The Shanghai Stock Exchange (SSE) has started to solicit public opinions on the recently drafted and revised business rules for corporate bonds (including enterprise bonds) to better implement the decisions and arrangements of the CPC Central Committee and the State Council on institutional reform.

The main purpose of this rule drafting and revision is to align with the China Securities Regulatory Commission (CSRC)'s unified review process for corporate (enterprise) bond issuances, ensuring effective transition for self-regulatory measures at the institutional level. It includes adaptive revisions to the review on issuance and listing, underwriting of bond issuances, and ongoing self-regulatory rules. During the rule drafting and revision process, considerations were made to standardize and enhance transparency in rules, simplify and streamline execution, support market participants to constantly make good use of corporate (enterprise) bond financing tools in accordance with laws and regulations, better meet the financing needs of the real economy and industrial enterprises, and promote the high-quality development of the bond market.

This rule drafting and revision process involves a total of 5 business rules, namely the Rules of the Shanghai Stock Exchange for the Review of Issuance and Listing of Corporate Bonds (hereinafter referred to as the Review Rules), the Rules of the Shanghai Stock Exchange for the Issuance Underwriting of Corporate Bonds (hereinafter referred to as the Issuance Underwriting Rules), the Rules of the Shanghai Stock Exchange for the Listing of Corporate Bonds (hereinafter referred to as the Listing Rules), the Rules of the Shanghai Stock Exchange for the Listing of Non-publicly Issued Corporate Bonds (hereinafter referred to as the Listing Rules for Non-publicly Issued Corporate Bonds), and the Management Measures of the Shanghai Stock Exchange for the Suitability of Bond Market Investors (hereinafter referred to as the Suitability Measures).

The Review Rules unify the standards and processes for the review of corporate and enterprise bonds, strengthen the disclosure requirements focusing on debt repayment ability, optimize the review process, and establish an open, transparent, standardized, orderly, clean, and efficient system for the review of corporate (including enterprise) bonds. The Issuance Underwriting Rules further promote the standardization and transparency of corporate (including enterprise) bond issuance and underwriting business, clarify the requirements for various procedures such as price inquiry and book building, and solidify the responsibilities of underwriting institutions and issuers. The Listing Rules unify the standards and processes for the listing of corporate and enterprise bonds, strengthen the information disclosure requirements for ongoing investment projects financed by raised funds, optimize the regulatory arrangements for information disclosure, cancel the ex ante procedures for deferral and exemption of disclosure, and adjust the types of self-regulatory measures. The Listing Rules for Non-publicly Issued Corporate Bonds mainly aligns with the Listing Rules and make synchronous adjustments to the clauses related to information disclosure and self-regulatory measures. The Suitability Measures mainly revise the arrangements for the suitability of investors in enterprise bonds to align with those of corporate bonds.

After soliciting public opinions on these rules, the SSE will collect and evaluate the feedback and incorporate it into the rules, timely release relevant business rules, and establish a sound system for corporate (including enterprise) bonds. Going forward, the SSE will continue to properly make supporting preparations under the guidance of the CSRC, and assume the responsibilities of reviewing enterprise bond issuances in a steady and orderly manner.
 

Notice on Solicitation of Public Opinions on Five Business Rules for Corporate Bonds (including Enterprise Bonds)(CN)