Implementing the registration-based IPO system across the board is a major reform that involves the overall situation of the capital market and an important measure for the capital market to refine basic rules and regulations, give play to the functions of the market, improve the business environment, and better support scientific and technological innovation.

To ensure steady implementation of the reform, SZSE has, centering on the goals of the reform, taken up the responsibilities as the implementer of the reform and carried out the “Three Transparents and Two Improvements” Campaign. It is designed to deepen transparent review, transparent supervision and transparent service and promote the improvement in review quality and efficiency and in the culture of integrity so as to build a transparent, honest, quality registration-based IPO system. Relevant officials of SZSE recently answered reporters’ questions regarding the action.

Q: It’s mentioned again in this year’s Report on the Work of the Government that we shouldadvance the reform of a registration-based IPO system. The implementation of the across-the-board registration-based IPO system is currently at a critical period. During the process, how will SZSE ensure the stable and long-term implementation of the reform so as to better support scientific and technological innovation and promote high-quality development?

A: To implement the registration-based IPO system across the board is a major task that the CPC Central Committee and the State Council has assigned to the capital market. It is a vital project in this round of comprehensive deepening of reforms of the capital market. In accordance with the guidelines for implementing the registration-based IPO system across the board and the requirement of regulatory transition, we will embrace ideas with an open mind when carrying out reforms and conducting review, take a combination of measures, and put forth effort to build a transparent, honest, quality registration-based IPO system so as to better support scientific and technological innovation and serve high-quality development.

The registration-based IPO system reform is, in nature, to give the right of choice to the market and to strengthen market constraint and rule-of-law constraint. Since the launch of the ChiNext reform and the pilot project of the registration-based IPO system, under the unified leadership of CSRC and the supervision and guidance of the Discipline Inspection and Supervision Office of CCDI and NCS at CSRC, we have highlighted the nature of giving the right of choice to the market. Adhering to information disclosure at the core, we have vigorously embraced ideas with an open mind when conducting review and worked to make the whole issuance and listing process standard, transparent and predictable. We have established a sunshine issuance and listing review mechanism, made phased achievements, and accumulated valuable experience for steadily advancing the reforms to implement the registration-based IPO system. Specifically,we have adhered to the principle of making public all the things that should be public. We have had a total of more than 700 receptions of enterprises whose IPOs are under review, and during the receptions we have earnestly responded to the concerns of enterprises and intermediaries, answering their questions and clarifying our requirements.We have improved the full-process openness mechanism.We have made public the review standards, procedures, content, process and results, and announced the review focuses to the market which involve about 200 common questions, making it easy for issuers and intermediaries to check in advance and prepare for applications.We have enriched the carriers to make the review public.We have originated theDevelopments of Review for the Issuance and Listing on ChiNext Under the Registration-based IPO System, developed the “SZSE Service” app and the information disclosure website, and established a review system that is electronic, intelligent and traceable throughout the process to ensure the review is steady and orderly. More than 420 companies have got listed on the ChiNext Board under the registration-based IPO system. The board has grown more inclusive and is characterized with innovation and growth which are typical in such key areas as advanced manufacturing, digital economy and green and low carbon development. ChiNext has become one of the fastest-growing emerging markets in the world.

After the registration-based IPO system is implemented across the board, our issuance review policies will be further refined, review mechanism and process further optimized, review responsibilities further specified, and market functions further improved. Therefore, the whole review process needs to be more open and transparent, the review quality and efficiency need to be constantly improved, and market supervision needs to be stricter and more effective so as to ensure the quality of market access. On the basis of fully learning from the experience in the ChiNext reform and the pilot project of the registration-based IPO system, SZSE has developed the “Three Transparents and Two Improvements” campaign based on the new situation of reform and development. The main content of the campaign is to deepen transparent review, transparent regulation and transparent service and its direct goal is to promote the improvement in review quality and efficiency and the improvement in the culture of integrity.

The “Three Transparents and Two Improvements” Action is an important step of SZSE to further strengthen the transparency building of the registration-based IPO system, an important measure to further optimize services and improve the style of work, and an important action to further establish an honest registration-based IPO system and build a culture of integrity. The action focuses on the review, supervision and service procedures, involves over 20 specific measures and mainly comprises three “transparency projects”. It is an interconnected organic whole.

