The State Council has recently released the Several Opinions on Strengthening the Risk Regulation and Prevention and Promoting the High-quality Development of Capital Market (the "Opinions").
The Opinions, consisting of nine parts, mark the third "Nine-Point Guideline" for capital market. Compared with the previous two guidelines, the new guideline mainly boosts the following highlights: (1) fully demonstrating the political aspect and the people-centered nature for capital market; (2) fully demonstrating the main goals of enhancing regulation, preventing risks, and promoting high-quality development; and (3) fully demonstrating goal and problem orientations. Notably, the Opinions call for strictly controlling the access to issuance and listing. Actions will be taken to improve the issuance and listing systems, reinforce the responsibilities for the entire chain of issuance and listing, and strengthen the oversight on issuance and underwriting. The Opinions also stress enhanced regulation on delisting. Efforts will be made to deepen the reform of the delisting system and accelerate the formation of a normalized delisting pattern in which all unqualified firms shall be delisted and liquidated in a timely manner; adopt stricter mandatory delisting standards, provide multiple delisting channels, reduce the value of "shell" resources, and strengthen delisting supervision.