CHINA: SZSE Officially Launches Relevant Technology Systems to Reform ChiNext Board

Wednesday July 29 2020

On 28^th July 2020, the Shenzhen Stock Exchange (SZSE), in conjunction with China Securities Depository and Clearing (CSDC) and China Securities Finance Corporation Limited (CSF), officially launched relevant technology systems for the reform of the ChiNext board and pilot project of the registration-based IPO system to all market participants, and synchronously enabled the new data interfaces for trading and settlement. From July 27 onwards, the new technology system would fully support market participants’ needs regarding the online offering, transaction settlement, securities margin trading and the like for the ChiNext stocks and depository receipts under the registration-based IPO system.

To smoothly advance the reform of the ChiNext board and pilot project of the registration-based IPO system, SZSE has prioritized the work of ensuring the safe and stable operation of the system and made relevant technical preparations in an orderly way.

The reform of the ChiNext board covers many business links such as listing review, offering, trading, settlement, risk prevention and control, routine supervision, and delisting, and involves the transformation of main technology systems for various market participants such as the core institutions in the industry, securities agencies, fund companies, custodian banks, market information service providers, etc. Given the limited time and heavy tasks, this reform significantly tests the information technology capabilities of the securities industry. To ensure the smooth and on-schedule launch of the technology systems in the entire market, under the overall guidance of China Securities Regulatory Commission (CSRC) Science and Technology Supervision Bureau and the support of relevant departments, SZSE, in conjunction with CSDC and CSF, made careful preparations and organizations.

Under the joint efforts of all sides, on July 25, the technological and business issuance tests for the reform of the ChiNext board and the pilot project of the registration-based IPO system were smoothly completed, and the technology system was launched. That marked the good preparation of relevant technology systems in the whole market and the official use of the issuance function. Next, SZSE will work with CSDC and CSF and organize the whole-network business drilling and testing for registration-based stock trading services to ensure the smooth implementation of the reform of the ChiNext board.

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