China Securities Journal｜SSE Encourages VC Institutions to Guide Invested Companies to Access the Capital Market in Diverse Ways

Translated from China Securities Journal

On the evening of July 10, a reporter of China Securities Journal learned from the Shanghai Stock Exchange (SSE) that the SSE recently held a symposium for venture capital (VC) institutions on the "STAR Market Eight Measures". Representatives from 9 VC institutions, including China Fortune-Tech Capital, Shanghai STVC Group, China Reform Fund, and Cowin Capital, attended the meeting.

During the symposium, the participants exchanged views on specific issues encountered in their business operations, such as cultivating a "patient capital" ecosystem, merger and acquisition (M&A) and reorganization, and the "fundraising-investment-management-exit" cycle.

For example, Fortune Capital and Cowin Capital proposed to further stabilize IPO expectations and improve the relevant mechanisms for VC institutions to enter and exit, so that the VC industry can have more patience to accompany the growth of enterprises and better foster an investment environment that invests emerging small enterprises with core technology.

CICC Capital pointed out that the motivations for M&A and reorganization are diverse, the transactions are complex, and the uncertainty is high. It recommended that regulatory authorities adopt a more comprehensive and inclusive review approach.

Institutions such as Shenzhen Capital Group, China Fortune-Tech Capital, and Cowin Capital proposed that various relevant departments should further strengthen policy coordination and form synergy in areas including industrial policy, state-owned asset evaluation, accounting standards, and error tolerance mechanisms, in order to jointly promote the cultivation and growth of "patient capital".

The relevant responsible person of the SSE responded to the policy issues concerned by the VC institutions and stated that the SSE is continuously optimizing the "Three Open-Doors (open-door review, open-door regulation, and open-door service)" working mechanism, and for major matters such as IPO, refinancing, and M&A and reorganization, communication and consultation can be carried out according to the regulations to better clarify market expectations and improve market efficiency.

The relevant responsible person emphasized that the capital market is an ecosystem and VC institutions are an important part of it. The optimization of the market ecology cannot be achieved without the joint efforts of all market participants. The implementation of the "STAR Market Eight Measures" requires the strong support and cooperation of VC institutions. It is hoped that VC institutions will remain steadfast and persistent in supporting the growth of high-quality enterprises that master core technology, overcome bottlenecks, and achieve import substitution and guiding the invested companies to reasonably choose IPO, M&A, and other diverse ways to access the capital market.

The above information is provided for reference purposes only and does not constitute investment advice.