investors, the SSE will temporarily close the facilities for receiving the investors' visits. The investors can use the service hotline, WeChat public account, e-mail and other off-site means to raise questions and make demands to the SSE. The SSE will pay close attention to and deal with the investors’ demands in a timely manner.
The SSE calls on the investors to protect their own health during the epidemic prevention and control, encourages them to exercise the shareholder’s rights, access relevant information and participate in securities trading through off-site means such as by Internet and by telephone, and urges them to rationally look at the impact of the epidemic and invest prudently.
Attachment: Contact Information on Service Channels for Businesses of Shanghai Stock Exchange
Shanghai Stock Exchange
February 2, 2020