CSRC: 23 Measures To Support Enterprises To Accelerate Recovery And Development

Shanghai and Shenzhen stock exchanges are exempt from the initial listing fee, annual listing fee and online voting service fee of shareholders' meeting in 2022.

Guide more social funds to flow to anti epidemic related enterprises

In order to support the regions and industries seriously affected by the epidemic to accelerate the recovery and development, the CSRC issued the notice on further exerting the function of capital market to support the accelerated recovery and development of regions and industries seriously affected by the epidemic situation (hereinafter referred to as the "notice") on May 20, and launched 23 practical measures.

The circular is an important measure to implement the spirit of the recent meeting of the Political Bureau of the Central Committee, the executive meeting of the State Council and the meeting of the financial committee of the State Council. It is conducive to supporting market entities to tide over difficulties, to maintaining the stability of the capital market, and to promoting the recovery and development of the real economy.

The circular focuses on increasing direct financing support, implementing the extension policy, optimizing the regulatory arrangements, and giving full play to the role of industry organizations. It also increases policy support in the aspects of enterprises' application for initial listing, listing on the Beijing stock exchange, refinancing, merger and acquisition, corporate bonds and Asset Securitization products; Flexible arrangements such as extension of the time limit of the feedback, inquiry and reply, and financial information need to be submitted; Through video conference and other off-site methods, as well as reducing the relevant fees of listed companies and exchange members, the flexibility and temperature of supervision are reflected; We should give full play to the role of securities fund and futures business institutions to help fight the epidemic and return to work and production. The "notice" is mainly aimed at areas and industries seriously affected by the epidemic, including Shanghai, Jilin and other areas where measures such as containment management and static management are fully implemented, as well as catering, retail, tourism, civil aviation, highway, waterway and railway transportation that are seriously affected by the epidemic. It will be adjusted dynamically according to the situation.

Attachment:

On further exerting the function of capital market

Notice on supporting regions and industries seriously affected by epidemic situation to accelerate recovery and development

Zheng Jian Fa [2022] No.46

All dispatched offices, exchanges, subordinate units, associations and departments of the CSRC:

In order to thoroughly implement the decisions and arrangements made by the CPC Central Committee and the State Council, give further play to the functions of the capital market, and support regions and industries seriously affected by the epidemic to accelerate the recovery and development, the relevant matters are hereby notified as follows:

First, take effective measures to increase direct financing support

　　1. For the enterprises whose performance in 2022 is seriously affected by the epidemic situation and industries that apply for initial listing, on the premise of conforming to the plate positioning and IPO conditions, and verified by the intermediary agencies, and does not have a significant adverse impact on the sustainable profitability or sustainable operation ability, the relevant audit or registration work shall be promoted normally. By the end of 2022, the refinancing applications of Listed Companies in the regions and industries seriously affected by the epidemic situation shall be connected by special personnel, and the applications shall be submitted and approved immediately.

　　2. For those seriously affected by the epidemic situation and industrial enterprises applying for listing on the Beijing stock exchange and listing on the national stock transfer system, special personnel shall be assigned to connect, report and approve the application and issue the application immediately after approval. If enterprises in areas and industries seriously affected by the epidemic situation issue corporate bonds or asset securitization products, or if the funds raised by bonds are used in the fields related to epidemic prevention and control or used to repay the bond products due during the period of epidemic prevention and control, special personnel shall be specially assigned for docking and immediate report and approval.

　　3. The "small amount quick" audit mechanism is applicable to the application of listed companies issuing shares to purchase assets in areas and industries seriously affected by the epidemic, and the requirement of cumulative calculation in the last 12 months is no longer applicable when calculating the transaction amount. In case of issuing shares to purchase assets and raising matching funds at the same time, the restrictions on the proportion of supplementary funds raised to supplement working capital and repay debts shall be relaxed.

　　4. We will accelerate the audit progress of public fund products, especially equity funds and anti epidemic theme funds. Support shall be given in accordance with laws and regulations for the administrative licensing of fund products related to enterprises in areas and industries seriously affected by the epidemic.

Second, implement the extension policy to reflect regulatory flexibility

　　5. The time limit for reply to feedback and review inquiry of issuers in regions and industries seriously affected by the epidemic situation can be extended by 3 months, and the time limit for reply to notification letter can be extended by 1 month. For enterprises in regions and industries seriously affected by the epidemic to apply for issuance of corporate bonds and asset securitization products, the time limit for reply and suspension of feedback in the audit stage shall be suspended for three months.

　　6. If the merger and reorganization projects of Listed Companies in the regions and industries seriously affected by the epidemic can not update the financial information or issue the notice of the general meeting of shareholders on schedule, they can apply for the extension of the validity period of the financial information or the notice time of the general meeting of shareholders for one month after fully disclosing the specific impact of the epidemic on the reorganization, which can be extended three times at most.

　　7. After the listed companies in the regions and industries seriously affected by the epidemic situation have obtained the administrative license approval for major assets reorganization, they may apply for the suspension of the validity period of the approval documents, and the suspension period shall not exceed 12 months.

　　8. We should support the filing of private funds in areas seriously affected by the epidemic, appropriately extend the filing and information submission time limit of the first private equity fund of the manager, and appropriately relax the requirements for the signature and seal of private fund registration materials and some industrial and commercial materials.

