Shanghai Securities News｜SSE Hosts "STAR Market Eight Measures" Training & M&A Symposium for Enhanced Case Implementations

(Shanghai Securities News) (Reporter Qi Doudou) On July 4, the Shanghai Stock Exchange (SSE) held a specialized training session for securities companies on the "STAR Market Eight Measures". The session was attended by 100 heads of investment banking and research institute business lines from 25 securities companies. This training aimed to build industry consensus through communication and advocacy, further guide securities companies to enhance their professional service capabilities and practice quality, jointly implement the "STAR Market Eight Measures", promote the deepening and solidification of the registration system, and better serve tech innovation and the development of new quality productive forces.

This training focused on the background and main content of the "STAR Market Eight Measures" policy. It provided an in-depth analysis of the new requirements for developing new quality productive forces and the emerging trends in promoting the deepening and implementation of the stock issuance registration system. The session also introduced the reform and development of the STAR Market over the past five years, highlighting the characteristics and milestones of STAR Market-listed companies. Additionally, it detailed 35 initiatives in eight areas: the STAR Market's "hard tech" positioning, issuance and underwriting, equity and bond financing, M&A, equity incentives, transactions and products, comprehensive supervision, and market ecosystem.

Representatives of securities companies attending the meeting expressed that the "STAR Market Eight Measures" training provided them with a new understanding of the significant role of the STAR Market in advancing capital market reform. It offered a fresh perspective on the valuation logic of STAR Market-listed companies and generated new expectations for the forthcoming reforms facilitated by the STAR Market.

Several securities company representatives believe that the introduction of the "STAR Market Eight Measures" has reinforced the STAR Market's positioning as a "hard tech" hub. It has improved institutional inclusiveness, emphasized prioritizing support for "hard tech" enterprises that have achieved breakthroughs in key and core technologies within new industries, formats, and technologies to be listed on the STAR Market. It also clarifies ongoing support for high-quality but unprofitable companies to list on the STAR Market and serve as targets for mergers and acquisitions, all of which contribute to more accurate and efficient service to the new quality productive forces landscape.

Representatives from securities companies further stated that the "STAR Market Eight Measures" provide detailed elaboration on relevant systems under the framework of the State Council's guidelines on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market and the capital market's "1+N" rule system, thereby bridging the "last mile" of system implementation. The eight reform measures proposed in the "STAR Market Eight Measures" not only actively address market concerns and signal the capital market's commitment to reform but also accumulate experience and create conditions for further comprehensive capital market reforms. This is of great significance for effectively leveraging the functions of the capital market and better serving the overall objective of China's modernization. At the same time, participating companies deeply felt that intermediaries, as the "gatekeepers" of the capital market, should use their professional capabilities to foster a virtuous cycle of "technology-industry-finance." They should fully utilize their professional advantages and work together to advance scientific and tech finance.

To further implement the measures related to "Greater Support for M&A" in the "STAR Market Eight Measures", SSE held a symposium with investment banking leaders from several securities companies after the training, focusing on promoting high-quality industrial M&A within the STAR Market.

Representatives of securities firms attending the meeting believed that relevant contents about M&A and reorganization were a highlight of the "STAR Market Eight Measures". Supporting STAR Market-listed companies in undertaking industrial M&A would help tech innovation enterprises grow stronger and improve in quality. At the same time, they hoped for the early implementation of innovative systems such as installment payment of share consideration for M&A. They also provided opinions and suggestions on supporting mergers through acquisition under different control, optimizing cross-border M&A policies, and further enhancing audit efficiency.

A relevant official from SSE indicated that they will consistently implement the "Three Opens (open-door review, open-door regulation, and open-door services)" concept, enhance communication and coordination with all market participants, and expedite the implementation of more exemplary M&A cases. They will strive to fully and effectively implement the "STAR Market Eight Measures", unleash institutional benefits, and stimulate market vitality.