Targeted Continuous Supervision System
Formulate a continuous listing supervision system in line with the characteristics of sci-tech companies, improve the quality of listed companies, and promote the construction of the STAR market.
1. Targeted Information Disclosure
● Strengthen the disclosure of industry information, core technology, operating risk, corporate governance and performance fluctuation
● Make more flexible arrangements for information disclosure in terms of quantitative indicators, timing, method, suspension or exemption from disclosure of commercially sensitive information, and release of significant information during non-trading hours
2. Flexible equity incentive system
● Expanded the upper limit and the eligible target of equity incentives
● Increase flexibility in the price of granted restricted stocks
● Improve the convenience of the implementation of equity incentives
3. Standardized differentiated voting rights system
● Set stricter prerequisites
● Restrict the qualifications and subsequent changes of subjects with special voting rights
● Protect the rights of shareholders with ordinary voting rights
● Strengthen internal and external monitoring mechanisms
4. Optimized shareholding reduction system
● Maintain the stability of control and technical team of sci-tech companies
● Restrict the shareholding reduction of unprofitable companies
● Improve the methods of shareholding reduction. Shareholders may transfer the pre-IPO shares through non-public transfer and placement
● Strengthen the disclosure of shareholding reduction
5. Efficient M&A mechanism
● The mergers and acquisitions of sci-tech companies are subject to the review by the Exchange; those involved in the issuance of shares shall be reported to the CSRC for registration after being approved by the Exchange. Matters such as auditing standards are prescribed by the exchange.
Strict Delisting System
Delisting Arrangements
● Cancel the suspension of listing and resume listing section
● Companies that meet the financial delisting threshold for the first year will be issued a delisting risk warning; those who meet the financial threshold for two consecutive years will be delisted
● Consistent to the registration system, there is no re-listing section
● Companies delisted due to material violations, shall never file listing applications
Delisting Threshold
1. Material Violation Conducts Threshold
Fraudulent offering; material information disclosure violations; serious violations involving national security, public security, ecological security, production safety and public health
2. Trading Threshold
Quantitative threshold for stock turnover, price, market cap., and number of shareholders
3. Financial Threshold
Qualitative threshold for incapable of continuing as a going concern; Quantitative threshold for net profit before and after non-recurring gain or loss, operating revenue, and net assets; R&D failure for R&D type companies
4. Regulation Threshold
Failing to disclose financial reports on time; material defects in information disclosure or compliant operation
The above content is only for reference. Please refer to the full text of the rules.