July 30, the General Office of the Shanghai Municipal People's Government issued "on further playing the role of the capital market to promote the high-quality development of the city's science and technology enterprises of the implementation of the views", "the implementation of the views" clear, support for the listed companies green low-carbon development. Support eligible new energy, energy saving and environmental protection enterprises to go public, and guide the funds raised to invest in energy saving and emission reduction projects and green low-carbon transformation projects. Promote eligible green projects of listed companies to be included in the Shanghai Green Financial Services Platform, and support carbon-intensive listed companies to accelerate green and low-carbon transformation. Supporting the development of ESG-related indices, and developing index tracking, index-linked products and index derivatives.
The opinion is effective 7/30/2024.
Full text follows:
Implementation Opinions of the General Office of the Shanghai Municipal People's Government on Further Utilizing the Role of the Capital Market to Promote the High-Quality Development of Science and Innovation Enterprises in the City
Shanghai government office regulation [2024] No. 13
People's governments of all districts, municipal commissions, offices and bureaus, and all relevant units:
In order to deeply implement the spirit of the Central Financial Work Conference, implement the Several Opinions of the State Council on Strengthening Supervision and Preventing Risks to Promote the High-Quality Development of Capital Markets, support the high-quality development of scientific and technological innovations of the enterprises and the real economy in the city, and promote the upgrading of the "Light of the Pujiang River" action, the following implementation opinions are proposed on further playing the role of the capital market to promote the high-quality development of scientific and technological innovations in the city. We hereby put forward the following implementation opinions on further playing the role of capital market and promoting the high-quality development of science and technology enterprises in the city:
I. Main objectives
Taking national strategy-oriented and key core technology breakthrough enterprises as the main body, and focusing on the construction of Shanghai's modernized industrial system, we have cultivated a group of high-quality listed companies with science and technology as the core. Taking the construction of "Light of Pujiang" digital service platform as the core, we will build a service chain of listed companies in the whole life cycle by focusing on multi-level service mechanism, multi-product service content, and multi-subject service objects. With the goal of basically perfecting the investor protection system and more efficient resource allocation, the company will build a healthy and standardized capital market ecosystem by promoting the investment value of listed companies, the initial scale of patient capital, and the standardization of intermediary institutions, and forming a number of headline investment banks and investment institutions with core competitiveness and market influence. We strive to build Shanghai into an investment and financing agglomeration area leading the new quality productivity, a demonstration area for the high-quality development of listed companies, and a pioneer area for the healthy and standardized capital market ecology in five years, so as to better serve the overall situation of Chinese-style modernization.
II. Main tasks
(i) Incubating and nurturing quality enterprises
1. Optimize the incubation system for science and innovation enterprises. Support the operation of the Shanghai Science and Technology Innovation Financial Research Institute, and set up a professional service platform for investment and financing that gathers angel investors, projects for transforming scientific and technological achievements, and seed-stage and start-up scientific and technological enterprises. Optimize the credit risk compensation policy for small, medium and micro enterprises in science and technology, and continue to promote the pilot project of "pre-compensation" for intellectual property pledge loans. Encourage insurance institutions to develop standardized service solutions for small and medium-sized science and technology enterprises, and launch special science and technology insurance to provide protection for major national scientific research tasks. Optimize the supply of various types of science and innovation credit products, make good use of the Shanghai Policy Financing Guarantee Fund for Small, Medium and Micro Enterprises, and give full play to the role of enterprises as the main body of scientific and technological innovation.
2. Gathering equity investment factor resources. High-quality construction of equity investment gathering zones, clarification of service departments, and establishment of a fast-track mechanism for the establishment of equity investment funds. Make good use of the city's three leading industry investment mother funds, future industry funds and angel investment guidance funds, venture capital guidance funds and other government guidance funds, strengthen the linkage of government guidance funds at the municipal and district levels, and drive social capital to invest in early, small, and hard science and technology.
3. Cultivate and reserve enterprises to be listed. Relying on Shanghai's "(2+2)+(3+6)+(4+5)" modernized industrial system, we will cultivate high-quality potential listed companies, and guide them to continue to standardize their business operations, management and supervision mechanisms. Focusing on key industries such as integrated circuits, artificial intelligence, biomedicine, as well as new tracks and future industries, it has strengthened financial support and guarantee services for enterprises. Promote regional equity markets to focus on advantageous industrial clusters, explore preferred shares (rights) and financing tools combining intellectual property rights with stock options and convertible bonds, and support qualified enterprises to list on the "Specialized, Specialized and New" board.
(ii) Promotion of restructuring and listing
4. Guiding enterprises to standardize shareholding reform. Encourage district governments to give financial support to small and medium-sized enterprises according to their different stages of restructuring and listing, and the municipal finance will support them through special transfer payments. Encourage the districts to establish a system of special supervisors for listed companies, and improve the regularized visiting mechanism for enterprises to be listed and listed companies under their jurisdiction. Support districts to set up capital market service bases to provide "one-stop" services for enterprises under their jurisdiction to connect to the capital market.
5. Make financing incentive arrangements. Encourage districts, parks and relevant industry associations to hold investment and financing docking sessions, assist enterprises in introducing strategic investment institutions and make equity incentive arrangements. Support commercial banks to enrich products such as listing loans, employee stock ownership plans for science and technology enterprises and equity incentive loans. Establish incentive and constraint mechanisms for independent innovation and transformation of scientific and technological achievements by state-owned science and technology enterprises. Implement measures such as income tax incentives for high-tech enterprises, additional deduction for R&D expenses, tax deferral for equity incentives, and selective tax incentives for investment in shares of technological achievements.
