Another important rule falls to the ground!
On the evening of March 25, the Shanghai and Shenzhen stock exchanges respectively issued the Interim Measures for the listing and trading of depositary receipts interconnected with overseas stock exchanges and relevant business supporting guidelines.
The Shanghai and Shenzhen Stock Exchange said that in the follow-up, it will continue to provide interconnected depositary receipts business services, complete the follow-up work of rules preparation, technical system transformation and market services, continue to deepen the cross-border cooperation mechanism, and unswervingly promote the institutional two-way opening of the capital market in accordance with the unified deployment of the CSRC.
China depositary receipts individual investor threshold set at 500000 yuan
Specifically, the above interim measures and relevant business supporting guidelines clarify and stipulate the listing conditions of China Depositary Receipts (CDR), the pre listing and verification arrangement after opening the financing function, the trading and cross-border conversion mechanism, the requirements of continuous supervision and the requirements of investor Appropriateness.
First, it defines the conditions for overseas issuers to apply for the first listing of Chinese depositary receipts on the Shanghai and Shenzhen Stock Exchange, including the conditions for public offering and the market value standard (the average market value of overseas issuers calculated according to the closing price of basic shares in the 120 trading days before the application date shall not be less than 20 billion yuan) Listing period (at least 3 years of listing in overseas stock exchanges and other listing period conditions agreed by the CSRC and overseas securities regulatory authorities according to the market stratification of overseas underlying stocks), initial scale (the number of China depositary receipts applied for listing shall not be less than 50 million, and the market value of corresponding underlying stocks shall not be less than RMB 500 million).
Second, it stipulates the investor suitability conditions and requirements for the trading of Chinese depositary receipts. Specifically, when an individual investor participates in the trading of China depositary receipts, on the one hand, the daily assets in the securities account and capital account shall not be less than 500000 yuan 20 trading days before the opening of the application authority (excluding the funds and securities integrated by the investor through margin trading), on the other hand, it is required to participate in securities trading for more than 24 months.
Third, clarify the basic principles and requirements of continuous information disclosure of Chinese depositary receipts. Including the need for overseas issuers and relevant information disclosure obligors to follow the principles of fair disclosure, simultaneous disclosure and consistent disclosure, stipulate the content, format and audit of periodic reports, and clarify the disclosure standards of major transactions and connected transactions. For example, in terms of periodic reports, overseas issuers can prepare periodic reports in RMB or foreign currency.
Fourth, clarify the differentiated trading mechanism of China’s depositary receipts, such as market maker system, price limit on the first day of listing, etc. The Shanghai and Shenzhen stock exchanges impose price limits on the trading of Chinese depositary receipts, with a rise and fall ratio of 10%.
seal for institutional two-way opening of capital market
Recently, Sany Heavy Industry Co.Ltd(600031) , Gotion High-Tech Co.Ltd(002074) , Lepu Medical Technology (Beijing) Co.Ltd(300003) , Ningbo Shanshan Co.Ltd(600884) , Ningbo Shanshan Co.Ltd(600884) .
On March 16, the meeting of the Finance Committee of the State Council made it clear to deepen reform, expand opening-up, continue to support all kinds of enterprises to list abroad, and prescribe “reassurance” for the current capital market problems. On the same day, the CSRC said that it would pay close attention to promoting the implementation of new regulations on the supervision of overseas listing of enterprises, support all kinds of qualified enterprises to list abroad, and maintain the smooth channels of overseas listing.
Various signals indicate that China’s capital market will firmly implement institutional two-way opening-up. Insiders pointed out that the continuous expansion of overseas GDR issuing enterprises is only a “microcosm” of the firm implementation of institutional two-way opening in China’s capital market.
One belt, one road, is to continuously expand the foreign investment channels. We should promote the “one belt and one way” capital market exchange and cooperation, serve the capital market and open up to the outside world. China’s capital market has an international influence.
