Original title: Basically complete rules and regulations of the Beijing Stock Exchange
● Our reporter Zan Xiuli Wu Keren
A few days ago, a batch of basic and crucial institutional rules were released, which marked the countdown to the opening of the Beijing Stock Exchange.
On October 30, the China Securities Regulatory Commission and the Beijing Stock Exchange successively issued a series of regulations, normative documents and business rules, which means that the reform of the new third board and the establishment of the Beijing Stock Exchange are basically complete. These system rules will be implemented on November 15.
Many experts interviewed believe that the release and implementation of the main system rules means that the Beijing Stock Exchange has the conditions for market opening and the market opening time is basically clear. Under the layout arrangement of seeking progress while maintaining stability and dislocation development, the opening of the Beijing Stock Exchange will not have an impact on the Shanghai and Shenzhen markets.
The system of institutional rules is gradually taking shape
On the evening of October 30, the China Securities Regulatory Commission issued 3 regulations and 11 related normative documents on the issuance and listing, refinancing, and continuous supervision of the Beijing Stock Exchange. In order to achieve system integration and further enrich the financing tools of the national equity transfer system, the China Securities Regulatory Commission has also revised two regulations on the supervision of non-listed public companies, and formulated two content and format guidelines for the targeted issuance of convertible bonds by listed companies. Subsequently, the Beijing Stock Exchange issued 4 basic business rules for listing and review and 6 supporting rules and guidelines.
“The above-mentioned regulations and normative documents, together with the self-discipline rules formulated by the Beijing Stock Exchange, have jointly established a set of rules and regulations of the Beijing Stock Exchange that are compatible with the characteristics and growth stages of innovative small and medium-sized enterprises, fully embodying dislocation, tolerance, and flexibility. , The characteristics of the inclusive market.” The CSRC stated that from the perspective of the rule system, relevant regulations, normative documents, and self-discipline rules are connected to each other, and the main system arrangements, information disclosure content, and self-discipline management requirements are regulated separately. From the perspective of the content of the rules, it covers all aspects of issuance financing, information disclosure, corporate governance, supervision and management. From the perspective of the characteristics of the rules, adhere to the principle of marketization, highlight the main responsibility of the exchange, and fully authorize the Beijing Stock Exchange to formulate self-discipline rules based on the actual market conditions on the basis of laws, regulations and rules.
Beijing Stock Exchange is ready to go
A reporter from China Securities News noted that the above-mentioned system and rules will be implemented on November 15, 2021. “The basic system is basically sound, the market opening time is basically clear, and the Beijing Stock Exchange is ready to go, and the gong is only waiting for the market to open.” Some industry experts said.
Industry insiders explained that the main system and rules will be implemented on November 15, basically clarifying the opening time of the Beijing Stock Exchange. “Although there are still two basic business rules for the end of the public consultation that have not been officially released, and the market opening clearance test has not yet been completed, at the time of November 15th, the Beijing Stock Exchange has in principle the conditions for market opening.” The industry insider said.
Zhu Haibin, head of research on the NEEQ of Essence Securities, said that since mid-September, the Beijing Stock Exchange’s opening simulation test and two network-wide tests have been successfully completed, indicating that the core technology system of market institutions has opened the Beijing Stock Exchange in accordance with relevant requirements. The involved transactions, market quotations and other businesses were transformed to meet the online requirements. Based on the current actions of exchanges, investors, and companies to be listed, he believes: “All preparations are basically in place, and the Beijing Stock Exchange is on the line and ready to go.”
When issuing the above-mentioned business rules, the Beijing Stock Exchange stated that it will steadily promote the issuance review, market organization, and technical preparations, and make every effort to implement the tasks of high-quality construction of the Beijing Stock Exchange.
Previously, the CSRC spokesperson Gao Li said that on the basis of maintaining the stable operation of the market, the CSRC and relevant parties will make solid and meticulous preparations for systems, enterprises and markets, strengthen policy publicity, guidance and interpretation, and make every effort to protect the North. The stock exchange opened steadily and handled major and good things steadily.
Dislocation development with Shanghai and Shenzhen markets
Regarding the impact of the opening of the Beijing Stock Exchange on the Shanghai and Shenzhen markets, there have been some discussions in the market recently. In this regard, many industry insiders said that the opening of the Beijing Stock Exchange will not have an impact or impact on the Shanghai and Shenzhen Stock Exchanges.
“It is expected that most companies listed on the Beijing Stock Exchange have low market capitalization and small financing scale, and limited capital flow to the Shanghai and Shenzhen markets. The Beijing Stock Exchange mainly serves innovative small and medium-sized enterprises. The latter is in an earlier stage of industrial development and will provide investors with More investment options. Overall, it will help guide more social capital to enter the market and invest in technologically innovative companies.” Li Xudong, member of the Investment Banking Committee and Managing Director of China Securities Investment Banking, told reporters.
Zhu Haibin predicts that the overall scale of the Beijing Stock Exchange’s pre-opening market is not large, and the total amount of financing is much smaller than that of the Shanghai and Shenzhen markets. At the same time, the positioning difference between the Beijing Stock Exchange and the Shanghai and Shenzhen Stock Exchange is obvious. Investors who meet the entry threshold are more mature and rational.
“At present, the overall market value of 68 selected-tier companies is only about 240 billion yuan, and the circulating market value is less than 100 billion yuan. Compared with the total market value and the circulating market value of the Shanghai and Shenzhen markets, they are very limited.” said Wang Junguo, chairman of the Guide Fund.
In response to the follow-up work plan, the China Securities Regulatory Commission stated that it will adhere to steady progress, adhere to dislocation development, highlight characteristics, coordinate the implementation of various systems, give full play to the “leading” role of the Beijing Stock Exchange, and continue to strengthen innovation with the new third board. The system linkage between the level and the basic level stimulates the overall vitality of the market, and strives to build the main position of serving innovative small and medium-sized enterprises to better serve the high-quality development of the real economy.
Chen Li, chief economist and director of the Institute of Chuancai Securities, believes that in the future, the Beijing Stock Exchange will form a dislocation development pattern with the Shanghai and Shenzhen Stock Exchanges, complement and promote each other, and the clear positioning and division of each market segment will help. Long-term stable development in the Chinese securities market.