ISSUING AUTHORITY:

China Securities Regulatory Commission

DATE OF ISSUANCE:

September 3, 2021

EFFECTIVE DATE:

September 3, 2021

On September 3, 2021, the China Securities Regulatory Commission (CSRC) released several operation rules to seek public comments on the listing, trading and membership management procedures of Beijing Stock Exchange, the newly-established bourse in China and a primary platform for innovation-oriented small and medium-sized enterprises (SMEs).

The rules include Administrative Measures of Beijing Stock Exchange for Registration of Public Offerings of Shares to Non-specific Qualified Investors (for Trial Implementation), Administrative Measures of Beijing Stock Exchange for the Registration of Securities Issuance by Listed Companies (for Trial Implementation) and Measures for Continuous Supervision of Listed Companies of Beijing Stock Exchange (for Trial Implementation) (hereinafter collectively referred to as the Rules).

Under the draft Rules, companies traded on the National Equities Exchange and Quotations (NEEQ, also known as the “New Third Board”) Selected, the highest tier of the NEEQ, will be transferred to the Beijing Stock Exchange. Qualified companies traded on the NEEQ Innovation, the second-highest tier at NEEQ, for at least 12 consecutive months can apply to list on the Beijing Stock Exchange. The listing mechanism will match with the registration-based IPO system.

The Beijing Stock Exchange will generally continue the trading rules of the NEEQ Selected to ensure the consistency of market transactions. In accordance with the Rules, the stock exchange will not impose a limit on the price fluctuations on the first trading day, but trading will be suspended for ten minutes if stock prices rise by over 30 percent or drop by over 60 percent. Daily trading movements will be restricted to within 30 percent after the first day of trading.

While the STAR Market of Shanghai Stock Exchange mainly serves the technology innovation companies which aim to fulfill the country's key strategies and make key technological breakthroughs and the ChiNext-listed companies focus on the integration between traditional industries and new technologies, companies listed on the Beijing Stock Exchange are generally at an earlier development stage. The three exchanges will complement each other to facilitate the capital funding initiatives among companies.

Reference:

关于就《北京证券交易所向不特定合格投资者公开发行股票注册管理办法（试行）》等规章公开征求意见的通知