Q: At the opening ceremony for the SSE Star Market on June 13, an official of the Shanghai Stock Exchange (SSE) said that we could see the first batch of companies listed on the SSE Star Market within two months. Can you brief us on the progress at present?
A: First of all, I would like to thank all sectors of society for their attention to and support for launching the SSE Star Market and piloting the registration-based IPO system. Under the leadership of the China Securities Regulatory Commission (CSRC) and with the joint efforts of all market participants, the conditions for the listing of the first batch of companies on the SSE Star Market have been in place on the whole after more than eight months of efficient and orderly preparations, and the time is ripe. The listing ceremony for the first batch of companies on the SSE Star Market will be held on July 22 (Monday).
At present, the system of rules for the SSE Star Market has been established on the whole, and the acceptance and review of the companies applying for listing are being advanced steadily. By July 4, applications of 141 companies for issuance and listing had been accepted, the first round of inquiry letters had been sent to 118 companies, the stock listing committee for the SSE Star Market had examined and approved the application of 31 companies for issuance and listing, and 25 companies had received the official replies of the CSRC on approving the registration, and will be the first batch of companies listed on the SSE Star Market. The relevant business system for listing and trading has been put online with stable operation. The first batch of companies on the SSE Star Market will also conduct stress tests and business process tests for the trading system before the official listing. The investor suitability management and education for the SSE Star Market have been advanced effectively, with the first training session for the secretaries to directorates of the companies to be listed on the SSE Star Market successfully organized. At this point, the preparations for the listing and trading of the first batch of companies on the SSE Star Market have been in place on the whole.
As a new exploration in deepening the reform of the capital market in an all-round manner, the SSE Star Market is likely to encounter various new situations and problems in the process of development. Under the leadership of the CSRC, the SSE will adhere to the principle of strict standards and steady launch, respect the rules of the market, effectively check the access, raise the awareness on the bottom line, maintain concentration on reform, improve countermeasures against risks, and make every effort in implementation of the reforms. It is hoped that all market participants could join hands with the SSE to welcome the successful launch of the SSE Star Market.