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China Securities Regulatory Commission: IPO restart! The blockbuster new deal helps the capital market to serve the high-level development of technology enterprises

author:Cross-border Easy Tax Pass
China Securities Regulatory Commission: IPO restart! The blockbuster new deal helps the capital market to serve the high-level development of technology enterprises

On April 19, 2024, the China Securities Regulatory Commission (CSRC) issued the "Sixteen Measures for the Capital Market to Serve the High-level Development of Technology Enterprises", which marks an important step forward for China's capital market in serving technology enterprises. The introduction of this policy not only provides a broader financing channel for science and technology enterprises, but also injects new vitality into the healthy development of the capital market.

Analysis of the core content of the policy

1. "Green Channel" for Financing

The China Securities Regulatory Commission (CSRC) will give priority to supporting technology-based enterprises with breakthroughs in key core technologies, and speed up the process of listing and financing, mergers and acquisitions, and bond issuance of these enterprises through the establishment of a "green channel" mechanism.

2. Equity incentive plan

Encourage technology-based enterprises to implement equity incentive plans before and after listing, especially to include core technical personnel in the scope of incentives, so as to stimulate innovation vitality.

3. Normalization of new share issuance

The China Securities Regulatory Commission (CSRC) will maintain the normalization of new share issuance, improve the efficiency and transparency of review, and meet the financing needs of technology-based enterprises at different stages.

4. Support the listing of unprofitable technology-based enterprises

For unprofitable technology-based enterprises with key core technologies and large market potential, the China Securities Regulatory Commission will support their listing in accordance with laws and regulations.

5. Functional positioning of the plate

Clarify the market positioning of each sector, such as the "hard technology" positioning of the Science and Technology Innovation Board, and the Growth Enterprise Market to serve growth-oriented innovative and entrepreneurial enterprises, so as to serve technology-based enterprises more accurately.

China Securities Regulatory Commission: IPO restart! The blockbuster new deal helps the capital market to serve the high-level development of technology enterprises

6. The market access tolerance of the Beijing Stock Exchange has been improved

Improve the market access tolerance of the Beijing Stock Exchange, and attract and cultivate innovative small and medium-sized enterprises to go public.

7. Shelf issuance system

Study the establishment of a shelf issuance system for the Science and Technology Innovation Board and the Growth Enterprise Market to improve the effectiveness and convenience of refinancing.

8. M&A and restructuring support

Appropriately increase the inclusiveness of the restructuring valuation of asset-light technology-based enterprises, and support enterprises to implement restructuring through a variety of payment instruments.

9. Bond market support

Promote the development of corporate bonds for scientific and technological innovation, and support bond financing for enterprises in high-tech and strategic emerging industries.

10. Private equity venture capital funds

Promote private equity venture capital funds to invest in the field of scientific and technological innovation, implement the "reverse linkage" policy, and promote a virtuous cycle of capital.

China Securities Regulatory Commission: IPO restart! The blockbuster new deal helps the capital market to serve the high-level development of technology enterprises

11. Optimization of market maker mechanism

Evaluate and optimize the market maker mechanism of the Science and Technology Innovation Board and the Beijing Stock Exchange to improve the efficiency of market price discovery and resource allocation.

12. "Pre-communication" mechanism

Improve the "pre-communication" mechanism for the listing and refinancing of technology-based enterprises, and improve the convenience and effectiveness of consultation.

conclusion

This series of measures by the China Securities Regulatory Commission will undoubtedly greatly promote the development of technology-based enterprises, and will also promote the further maturity and improvement of the capital market. By providing more diversified financing channels and more accurate services, technology-based enterprises will gain a broader space for growth. At the same time, these measures will also attract more long-term capital to invest in the field of scientific and technological innovation, and provide strong capital support for China's scientific and technological progress and industrial upgrading.

The author of this article is Mr. Mark, Chief Economist of Easy Tax Link

Disclaimer: This article is the original article of cross-border easy tax pass, and you are welcome to contact us for authorization to reprint.

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