CSRC to Facilitate Transfer of Over-the-Counter SME’s onto the Main Boards of Chinese Bourses


The China Securities Regulatory Commission (CSRC) has issued a new directive to facilitate the transfer of companies from the over-the-counter system of the National Equities Exchange and Quotations (NEEQ) onto the main boards of Chinese bourses.

On 3 June CSRC issued the “Guidance Opinions on the Transfer Listing of Companies Registered on the National Equities Exchange And Quotation” (关于全国中小企业股份转让系统挂牌公司转板上市的指导意见).

According to CSRC the purpose of the new opinions is to “establish a board transfer listing mechanism, standardise board transfer listing conduct, and prepare and coordinate regulatory systems for different listing paths.”

Key contents of the Guidance Opinions include:

  1. Basic rules for the establishment of a board transfer listing mechanism which will “uphold the principles of market guidance, advanced trials and risk control.”
  2. Primary system arrangements, including principle-based regulations for the scope of board transfers, board transfer listing conditions and procedures, and share sale restrictions.
  3. Regulatory arrangements – clarification of the responsibilities of securities exchanges, NEEQ and intermediaries.

CSRC previously released a draft version of the Guidance Opinions to the public from 6 March – 5 April 2020 for feedback.

CSRC said that the next step will be to arrange for the Shanghai Stock Exchange, the Shenzhen Stock Exchange, NEEQ and China Securities Depository and Clearing Corporation to engage in preparatory work.

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