Key investment points
Event: on January 7, 2022, the CSRC revised the guidance on the transfer of Listed Companies in the national share transfer system for small and medium-sized enterprises into the guidance on the transfer of Listed Companies in Beijing stock exchange (hereinafter referred to as the guidance).
The guidance on the transfer of the board of the Beijing stock exchange to the science and Innovation Board of the Shanghai Stock Exchange or the gem of the Shenzhen Stock Exchange has been finalized:
The guiding opinions continue the basic principle of “turning the board” in the previous guiding opinions and maintain the institutional framework and main contents of the opinions. (1) Scope of transferred sectors: qualified companies listed on the Beijing stock exchange can apply for transfer to the science and Innovation Board of Shanghai Stock Exchange or the gem of Shenzhen Stock Exchange; (2) Conditions for board transfer: those that have been listed on the Beijing stock exchange for more than one year and meet the conditions for listing on the transfer board (once listed on the original selection layer of the National SME share transfer system) shall be calculated together with the listing time of the Beijing stock exchange; (3) Board transfer procedure: the listed companies of Beijing stock exchange that apply for board transfer shall employ securities companies as listing sponsors in accordance with the relevant provisions of Shanghai Stock Exchange and Shenzhen Stock Exchange; (4) Share restriction arrangement: it is clear that the period of share restriction after the board transfer of listed companies on the Beijing stock exchange can, in principle, deduct the time that has been restricted in the original selection layer and the Beijing stock exchange.
The launch of the board transfer system of the Beijing stock exchange means that another substantive step has been taken in the interconnection of China’s multi-level capital market.
Under the expectation of the implementation of the main board registration system, all sectors are expected to realize interconnection in the future. The board transfer system will also force the Beijing stock exchange to continue to deepen reform and better reflect its inclusiveness, innovation and service.
The CSRC said that in the next step, it will organize the Shanghai Stock Exchange, Shenzhen Stock Exchange, Beijing stock exchange and China Clearing to make preparations for the board transfer, and evaluate and improve the relevant institutional arrangements according to the pilot situation. The establishment of Beijing stock exchange is an important measure to deepen the reform of the new third board, help to improve the multi-level capital market system and better serve the development of the real economy. It should be noted that if the application has been submitted to the Shanghai and Shenzhen Stock Exchange before the opening of the Beijing stock exchange, the original guidance and supporting rules shall apply. For applications submitted to the Shanghai and Shenzhen Stock Exchange after the opening of the Beijing stock exchange and before the guidance and supporting rules come into force, the Shanghai and Shenzhen Stock Exchange shall accept and review them with reference to the original rules.
Interpretation of policies and regulations of Beijing stock exchange: compared with the science and innovation board and the gem, it has advantages in a number of business processes.
1) organizational structure: different from the membership exchange, the Beijing stock exchange is funded and established by the national share transfer company, adopts the company system, and explores the unique organizational form and management system. Its main management personnel are the managers of the National SME share transfer system. Among them, Xu Ming is the chairman of the company, Sui Qiang is the vice chairman and general manager of the company, and Li Yongchun, Zhang Mei, Chen Yongming and Wang Li are the directors of the company. 2) Compared with gem and gem, the of Beijing stock exchange: lower listing threshold (one of the four sets of standards can be achieved), shorter review time (the review time of Beijing stock exchange is 2 months, and the review time limit of both gem and gem is 6 months in principle), more flexible trading mode (market makers are introduced at the same time in the bidding trading mode), greater trading rise and fall (30%) The capital operation mode is more flexible (relax the restrictions on the time and quantity of reduction of major shareholders, actual controllers and directors and supervisors; do not impose mandatory provisions such as cash dividend ratio, and encourage the company to decide according to the company’s own situation).
Risk tip: risk of insufficient liquidity: due to the characteristics of small and micro enterprises of the new third board company, there may be liquidity risk caused by insufficient transaction volume; Large performance fluctuation and delisting risk of the company: due to the small scale of the new third board company and limited ability to resist risks, there may be large performance fluctuation, and even delisting risk in extreme cases; The risk that the implementation effect of the policy of Beijing stock exchange does not meet the expectation
(source: Soochow Securities Co.Ltd(601555) )
