SSE Releases Business Rules for Launching Sci-tech Innovation Board and Piloting Registration-based IPO System

The Shanghai Stock Exchange ("SSE") has recently enacted and issued six primary business rules, including the Rules for Review of Issuance and Listing of Stocks and the Measures for the Administration of the Listing Committee for Stocks on the Science and Technology Innovation Board, and meanwhile distributed four supporting rules, including the Guidelines for Contents and Formats of Sponsorship Statements for Listing of Stocks on the Science and Technology Innovation Board and the Guidelines for Acceptance of Applications for Issuing and Listing Stocks on the Science and Technology Innovation Board, followed by two more documents, namely the Guidelines for the Sponsorship for Enterprises to be Listed on the Science and Technology Innovation Board and Questions and Answers on Review of Issuance and Listing of Stocks on the Science and Technology Innovation Board. All of these rules and documents have taken effect immediately from the date of issuance.

Relevant business rules mainly introduce adjustments and improvements in the following aspects. The first is providing further clarity on the initial public offering (IPO) criteria for red-chip enterprises. The second is further optimizing the stock selling system. The third is further clarifying what contents in information disclosure documents will be examined and requirements for information disclosure. The fourth is further giving a reasonable boundary of responsibilities for follow-up supervision and guidance. Relevant business rules expressly state that the lock-up period for core technicians, as provided in the previous exposure draft of the Rules for Listing of Stocks on the Science and Technology Innovation Board, is shortened from three years to one year, adding that, after the end of the one-year lock-up period, a core technician will be allowed to sell annually 25% of the stocks he or she acquires before his or her employer's IPO. In addition, limits on the selling of stocks by shareholders of companies having not made profits yet are optimized, introducing a progressive arrangement for stock selling of controlling shareholders, actual controllers, directors, supervisors, senior executive officers, and core technicians.



(Source: http://www.sse.com.cn/lawandrules/sserules/tib/review/c/4729495.shtml

http://www.sse.com.cn/lawandrules/sserules/tib/review/c/4729494.shtml

http://www.sse.com.cn/lawandrules/sserules/tib/review/c/4729493.shtml

http://www.sse.com.cn/lawandrules/sserules/tib/issue/c/4729485.shtml

http://www.sse.com.cn/lawandrules/sserules/tib/listing/c/4729486.shtml

http://www.sse.com.cn/lawandrules/sserules/tib/trading/c/4729492.shtml)

Note: The link to the Chinese official website of the document is for your reference.