Lately, the Cyberspace Administration of China ("CAC") and the China Securities Regulatory Commission ("CSRC") have released the Guiding Opinions on Facilitating the Service of Capital Market for the Building of a Strong Cyber Power (the "Opinions").
The Opinions state that facilitating the service of capital market for building China into a cyber power shall conform to general requirements which are to foster the concerted development of the cybersecurity undertaking and the capital market, safeguard both the national cybersecurity and the financial security and promote joint regulation of cybersecurity authorities and securities regulators. Accordingly, the Opinions map out two tasks, namely enhancing policy guidance to promote the regularized development of cybersecurity enterprises and giving full play to the role of the capital market in advancing the development of cybersecurity enterprises at a faster pace. Moreover, the Opinions stress the need to support eligible cybersecurity enterprises to develop themselves into larger sizes and grow stronger by making use of the multi-level capital market, including the main board, the SME board, the ChiNext Board, the New Three Board, regional equity markets, and bond markets. Furthermore, cybersecurity enterprises are encouraged to use mergers and acquisitions to make improvements to the industry chain, introduce and absorb overseas advanced technologies, participate in the integration of global resources, and boost the capability of technological innovation and competence in the market. Additionally, efforts will be made to give full play to the active role of institutions such as sponsor institutions, financial advisors, law firms and accounting firms.