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State Council approves pilot issue of shares, depositary receipts

Updated: Mar 30,2018 8:34 PM

The State Council approved a document, submitted by China Securities Regulatory Commission (CSRC), on the pilot schemes of innovative enterprises issuing stocks or depositary receipts in China.

Several opinions are provided in the document to enhance capital market support for the innovation-driven strategy. The trials of innovative enterprises issuing stocks or depositary receipts in China should adhere to a market-oriented principle and the rule of law while drawing upon international experiences, the document said.

According to the document, the trials should follow four principles: serving national strategies, abiding by laws and regulations, making steady progress, and preventing and controlling risks.

Pilot enterprises should be innovative enterprises reaching a certain scale. They should comply with national strategies and possess core technologies with high market recognition. They should fall into categories of high-tech industries and strategic emerging industries, such as internet, big data, cloud computing and artificial intelligence. Specific standards of pilot enterprises are decided by the CSRC.

The shares and depositary receipts issued by pilot enterprises in China should be traded in domestic stock exchanges, and registered, deposited and cleared in the China Securities Depository and Clearing Co Ltd.

Information disclosure obligators should release real information in a timely, accurate, complete and fair manner, the document stated.

Illegal acts of pilot enterprises and other related market entities should bear legal liabilities according to laws and regulations such as securities law.