Shanghai And Shenzhen Stock Exchanges Have Successively Issued Supporting Rules For Listing On The Stock Exchange, Breaking Through The Last Link Of System Construction

In order to smoothly promote the implementation of the system of listed companies listed on the new third board to the gem, on July 23, the Shanghai and Shenzhen stock exchanges successively issued the supporting business rules for the listing on the second board, which clearly stipulated the information disclosure principles, main contents and formats of the report on listing on the second board, and the requirements of the application documents for listing on the second board, In order to enter the implementation phase of listing on the transfer board, we should further clarify the practical operation path and do a good job in system connection.

"The issuance of the supporting rules for listing on the Shanghai and Shenzhen stock exchanges marks the completion of all the rules on listing on the stock exchange within the system of the CSRC, and officially sounded the charge for the listing of the selected layers on the transfer board." Zhou Yunnan, founder of Beijing Nanshan investment, said.

The Shenzhen Stock Exchange also pointed out that with the release of supporting rules for listing on the new third board, the preparation work of Shenzhen Stock Exchange on the selected layer of the new third board is basically ready.

The preparation work of the selected layer rotary plate is basically ready

"Nearly two weeks have been waiting for the implementation of the detailed rules (supporting business rules for listing on the board). With the approach of" 727 ", it is necessary to start to lay out the investment in the concept stocks of the transfer board." Some senior investors in Beijing's new third board said that the supporting business rules for listing on the transfer board were "calling for thousands of calls".

On July 27, 2020, the first batch of 32 new third board enterprises promoted to the selected level will be listed for one year. According to the current rules, the above-mentioned 32 enterprises will have the basic conditions for listing on the science and technology innovation board or gem. However, with the "727" day approaching, the detailed rules and standards on the listing of the selected enterprises on the new third board have not been clear, and the practical work of the transfer board has not been started. This time, the supporting business rules of the listing on the transfer board made up for the lack of relevant rules and opened up the "last kilometer" of enterprises' listing on the board.

From the supporting business rules of listing on the stock exchange of Shanghai and Shenzhen Stock Exchange, it is necessary to ensure the consistency of information disclosure principles based on the first listing rules of selected layer listed enterprises in the future.

The Shanghai and Shenzhen Stock Exchange said that in view of the differences between the gem and the new third board in terms of investor composition, audit standards and regulatory requirements, and from the perspective of information disclosure integrity and maintaining the continuity of rules, the information disclosure requirements for the gem listing are generally consistent with the gem IPO. The guidelines for the report and application documents for listing on the gem shall be adjusted adaptively based on the content and format of the IPO prospectus and the requirements of the IPO application documents.

In addition, the listing on the board will also be guided by the demand of investors and highlight the principle of significance and effectiveness of information disclosure. Based on the practice of initial information disclosure, the exchange will optimize some information disclosure requirements according to the guidelines in the report on listing on the board of exchange, and further highlight the principles of materiality, effectiveness and pertinence.

Specifically, the new regulations streamline and optimize the overview section, adjust the information of intermediaries and their personnel to "annex", and no longer require the disclosure of other enterprise information controlled by shareholders with more than 5% shareholding and actual controller in the chapter of "basic information of transfer board company", delete the listing and covering disclosure of independent events, and highlight the disclosure of independence defects and rectification, Delete the list of specific accounting policies.

Considering that the selected companies have been listed on the new third board for more than a year, the supporting business rules for the listing on the second board also simplify the guidelines for the report on the listing on the second board and the contents that have been publicly disclosed in the new third board market. For example, the company's historical evolution, compliance information disclosure and listing application document requirements have been streamlined, and the burden of market entities has been effectively reduced. At the same time, combined with the characteristics of the listing on the board, we should increase the disclosure of the standardized operation of the listed companies.

"For China's multi-level capital market, the selective layer to board listing has smoothed the effective connection of the multi-level capital market, better realized the interconnection, complementary advantages and dislocation development between the multi-level capital markets, made the multi-level capital market truly an organic whole, and enhanced the ability of the capital market to serve the real economy." As for the improvement of the system, Zhou Yunnan said.

It is conducive to the active secondary market of the new third board

On the evening of November 27, 2020, Shanghai and Shenzhen stock exchanges successively solicited opinions on the measures for listing companies listed in the national small and medium-sized enterprise stock transfer system to the gem (for Trial Implementation) (hereinafter referred to as the measures for listing on the GEM), which opened the prelude to the construction of the system of listing on the new third board.

Just a week before the Shanghai and Shenzhen Stock Exchange issued the supporting business rules for the listing on the stock exchange, China securities registration and Clearing Corporation also issued the detailed rules for the implementation of cross market re registration of securities listed on the National SME stock transfer system.

"At that time, we began to wait for the Shanghai and Shenzhen Stock Exchange to issue an article, and the" 727 "was approaching. A wave of quotations should have broken out in the select layer market, but the detailed rules have not appeared yet. Some of them have hit the market confidence." There is investment in the new third board market of private funds said.

Zhou Yunnan also said that the path design of the selection layer and the selective layer directly transferring to the board has a strong attraction for many IPO companies, and will also bring a lot of money making opportunities and wealth effects to the secondary market of the new third board, which is conducive to the activity of the listing market, financing market and trading market of the new third board.

"For the selected layer plate, the listing on the transfer board is like a valuation connector between the A-share market and the selected layer. The valuation level of the same industry of A-share can be used as the magnet of the concept stocks of the selected layer, so that the low absorption is high and the high absorption is low." Zhou Yunnan said that due to the large liquidity premium and valuation premium in the secondary market of the three plates of the selection layer, the science and technology innovation board and the growth enterprise market, the good expectation of listing on the transfer board will directly drive the liquidity of the selected layer to improve continuously to a large extent, and also completely open the imagination ceiling of the selection layer on the valuation P / E ratio.

"At present, as for which other enterprises take the lead in declaring their position to be listed on the stock exchange board, it is expected that the enterprises that will take the lead in publishing annual reports will make their positions first." The person in charge of the above-mentioned private equity funds pointed out that although the actual transfer cases may need to wait until the fourth quarter, the market situation brought about by the preliminary board transfer is still worth looking forward to.

In fact, since this year's select layer market has been due to the board is expected to be in a "restless.". According to the statistics of Anxin securities, as of June 30, 2021, according to the return rate after listing of selected enterprises (excluding the first day of listing), 76% of the rising enterprises accounted for 76%. In terms of market conditions since this year, the proportion of rising enterprises has increased to 85.19%.

However, Zhu Haibin, chief analyst of Anxin securities's new third board, pointed out that a small number of enterprises still fell in the general rising market, and the stock prices of selected level listed companies showed obvious polarization. Therefore, in the current general rising market near the selective floor transfer board, it is still necessary to pay attention to the basic situation of enterprises, and restate the stock selection logic of "relying on meeting the conditions for board transfer, looking at valuation in the short term and looking at growth in the long term", It is suggested that investors should pay attention to the enterprises that are in line with the characteristics of "specialization and innovation".

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