To carry out the Implementing Opinions on the Setting-up of the Science and Technology Innovation Board and the Launch of the Pilot Registration System on the Shanghai Stock Exchange, further promote the establishment of the STAR Market and the pilot registration system reform, and improve the trading system of the STAR Market, under the guidance of the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange (SSE) actively promotes the introduction of a new mechanism for market making trading of stocks on the STAR Market, and goes all out to make preparations for the market making trading of stocks on the new board. At present, the SSE has completed various preparatory work and is ready to launch the stock market-making trading business of the STAR Market. As of October 14, 2022, with the approval of the CSRC, 14 securities companies have obtained the qualification of market making trading business for listed securities, indicating that some securities companies have the conditions to carry out the market-making trading business of stocks on the STAR Market.
Since the launch of the STAR Market, the registration system has been piloted steadily, and reform on basic institutions such as issuance, listing, information disclosure, trading, and delisting has been promoted in a coordinated manner. Those institutions have withstood the test from the market and created favorable conditions for introducing the market maker mechanism. Earlier on May 13, 2022, the CSRC issued the Pilot Regulations on Market Making Trading of Stocks on the STAR Market by Securities Companies, and the SSE issued Detailed Rules for Implementation of Market Making Trading of Stocks on the STAR Market and guidelines on July 15, 2022. After issuing the rules, the SSE actively carried out preparations for market making trading of stocks on the STAR Market, developed and constructed a market making business management system, formulated targeted risk monitoring and supervision and management plans, and completed special technical tests for market making by securities companies and 4 tests on the whole network. Next, the SSE will complete the filing of the market maker's market making trading business for specific STAR Market stocks based on the application of qualified securities companies, and announce it to the market through the relevant column on the official website. The market maker will carry out the market making trading of stocks on the STAR Market after completing the filing.
The introduction of market maker mechanism is an important measure to continuously improve the basic system of the capital market and further play the role of pilot zone of STAR Market reform. It is conducive to improving the liquidity of stocks, releasing market vitality, enhancing market resilience, and is of great significance to comprehensively promote the high-quality development of the new board. In the next step, under the leadership of the CSRC, the SSE will continue to deepen the reform and innovation of the STAR Market, comprehensively promote the high-quality development of the new board, and provide strong support for the construction of a new development pattern.