Q: In his keynote speech at the 1st China International Import Expo (CIIE), President Xi Jinping announced the introduction of the sci-tech innovation board and the pilot registration system in the Shanghai Stock Exchange (SSE). Please make a brief introduction.
A: The decision made by the CPC Central Committee to establish the sci-tech innovation board and pilot the registration system in the SSE is crucial to optimizing the multi-tiered capital market system, enhancing the capital market's capability to serve the real economy and facilitating the cause to build Shanghai into an international financial center and science and technology innovation hub. Establishing the board and the system will be a key breakthrough for the SSE to give play to market functions, bolster areas of weakness in institutions and enhance inclusiveness.
The SSE will earnestly implement the instruction from President Xi Jinping, and under the guidance of the China Securities Regulatory Commission (CSRC), carry out research to formulate schemes for the sci-tech innovation board and the pilot registration system, solicit market opinions, conduct submission and approval procedures, and thereafter launch the board and the system. The sci-tech innovation board will be a new board independent from the existing main board, and the registration system will be piloted on the sci-tech innovation board.
Establishing the sci-tech innovation board and piloting the registration system is a key reform initiative for the capital market to enhance the capability to serve sci-tech innovation enterprises, raise market inclusiveness and strengthen market functions. Through new mechanisms of issuance, trading, delisting, investor suitability and capital restriction for securities companies, through introducing medium-and long-term capitals and other supporting measures, the pilot program will be carried out in an incremental way, and new capitals will be introduced in accordance with the progress of the pilot program, thus aiming for a balance between investing and financing, between the primary and secondary markets, and between the interest of old and new shareholders in listed companies, facilitating positive market expectations.
For the next step, under the arrangements of the CSRC and according to relevant laws, rules and policies, the SSE will formulate work schemes, rules and supporting mechanisms, develop relevant technical systems and promote the steady and smooth implementation of the sci-tech innovation board and the pilot registration system at the SSE.