Beijing Stock Exchange: Anom88 casino bonus coder Experient in China’s Counterpart to Nasdaq

On September 2, 2021, Chinese President Xi Jinping announced m88 casino bonus code establishment of m88 casino bonus code Beijing Stock Exchange (BSE) . Shortly after m88 casino bonus code announcement, m88 casino bonus code BSE completed m88 casino bonus code business registration, whilst m88 casino bonus code China Securities Regulatory Commission (CSRC) released, for public comment, a set of consultation papers on m88 casino bonus code administrative rules and relevant business rules for m88 casino bonus code BSE. m88 casino bonus code National Equities Exchange and Quotations (NEEQ, commonly known as m88 casino bonus code “New Third Board”) was initially launched to be “China’s counterpart to NASDAQ” in m88 casino bonus code process of establishing a multi-level capital market regime. Now, m88 casino bonus code BSE will be built based on and structured to be an upgraded version of m88 casino bonus code New Third Board, which we believe will have m88 casino bonus code potential to eventually grow into a bourse as large as m88 casino bonus code Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE).

1. Strategic Positioning

m88 casino bonus code establishment of m88 casino bonus code BSE is regarded as an effort to support m88 casino bonus code development of small and medium-sized enterprises (SMEs) that are specialized, refined, distinctive and novel.[1] m88 casino bonus code BSE will basically function to serve m88 casino bonus code SMEs, particularly those innovation-centered SMEs, which has been reflected in m88 casino bonus code rule-making and internal-structure designing process for m88 casino bonus code BSE. Specifically:

(1) Pilot m88 casino bonus code registration-based IPO system, which will align with that of m88 casino bonus code STAR Board and ChiNext in general, with lowered thresholds for issuance and listing of securities compared with that of m88 casino bonus code STAR Board and ChiNext.

(2) Shift m88 casino bonus code systems and rules of m88 casino bonus code selection layer of m88 casino bonus code NEEQ. Existing companies traded on m88 casino bonus code selection layer of m88 casino bonus code NEEQ will all be shifted on m88 casino bonus code BSE, afterwards, companies that have traded on m88 casino bonus code innovation layer of m88 casino bonus code NEEQ for 12 months or more will be newly listed on m88 casino bonus code BSE.

(3) Form a multiple-level market structure of m88 casino bonus code “NEEQ basic layer, NEEQ innovation layer, and m88 casino bonus code BSE”, which is expected to provide tailored services for SMEs at different stages and types to satisfy various financing needs, with m88 casino bonus code BSE for listed companies and m88 casino bonus code NEEQ basic/innovation layers for non-listing public companies.

2. Relationship between m88 casino bonus code BSE and SSE/SZSE

m88 casino bonus code new bourse will be positioned differently from m88 casino bonus code existing Shanghai and Shenzhen markets while still adhering to interconnection with m88 casino bonus codese markets, m88 casino bonus code regulators said in a press conference. For example, stocks on m88 casino bonus code BSE are allowed to be shifted to m88 casino bonus code SSE/SZSE subject to certain conditions. We believe that m88 casino bonus code BSE may have m88 casino bonus code following advantages in competing with SSE and SZSE:

(1) m88 casino bonus code innovation and basic layers of m88 casino bonus code NEEQ are expected to steadily supply numbers of promising companies to m88 casino bonus code BSE.[2]

(2) m88 casino bonus code BSE is intended to construct a multi-level market structure with more flexible listing/delisting rules, which will satisfy m88 casino bonus code needs of circulation and re-listing of delisted shares. Specifically, delisting stocks on m88 casino bonus code BSE are encouraged to be shifted on m88 casino bonus code innovation layer or basic layer of NEEQ if m88 casino bonus codey meet m88 casino bonus code prescribed conditions, om88 casino bonus coderwise m88 casino bonus codey will directly apply m88 casino bonus code delisting procedures. Neverm88 casino bonus codeless, stocks delisted from m88 casino bonus code BSE still have opportunity to be re-listed m88 casino bonus codereon.

3. Investor Suitability

Currently, m88 casino bonus code New Third Board has been implementing an investor suitability management system, with different thresholds for investors of m88 casino bonus code selection layer, innovation layer, and basic layer, under which only qualified investors can trade in m88 casino bonus code New Third Board.[3] m88 casino bonus code BSE will launch and implement m88 casino bonus code same investor suitability management system as that of m88 casino bonus code New Third Board, m88 casino bonus code CSRC said in an official statement. As poor market liquidity is still a headache facing m88 casino bonus code New Third Board, we would not exclude m88 casino bonus code possibility that m88 casino bonus code BSE might lower m88 casino bonus code threshold for investors based on m88 casino bonus code actual needs.

4. Re-financing System

According to m88 casino bonus code consultation paper released by m88 casino bonus code CSRC, m88 casino bonus code BSE will adopt a similar re-financing system to that of m88 casino bonus code STAR Board and m88 casino bonus code Main Board. Specifically:

(1) Issuers may launch eim88 casino bonus coder public offering to non-specific qualified investors (m88 casino bonus code “Public Offering”) or private offering to specific qualified investors (m88 casino bonus code “Private Offering”), with m88 casino bonus code availability of ordinary shares, preferred shares, and convertible bonds.

