The Shanghai Stock Exchange ("SSE") has recently issued and put in place the revised Rules on Listing of Corporate Bonds (Revised in 2018) and the revised Rules on Listing and Transfer of Non-publicly Offered Corporate Bonds (Revised in 2018) (Collectively as the "Rules"), and meanwhile, the Shenzhen Stock Exchange ("SZSE") has released its equivalent rules.
The Rules introduce improvements to the following aspects in particular. The first is intensifying the frontline regulation and practically enhancing effects and efficiency of regulation. The second is standardizing procedures for preliminary bond examination and subjecting bonds to regulation once listing applications have been filed. The third is optimizing arrangements for information disclosure and for management in the bond duration to better protect rights and interests of investors. The fourth is regulating the suspension and resumption of bond trading to ensure the stable operation of the bond market. The fifth is effectively working on the connection and coordination and improving the exchange's framework of self-regulation rules for bond business. Among others, the Rules set up a particular chapter to highlight regulatory requirements for the preliminary examination of listing applications and for the identification of whether all listing requirements are fulfilled, provide further clarity on the authority for the preliminary bond examination, what application documents are requested, the authority for self-discipline regulation, the reporting of post-duration matters, etc., and implement the pre-examination requirement that bonds will be subject to regulation once listing applications are submitted.