The first transparency project is the Transparent Review Project, which aims to constantly improve the transparency and predictability of review.We will further break down the mystique of our review work, continue to deepen the requirement of making the entire review procedure as transparent as possible, and strengthen transparency before, during and after the review. We will refine the preliminary discussion policy, streamline the preliminary discussion procedures with issuers and intermediaries before application, and clarify communication and reply requirements. We will improve the quality and efficiency of communication during review by establishing a layered handling mechanism for difficult and complex issues. We will optimize the review timing standard and further specify review expectation. We will trim and refine focuses of review to make it easier for market entities to prepare in advance. We will intensify openness of review standards and classify and detail review guides. And we will make public typical cases and explain in detail the grounds of our review opinions.

The second transparency project is the Transparent Supervision Project, which is to ensure the quality of information disclosure.We will always exercise our powers under supervision of the public, fully make open rules of self-discipline regulation, improve the scientificity of the system of rules, and strengthen the transparency of regulatory rules. We will further include review inquiry into open market supervision and maintain consistency in review standards. We will optimize the standards and procedures of regulation and refine the handbook of daily regulatory business to enhance the standardability of regulation. We will intensify publicity of daily review and regulatory measures and periodically make public daily punishments and on-site supervision results to strengthen the public credibility and deterrence of regulation. Meanwhile, we will explore ways to further optimize the issuance and listing review mechanism and guide social resources to flow into key areas of national strategies, so as to better support the issuance by and listing of scientific and technological innovation enterprises and strategic emerging industry enterprises.

The third s transparency project is the Transparent Service Project, which aims to enhance the sense of gain and satisfaction of market participants.Transparency is conducive to market confidence. SZSE will launch the Sunshine Service Card and publish service hotline, complaints hotline, service items and commitments of integrity. We will establish a service feedback mechanism and call back users via telephone to ask them about the quality of supervision service. We will optimize market service standards, highlight the focuses of services, and improve service files. We will promote the “one network for all” services and unify the building of user platforms to realize interconnection of more business applications.

To ensure the implementation effect of the three transparency projects, promote quality improvement through transparency and foster integrity through transparency, SZSE will, in accordance with the requirements of the registration-based IPO system reform, continue to find gaps, improve our capabilities, and formulate specific work plans and refine supporting measures centering on the “two improvements”.

First, we will push for improvement in review quality and efficiency.We will prepare and implement the work plan for “improving review quality and efficiency”, put forth effort to increase the materiality and pertinency of review inquiry, and firmly guard the “access”. We will, with investor decision usefulness and effectiveness as the orientation, simplify and optimize the content of review inquiry, urge issuers and intermediaries to improve the quality of information disclosure and make information such as prospectuses more concise and more readable and investment decisions more effective. We will carry out targeted quality control with a focus on key items in the process of review and ensure high-quality review with high-quality supervision check-and-balance.

Second, we will promote improvement in the culture of integrity.We will continue to accept the supervisory inspection by the CPC CSRC Committee, actively accept the oversight by the Discipline Inspection and Supervision Office of the Central Commission for Discipline Inspection (CCDI) and the National Supervision Commission (NCS) at SZSE, formulate and put in place the work plan for “building an honest registration-based IPO system”, take strict and solid measures to enhance internal supervision and social supervision, and give play to the synergy of the multi-tiered supervision system. We will strengthen supervision of key positions and key personnel, stress the codes of conduct of “Three Do Nots” and “Eight Prohibitions”, periodically hold education, talks and warnings about integrity, strictly execute the registration and reporting policy, and refine the requirements of the “firewall” mechanism. We will intensify supervision of key areas and key links, deepen penetration of supervisory measures through the full process, periodically evaluate risk points, conduct targeted inspections, and impose serious punishments regarding problems found in the process. We will step up industry integrity supervision, intensify disciplinary action against the corruption, and take strict regulatory punitive measures against misconduct such as intervening in review, to form a deterrent force that stops misconduct immediately it is found. By strengthening institutional constraint, disciplinary constraint and cultural constraint, we will create an honest market ecosystem for the implementation of the registration-based IPO system across the board in which market entities can get things done without people connections.

Building a transparent, honest, quality registration-based IPO system is a systemic project. It requires all market participants to build synergy for reforms.

SZSE will, together with market participants, firmly carry out the decision and plans of the CPC Central Committee and the work requirements of the CPC CSRC Committee and continue to accept the strong supervision of the Discipline Inspection and Supervision Office of CCDI and NCS at SZSE. We will stay firmly on the development path of a modern capital market with Chinese characteristic, seek progress while maintaining stability, uphold fundamental principles and break new ground. We will support the efforts to boost self-reliance and strength in science and technology and promote high-quality economic development with solid reform achievements.