SZSE drafted the Self-regulation Guidelines for Listed Companies No.16 - Sale of Stocks through Inquiry Transfer or Placement by Shareholders of the Companies Listed on the ChiNext Board (Exposure Draft) (hereinafter referred to as the “Guidelines”).This is aimed to guide the shareholders of ChiNext companies to transfer their shares in an orderly manner according to the law, introduce more professional institutional investors, better balance the demands of shareholders and the protection of the interests of small and medium-sized investors,thus maintaining the healthy and stable development of the ChiNext market. The Guidelines clarifies the mechanism arrangements for ChiNext company shareholders' share reduction via inquiry to specific institutional investors and placement to original shareholders having preemptive rights.It is now open to public comments.

The inquiry transfer system is of great significance in promoting the “relay” investment between early investors and long-term investors of listed companies, alleviating the pressure on the secondary market and boosting investor confidence.On the one hand, it is conducive to slowing down the liquidity risk that may be caused by the similar share decrease by shareholders directly through such means as bidding and block trading and reducing the impact on the secondary market. On the other hand, it is conducive to introducing professional institutional investors, optimizing the investor structure,and channeling more incremental funds and long-term funds into the market to form a value investment atmosphere and boost market confidence.

On the basis of the Rules Governing the Share Listing on ChiNext Board, the Guidelines clarifies the scope of application, participation requirements, implementation procedures, information disclosure, regulatory provisions etc. for the reduction of shares by inquiry transfer and placement. It further refines and regulates the behavior of shareholders to sell the shares issued before IPO via inquiry to specific institutional investors and placement to original shareholders, so as to maintain the openness, fairness and justice of the securities market and protect the legitimate rights and interests of investors.

Welcome all sectors of society to put forward valuable opinions on the Guidelines.By conscientiously implementing the spirit of the recent meetings of the Political Bureau of the CPC Central Committee and following the unified arrangements of China Securities Regulatory Commission, SZSE will focus on “activating the capital market and boosting investors' confidence” and adhere to the market-based and law-based principles to seriously study and fully absorb the reasonable opinions and suggestions from all parties in the market. We will further improve the basic system and optimize the rules system so as tolay a solid foundation for stimulating market momentum and improving the quality and efficiency of market operation.