Circular of the Supreme People's Court on Issuing the Several Opinions on Providing Judicial Safeguards for the Setting-up of the SSE STAR Market and the Piloting of Registration-based Initial Public Offering Reform
Circular of the Supreme People's Court on Issuing the Several Opinions on Providing Judicial Safeguards for the Setting-up of the SSE STAR Market and the Piloting of Registration-based Initial Public Offering Reform
Circular of the Supreme People's Court on Issuing the Several Opinions on Providing Judicial Safeguards for the Setting-up of the SSE STAR Market and the Piloting of Registration-based Initial Public Offering Reform
Fa Fa [2019] No. 17
June 20, 2019
Higher People's Courts of all provinces, autonomous regions and municipalities directly under the Central Government, the Military Court of the People's Liberation Army and the Production and Construction Corps Branch of the Higher People's Court of Xinjiang Uygur Autonomous Region,
The Several Opinions on Providing Judicial Safeguards for the Setting-up of the SSE STAR Market and the Piloting of Registration-based Initial Public Offering Reform are hereby issued to you for your conscientious compliance and implementation.
Several Opinions of the Supreme People's Court on Providing Judicial Safeguards for the Setting-up of the SSE STAR Market and the Piloting of Registration-based Initial Public Offering Reform
The setting-up of the Science and Technology Innovation Board (hereinafter referred to as the "STAR Market" or the "SSE STAR Market") and the piloting of a registration-based initial public offering ((hereinafter referred to as "IPO") mechanism on the Shanghai Stock Exchange (hereinafter referred to as the "SSE") is a significant initiative of the Central Government to implement the innovation-driven development strategy and promote high-quality development, while also an important arrangement for deepening capital market reform. In order to give full play to the role of people's courts in exerting the function of trials, jointly impel the coordinated efforts in the reform of such basic systems for offering, listing, information disclosure, trading and delisting on the capital market, maintain an open, fair and just capital market order, and protect the legitimate rights and interests of investors, the following opinions are hereby put forward on issues concerning the proper trial of cases in relation to the SSE STAR Market by people's courts during the piloting of registration-based IPO reform.
I. Raise Awareness and Enhance the Consciousness and Initiative to Provide Judicial Safeguards for the Setting-up of the SSE STAR Market and the Piloting of Registration-based IPO Reform
1. Fully understand the significance of the setting-up of the SSE STAR Market and the piloting of a registration-based IPO mechanism. At the opening ceremony of the first China International Import Expo, General Secretary Xi Jinping announced the setting-up of the STAR Market and the piloting of a registration-based IPO mechanism on the SSE, which fully reflects the great importance attached by and the ardent hope of the CPC Central Committee with Comrade Xi Jinping at its core for capital market reform and development. It was put forward at the Central Economic Work Conference that the capital market, the change of which will be far-reaching and plays a crucial role in financial operation, so that it is required to create a standardized, transparent, open, dynamic and resilient capital market through deepening the reform. Starting from the setting-up of the SSE STAR Market and the steady piloting of a registration-based stock offering mechanism is not only an important manifestation to deepen the structural reform of the financial supply side and refine the basic systems for the capital market, but also conducive to better exerting the supporting the function of the capital market in improving the innovation of key technologies and the competitiveness of the real economy, and to better serve high-quality development. People's courts at all levels shall adhere to taking Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era as the guide, conscientiously implement the spirit of a series of important instructions and written instructions of General Secretary Xi Jinping on the capital market, properly cope with new situations and new issues arising in disputes involving the SSE STAR Market, and regard protecting the legitimate rights and interests of investors and forestalling and defusing financial risks as a fundamental task of securities trials, thus creating a good judicial environment for accelerating the formation of a multi-level capital market system with complete financing functions, solid basic systems, effective market regulation, and efficient protection of investors' legitimate rights and interests.
2. Accurately grasp the positioning of the SSE STAR Market and the arrangement for piloting of the registration-based IPO mechanism. The SSE STAR Market is an incremental reform of the capital market while also a "test field" for the reform and innovation of basic systems for the capital market. The SSE STAR Market mainly serves science and technology innovation (hereinafter referred to as "sci-tech innovation") enterprises that conform to national strategy, break through key core technologies and enjoy high market recognition, of which the offering and listing conditions are more inclusive, with no compulsory requirement for the profitability of enterprises prior to listing, but allowing the listing of enterprises with different rights in the same stocks and of red chip enterprises that meet the requirements on innovation pilot programs, and it implements more market-oriented systems for offering and underwriting, trading, mergers & acquisitions, restructuring and delisting, etc. Upon the authorization of the Standing Committee of the National People's Congress, relevant provisions of the Securities Law of the People's Republic of China on the approval system for public offering of stocks shall apply after adjustment in the process of registration-based stock offering reform. This piloting of a registration-based IPO mechanism is generally divided into two parts, respectively, auditing by the SSE and registration at the China Securities Regulatory Commission (hereinafter referred to as the "CSRC"). The CSRC shall supervise the SSE's audit work and establish a sound stock offering and listing system with information disclosure as the center.
