Beijing Stock Exchange Solicits Public Opinions On Listing Rules, Trading Rules And Member Management Rules

In order to implement the spirit of General Secretary Xi Jinping's important instructions on "deepening the reform of the new third board and establishing the Beijing stock exchange" and the relevant decision-making and deployment of the CPC Central Committee and the State Council, under the guidance of the China Securities Regulatory Commission, the Beijing stock exchange (hereinafter referred to as the "Beijing stock exchange") has drafted the relevant business rules for the self-discipline supervision of the Beijing stock exchange, Since September 5, 2021, public opinions will be solicited from the market.

The first three basic business rules for public consultation are the Listing Rules of Beijing stock exchange (Trial) (hereinafter referred to as the Listing Rules), the trading rules of Beijing stock exchange (Trial) (hereinafter referred to as the trading rules), and the membership management rules of Beijing stock exchange (Trial) (hereinafter referred to as the member management rules). These three rules are the basic rules for the stock exchange to perform its legal duties. According to the basic rules stipulated in the securities law, the basic institutional framework of company supervision, securities trading and member management is constructed.

The above three business rules adhere to the principles of marketization and legalization. They not only follow the general rules of the system construction of the stock exchange, but also fully consider the market positioning of the Beijing stock exchange to serve innovative small and medium-sized enterprises. The main contents are as follows:

The first is to build a company supervision system that matches the market positioning and legal nature. On the one hand, the listing rules are in line with the current major regulatory arrangements of Listed Companies in terms of corporate governance, information disclosure, suspension and resumption management, and maintain the overall consistency of regulatory standards of various stock exchanges; In line with the recommendation supervision of the stock exchange, the Beijing stock exchange no longer implements the continuous supervision system of the sponsor securities companies, focuses on the key subjects and key minority, compacts the main responsibilities of the sponsor institutions and listed companies, and enhances the endogenous power to improve the quality of the company. On the other hand, the Listing Rules implement more flexible and flexible regulatory requirements in terms of cash dividends and equity incentives, form distinctive differentiated institutional arrangements, and respect the operating characteristics and development laws of innovative small and medium-sized enterprises.

The second is to continue the mature trading system which has been tested by practice. Since the opening of the selected layer, the market operation has been relatively stable, the quality of the secondary market has been significantly improved, the enterprise value has been further explored, the investment wealth effect has begun to appear, and the trading system effect has been in line with expectations《 The "trading rules" as a whole continues the trading system with continuous bidding as the core of the selection layer, and other major provisions, such as the limit of rise and fall, remain unchanged. They do not change the trading habits of investors, increase the market burden, reflect the characteristics of small and medium-sized enterprise stock trading, and ensure the stability and continuity of market trading. At the same time, the system space is reserved for the introduction of market making mechanism and the implementation of mixed trading.

The third is to explore the member management system which is compatible with the company system exchange. Members are the qualification carrier for securities companies to carry out business in the Beijing stock exchange. The implementation of member management is to implement the clear requirements of the upper law for the stock exchange. There are many mature practices in domestic and overseas corporate trading《 Member management rules are used for reference, focusing on the requirements of transaction risk control, customer management, transaction information use and technical system management of members, strengthening the supervision mechanism and urging members to return to their positions and fulfill their responsibilities in various business activities.

After the public consultation, the Beijing stock exchange will further improve the relevant rules according to the situation of soliciting opinions, which will be issued and implemented after the implementation of relevant procedures. In the near future, the Beijing stock exchange will also solicit market opinions on the implementation of self regulatory rules related to the public offering registration system.