Wednesday September 23 2020

News Source: Global Exchanges

Focus: Stock Exchange Regulation

Type: General

Country: China

Link: https://bit.ly/2FTfxAz




On 21st September 2020, Shenzhen Stock Exchange (SZSE) announced that SZSE has systematically advanced new stock issuance and underwriting, the important link for pre-IPO companies to enter the capital market, by actively giving play to the role of the market-oriented book building, pricing and placing mechanisms. For the recent new circumstances regarding the book building and pricing of some new stocks, SZSE has attached great importance and conduct special surveys to seek relevant opinions and suggestions from main market players. Through these efforts, SZSE aims to better leverage the role of the market-oriented issuance pricing mechanism so that it can further optimize resource allocation and promote the high-level circulation of technology, capital and the real economy.

In accordance with the requirements of “Four Reveres and One Synergy” from the China Securities Regulatory Commission (CSRC), SZSE will adhere to the market-oriented and rule-of-law reforms to strengthen the regulation on stock issuance and underwriting on the ChiNext Board. First, SZSE will further urge underwriters to earnestly perform their duties to improve investment report quality and conduct prudent and reasonable pricing. Second, SZSE will further urge buyers to make independent and objective quotations with professionalism, integrity and compliance. Third, SZSE will further strengthen the regulation on the issuance and underwriting process. SZSE will intensify the punishment against violations in the issuance and underwriting to resolutely maintain the normal order of stock issuance.

A sound capital market ecosystem is the results of the joint construction and maintenance from all sides. Buyers, sellers and relevant institutions should all enhance their awareness of standardization, responsibility, and risk to promote the formation of stable market expectations. Furthermore, all market players should strive to ensure that the reform of the ChiNext Board and the pilot project of the registration-based IPO system can make a good start with practical effects.

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