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Fa Fa [2019] No. 17
June 20, 2019
Higher People's Courts of all provinces, autonomous regions and municipalities directly under the Central Government, the Military Court of the People's Liberation Army and the Production and Construction Corps Branch of the Higher People's Court of Xinjiang Uygur Autonomous Region,
The Several Opinions on Providing Judicial Safeguards for the Setting-up of the SSE STAR Market and the Piloting of Registration-based Initial Public Offering Reform are hereby issued to you for your conscientious compliance and implementation.
Several Opinions of the Supreme People's Court on Providing Judicial Safeguards for the Setting-up of the SSE STAR Market and the Piloting of Registration-based Initial Public Offering Reform
The setting-up of the Science and Technology Innovation Board (hereinafter referred to as the "STAR Market" or the "SSE STAR Market") and the piloting of a registration-based initial public offering ((hereinafter referred to as "IPO") mechanism on the Shanghai Stock Exchange (hereinafter referred to as the "SSE") is a significant initiative of the Central Government to implement the innovation-driven development strategy and promote high-quality development, while also an important arrangement for deepening capital market reform. In order to give full play to the role of people's courts in exerting the function of trials, jointly impel the coordinated efforts in the reform of such basic systems for offering, listing, information disclosure, trading and delisting on the capital market, maintain an open, fair and just capital market order, and protect the legitimate rights and interests of investors, the following opinions are hereby put forward on issues concerning the proper trial of cases in relation to the SSE STAR Market by people's courts during the piloting of registration-based IPO reform.
I. Raise Awareness and Enhance the Consciousness and Initiative to Provide Judicial Safeguards for the Setting-up of the SSE STAR Market and the Piloting of Registration-based IPO Reform
1. Fully understand the significance of the setting-up of the SSE STAR Market and the piloting of a registration-based IPO mechanism. At the opening ceremony of the first China International Import Expo, General Secretary Xi Jinping announced the setting-up of the STAR Market and the piloting of a registration-based IPO mechanism on the SSE, which fully reflects the great importance attached by and the ardent hope of the CPC Central Committee with Comrade Xi Jinping at its core for capital market reform and development. It was put forward at the Central Economic Work Conference that the capital market, the change of which will be far-reaching and plays a crucial role in financial operation, so that it is required to create a standardized, transparent, open, dynamic and resilient capital market through deepening the reform. Starting from the setting-up of the SSE STAR Market and the steady piloting of a registration-based stock offering mechanism is not only an important manifestation to deepen the structural reform of the financial supply side and refine the basic systems for the capital market, but also conducive to better exerting the supporting the function of the capital market in improving the innovation of key technologies and the competitiveness of the real economy, and to better serve high-quality development. People's courts at all levels shall adhere to taking Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era as the guide, conscientiously implement the spirit of a series of important instructions and written instructions of General Secretary Xi Jinping on the capital market, properly cope with new situations and new issues arising in disputes involving the SSE STAR Market, and regard protecting the legitimate rights and interests of investors and forestalling and defusing financial risks as a fundamental task of securities trials, thus creating a good judicial environment for accelerating the formation of a multi-level capital market system with complete financing functions, solid basic systems, effective market regulation, and efficient protection of investors' legitimate rights and interests.
2. Accurately grasp the positioning of the SSE STAR Market and the arrangement for piloting of the registration-based IPO mechanism. The SSE STAR Market is an incremental reform of the capital market while also a "test field" for the reform and innovation of basic systems for the capital market. The SSE STAR Market mainly serves science and technology innovation (hereinafter referred to as "sci-tech innovation") enterprises that conform to national strategy, break through key core technologies and enjoy high market recognition, of which the offering and listing conditions are more inclusive, with no compulsory requirement for the profitability of enterprises prior to listing, but allowing the listing of enterprises with different rights in the same stocks and of red chip enterprises that meet the requirements on innovation pilot programs, and it implements more market-oriented systems for offering and underwriting, trading, mergers & acquisitions, restructuring and delisting, etc. Upon the authorization of the Standing Committee of the National People's Congress, relevant provisions of the Securities Law of the People's Republic of China on the approval system for public offering of stocks shall apply after adjustment in the process of registration-based stock offering reform. This piloting of a registration-based IPO mechanism is generally divided into two parts, respectively, auditing by the SSE and registration at the China Securities Regulatory Commission (hereinafter referred to as the "CSRC"). The CSRC shall supervise the SSE's audit work and establish a sound stock offering and listing system with information disclosure as the center.
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