The Shanghai Stock Exchange ("SSE") and the Shenzhen Stock Exchange ("SZSE") have recently issued their respective Implementing Measures for the Listing and Trading of Stocks or Depository Receipts Offered by Pilot Innovative Enterprises and a series of relevant business rules, all of which enter into force immediately from the issue date.
In particular, the Implementing Measures of the SZSE for the Listing and Trading of Stocks or Depository Receipts Offered by Pilot Innovative Enterprises (the "Measures") set out specific institutional arrangements for different matters, including the listing, trading and information disclosure, with respect to the stocks or depository receipts offered by innovation-oriented enterprises under the pilot program. The Measures persist in the principle of combining the strict and law-based regulation and the prudent and differentiated regulation, taking into account of both international practices and China's actual situations, and attaching equal importance to the strengthened information disclosure and the better protection of investors' legitimate rights and interest. To deal with likely certain business risks facing such pilot innovative enterprises, and special arrangements of red-chip enterprises, such as the difference in voting rights and the protocol control framework, the Measures intensify the innovative enterprises' information disclosure obligations and the risk warning, enabling investor protection requirements to cover all business processes, ranging from listing, trading and continuous information disclosure.