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Shenzhen Stock Exchange: Strengthening The Construction Of The System Of Rules And Addressing The Weak Links In The System

To further implement strict regulation in an all-round way in accordance with laws, and improve the rule of laws safeguarding the reform and development of the capital market, recently Shenzhen Stock Exchange (“SZSE”) has sorted out the business rules and regulations for the 13th time, and released the 9th catalogue of abolished business rules and regulations, making an end to a total of 16 rules and regulations. After the abolishment, there are 171 business rules and regulations issued by SZSE currently in effect.

Business rules and regulations are the foundation of system upon which SZSE is able to perform its duty as a front-line regulator and enhance overall strict regulation in accordance with laws. In 2017, SZSE continued to improve and optimize its business rules and regulations to meet the needs of the market and regulation, and had formulated or revised 46 business rules and regulations in total, with 30 of them released. The efforts were focused on the following areas: first, strengthening Party leadership, improving SZSE’s internal governance and amending the articles of association and relevant work systems; second, pushing forward the reform of the fundamental systems for the capital market including the delisting system and the shareholding decreasing system, and making supplements to the front-line regulation system; third, launching a member-based regulation mode and enhancing client transaction behavior management and suitability management; fourth, improving the capacity to serve the real economy and encouraging innovative companies to issue convertible bonds and policy-based financial debts and conduct PPP assets securitization and etc.

An officer from SZSE emphasized that, the 19th CPC National Congress and the National Financial Work Congress have provide guidance for reform and development of the capital market and development of its rule of law in a new era. The Securities Exchange Management Measures (“Management Measures”) was revised in 2017 and put into force as of January 1, 2018, laying a solid foundation for SZSE to address the weak links of its regulation systems and to improve the rule of law in the capital market in a new era. Next, SZSE shall, in strict accordance with the Management Measures, duly perform its role as a regulator, focus on the key issues, address and improve the weak links, continue to enhance the construction of the system of rules and a multi-layer capital market with complete financing functions, solid systems, effective market regulation, where the legitimate rights and interest of investors are intact and fully safeguarded. 

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