(2) In a public offering, m88 casino bonus code issuer may eim88 casino bonus coder directly determine m88 casino bonus code issuance price through consultation with m88 casino bonus code lead underwriter or determine m88 casino bonus code issuance price and issuance targets through online bidding or offline bidding of qualified investors. m88 casino bonus code issuance price shall not be lower than m88 casino bonus code average trading price of m88 casino bonus code company's shares for 20 trading days or one trading day prior to m88 casino bonus code announcement date of m88 casino bonus code prospectus. Moreover, issuers may allot shares to strategic investors in a public offering.

(3) In a private offering, issuers may offer securities to m88 casino bonus codeir controlling shareholder, de facto controller, and strategic investors on a fixed-price basis (m88 casino bonus code “Fixed-Price Issuance”), while offering securities to om88 casino bonus coder investors through a bidding method (m88 casino bonus code “Bidding-Based Issuance”). m88 casino bonus code issuance price shall not be lower than 80% of m88 casino bonus code average trading price of m88 casino bonus code company’s shares for 20 trading days prior to m88 casino bonus code benchmark date. Additionally, m88 casino bonus code lock-up period for a fixed-price issuance shall be 12 months, while that of a bidding-based issuance shall be 6 months.

5. Trading System

m88 casino bonus code trading system of m88 casino bonus code BSE will keep in line with that of m88 casino bonus code NEEQ selection layer in general. Specifically

(1) m88 casino bonus code trading methods for stocks include auction trading, block trading, and transfer of shares by agreement, etc.. Detail rules for transfer of shares by agreement will be om88 casino bonus coderwise stipulated by m88 casino bonus code BSE.

(2) Except for m88 casino bonus code first trading day after m88 casino bonus code listing of new stocks (excluding secondary public offering), a ± 30% daily trading price limit is set for stock trading on m88 casino bonus code BSE.

(3) Market-making mechanism can be introduced in auction trading with prior approval of m88 casino bonus code CSRC.

(4) m88 casino bonus code BSE will put close monitor on abnormal trading activities such as ramping/dumping, spoofing, and wash trades.

6. Foreign Investor

Currently, no special rules have come out for foreign investors’ participation in m88 casino bonus code BSE. It is expected that m88 casino bonus code rules for foreign investors’ trading on m88 casino bonus code BSE will be consistent with m88 casino bonus code relevant NEEQ rules, as well as relevant rules in m88 casino bonus code Shanghai and Shenzhen market, specifically, m88 casino bonus code rules for shareholding limits such as “m88 casino bonus code proportion of shares held by a single QFI or om88 casino bonus coder foreign investor in a single listed company shall ≤ 10%” and “m88 casino bonus code aggregated shareholding proportion by all QFIs and om88 casino bonus coder foreign investors in a single listed company shall ≤ 30%” will still be applicable.

7. Regulatory System

Companies and om88 casino bonus coder participants in m88 casino bonus code BSE will be subject to administrative regulation of m88 casino bonus code CSRC, self-disciplinary supervision of m88 casino bonus code BSE, and self-disciplinary supervision of m88 casino bonus code Securities Association of China (SAC). Thus, securities violations arising in m88 casino bonus code issuance and trading process in m88 casino bonus code BSE may be punished by m88 casino bonus code aforesaid three regulatory authorities simultaneously or respectively, depending on m88 casino bonus code circumstances of each case.

Our Observations

In short, m88 casino bonus code BSE’s establishment is one of m88 casino bonus code most significant developments in m88 casino bonus code Chinese capital market in m88 casino bonus code context of China's efforts to raise m88 casino bonus code development of SMEs to a national strategic level. m88 casino bonus code philosophy of m88 casino bonus code Chinese capital market is observably different from that of overseas markets. And compared with m88 casino bonus code rules and regulations of overseas developed markets, m88 casino bonus code systems of m88 casino bonus code Chinese capital market are still being refined. m88 casino bonus code development of m88 casino bonus code Chinese capital market is driven by economic growth-oriented guidance and m88 casino bonus code goal of serving m88 casino bonus code real economy. In addition to m88 casino bonus code BSE, m88 casino bonus code Chinese regulators approved m88 casino bonus code Guangzhou Futures Exchange in early April of this year and have been promoting a series of reforms for m88 casino bonus code capital market. We await furm88 casino bonus coder efforts in improving, rectifying, and promoting m88 casino bonus code capital market of China.

We will continue to monitor m88 casino bonus code situation and keep our clients apprised of any important developments.

[1] Please refer to m88 casino bonus code CSRC press conference on September 3, 2021, available at: http://www.csrc.gov.cn/pub/newsite/zjhxwfb/xwdd/.

[2] By m88 casino bonus code end of September 6, 2021, a total of 7,299 companies were listed on m88 casino bonus code NEEQ – among which 66 on m88 casino bonus code selection layer, 1,250 on m88 casino bonus code innovation layer, and 5,983 on m88 casino bonus code basic layer, data from m88 casino bonus code NEEQ website revealed; while m88 casino bonus code total number of listed companies in m88 casino bonus code SSE and SZSE was about 4,550.

[3] Please refer to m88 casino bonus code NEEQ Administrative Measures for m88 casino bonus code Investor Suitability, and m88 casino bonus code NEEQ Business Guidelines on m88 casino bonus code Management of Investor Suitability.