Third, optimize the supervision work arrangement and transfer the supervision temperature

　　9. Through video conference and other means, ensure the normal progress of the meeting of the national development and Examination Commission, the reorganization committee and the municipal Party committee. In the process of examination or registration, such as initial listing, listing in Beijing stock exchange, refinancing, merger and reorganization, we should implement the electronic, contactless reporting and delivery mechanism, strengthen the guarantee mechanism of telephone communication and online consultation between audit departments and issuers, listed companies and intermediary agencies, and provide services with high efficiency and quality.

　　10. The relevant documents can be submitted by the applicant or the company's electronic signature or seal. For those natural persons who are really affected by the epidemic situation and cannot sign uniformly, they can do so by providing signature pages and scanning documents electronically.

　　11. If an enterprise applying for issuing bond products is really affected by the epidemic situation and is unable to submit relevant documents with signature and seal in time, the lead underwriter may first issue relevant instructions and then make supplementary submission according to the situation.

　　12. For enterprises in regions and industries seriously affected by the epidemic situation, if they plan to apply for initial listing and listing on the Beijing stock exchange by the end of June 2022 with the annual report of 2021, if there are difficulties in on-site visit, the CSRC can carry out pre communication on the guidance and acceptance in advance by means of electronic network, and can adopt the off-site acceptance mode.

　　13. For enterprises in regions and industries seriously affected by the epidemic situation that have issued securities and listed on the stock market, if their performance declines sharply due to the impact of the epidemic in 2022, appropriate supervision and tolerance shall be given to the issuers and relevant recommendation agencies.

　　14. For the newly established securities fund institutions in areas seriously affected by the epidemic situation, on-site inspection can be carried out by means of online video, followed by supplementary verification, so as to support the company to obtain business license as soon as possible after meeting the opening conditions.

　　15. On the premise of maintaining effective supervision, more flexible regulatory arrangements should be implemented for securities fund and futures business institutions in areas seriously affected by the epidemic, including allowing the delay in submitting relevant statements and implementing the electronic permit filing. After taking effective measures to prevent risks and conflicts of interest and reporting to the CSRC, flexible arrangements are allowed in terms of staffing, isolation and balance, process control, etc.

　　16. We will optimize the operational arrangement of information disclosure business in Shanghai and Shenzhen stock exchanges and appropriately extend the through time period of information disclosure. Support market entities to handle business online, and support listed companies to hold online shareholders' meetings or bond and asset-backed securities holders' meetings. If lawyers are really unable to attend the meeting due to the impact of the epidemic, they can witness the shareholders' meeting by video and other means, and carry out bookkeeping and filing work.

　　17. For the securities companies involved in resolving the liquidity risk of private enterprises, especially listed private enterprises, regulatory support should be given in the calculation of risk control indicators, the establishment of private fund subsidiaries and product filing, classification and rating.

　　18. Shanghai and Shenzhen stock exchanges are exempt from the initial listing fee, annual listing fee and online voting service fee of shareholders' meeting in 2022. Beijing stock exchange will not charge the annual listing fee of Listed Companies in 2022. The first listing fee and annual fee of companies listed in relevant regions in 2022 will be exempted from the national share to equity companies. CSDCC is exempt from the registration and settlement fees of relevant issuers in 2022. All futures exchanges shall reduce the handling fees and seat fees of relevant futures operating institutions. Support the associations to increase member services through free and reduced membership fees, deferred payment of membership fees, and free training.

Fourth, give full play to the role of industry organizations to help fight the epidemic and return to work

　　19. We will encourage securities companies to play an active role in financing intermediaries and support equity financing and bond financing in regions and industries seriously affected by the epidemic. Guide the securities companies to negotiate with clients who have difficulty in repaying the equity pledge due and extend the period for 3 to 6 months. For the margin trading customers who are isolated or treated due to epidemic prevention and control, the forced closing position shall be reduced and flexible treatment shall be conducted.

　　20. We should actively guide investors to invest in their own funds and actively guide them to invest in their own funds.

　　21. Securities companies are encouraged to set up private equity asset management products. Private equity fund subsidiaries are encouraged to set up private equity fund products in accordance with the principles of marketization and legalization, so as to meet the financing needs of relevant enterprises and reduce financing costs.

　　22. We should give full play to the role of futures market, give full play to the function of futures hedging, and help enterprises in regions and industries seriously affected by the epidemic situation to manage their risks. We should pay close attention to the cultivation of industrial customers and steadily expand the "order of stable futures price" to energy and chemical futures such as asphalt and low sulfur fuel oil. The futures companies with outstanding performance in serving the areas and industries seriously affected by the epidemic during the epidemic period will be given additional points in the classification evaluation.

　　23. We will continue to promote the implementation of more measures for opening up the capital market to the outside world, understand and respond to the demands and concerns of foreign investors in a timely manner, and ensure that foreign institutions can apply the supporting policies equally.

All units and departments of the CSRC system should further improve their political standing, integrate their thoughts and actions into the decision-making and deployment of the Party Central Committee and the State Council, actively carry out research and visits, understand the difficulties and demands of market entities, strengthen communication and cooperation with other departments, jointly help enterprises solve practical problems, and solidly promote the implementation and effectiveness of various policies, Support enterprises to overcome the impact of the epidemic, quickly out of the predicament, and achieve better development.

China Securities Regulatory Commission

20 may 2022