6. Improve the quality of counseling for issuance and listing. Improve the coordination mechanism for the supervision and acceptance of the issuance and listing of enterprises in the city. Guiding enterprises to choose suitable listing boards, prioritizing support for the listing of "hard science and technology" enterprises that have made breakthroughs in key core technologies in the fields of new industries, new forms of business and new technologies, and supporting enterprises in need to go overseas for listing. Municipal industry authorities will cooperate with the evaluation of the science and innovation attributes of enterprises to be listed on the Science and Innovation Board. Cooperate with securities regulators to conduct on-site inspections of enterprises and intermediaries to be listed, so as to effectively improve the quality of listed companies.
7. Strengthening the precise services of local governments. Improve the mechanism of replacing the proof of having or not having a record of violation of the law with a dedicated credit report for business entities, and increase the application in scenarios such as listing, listing, refinancing, merger and acquisition, reorganization, and issuance of bonds. Municipal and district departments will provide convenient services for enterprises to be listed in accordance with the law to handle changes in the nature of land, changes in real estate ownership, asset transfer, tax concessions, and the management of state-owned shareholders' logos, etc., standardize the processing of certificates and transfer of equity and other businesses, and provide priority review and recommendation of patents for enterprises to be listed and listed companies, and speedy pre-trial and other services.
(iii) Supporting high-quality development of listed companies
8. Promoting the sustainable development of listed companies. It has implemented the special action of "improving quality, increasing efficiency and emphasizing returns". Encourage listed companies to carry out market value management in a compliant manner, strengthen the management of cash dividends, improve the level of information disclosure, improve corporate governance and internal control, and strictly prevent financial counterfeiting, capital misappropriation and other illegal behaviors. The financial authenticity of listed companies will be taken as an important basis for supporting excellence and limiting inferiority. The performance level of market value management of state-controlled listed companies has been incorporated into the tenure appraisal index system, and cash dividends have been positively guided.
9. Encourage industrial mergers and acquisitions. Encourage leading listed companies to base themselves on their main business, and increase their efforts to integrate the resources of industry chain-related enterprises through absorption and merger, holding or equity participation. Encourage financial institutions to provide financial products such as M&A loans, M&A insurance and M&A bonds for M&A reorganization and subsequent operations. Promote the innovation pilot of M&A loans for non-residents, and study the innovation pilot of equity participation M&A loans for science and technology-based enterprises. Encourage listed companies to merge and acquire high-quality assets abroad, and facilitate and support the exit of funds and cross-border share exchanges.
10. Create a highland for the gathering of merger and acquisition resources. We support the establishment of a series of M&A funds covering key areas and undertaking key functions, and those that meet the conditions will be included in the establishment of a fast track. Supporting the "chain master" enterprises in the industrial chain to carry out corporate venture capital (CVC), and carrying out mergers and acquisitions and reorganization around the key links of the industrial chain. Supporting the National Social Security Fund, insurance funds, bank wealth management and other long-term funds to deepen their investment layout in key industries in Shanghai. Support districts or parks with strong professional management capability, strong policy support and high factor concentration to create M&A clusters and build "one-stop" M&A public service platforms.
11. Supporting the green and low-carbon development of listed companies. Support the listing of qualified new energy, energy-saving and environmental protection enterprises, and guide the investment of funds raised in energy-saving and emission reduction projects and green and low-carbon transformation projects. Promote the inclusion of green projects of eligible listed companies in the Shanghai Green Financial Services Platform, and support carbon-intensive listed companies to accelerate green and low-carbon transformation. Supporting the development of ESG-related indices, and developing index tracking, index-linked products and index derivatives.
12. Supporting listed companies to expand their business globally. Encourage listed companies to make good use of the "Banks and Enterprises Foreign Exchange Trading Service Platform" to improve foreign exchange risk management. Encourage banks to expand the "first account" for foreign exchange hedging for listed companies, and provide relevant fee concessions. Supporting banks to optimize cross-border RMB and foreign exchange business processes and implement differentiated services for eligible listed companies. Encourage listed companies with global operations to set up capital pools in Shanghai. Promote insurance companies to strengthen insurance support for listed companies' overseas projects and implement differentiated rates.
13. Strengthening risk management for listed companies. Explore the establishment of a centralized regulatory collaboration mechanism, strengthen information sharing with securities regulators, and form a collaborative regulatory pattern of joint control and organic integration. It will study and strengthen the construction of the city's financial risk monitoring and early-warning platform, include listed companies in the scope of monitoring, and improve the risk-alerting mechanism. Encourage the comprehensive use of merger and reorganization, judicial reorganization, bankruptcy and liquidation and other measures to deal with the risks of listed companies in a prudent manner. Improve the city's risk disposal mechanism for delisting, and do a proper job of clearing out problematic listed companies.
(iv) Building a public service platform for the capital market
14. Improving special coordination mechanisms. The city's financial management department, together with the city's development and reform, economic information technology, science and technology, finance, state-owned assets and other departments and securities regulators in Shanghai to improve the special coordination mechanism. Regularly track and analyze the policy guidance and market dynamics of the city's capital market. Establishing a special service package system for listed companies, and assigning the problems collected during visits to listed companies to relevant departments for study and solution in a timely manner.
15. Building a capital market service platform. Launched the "Light of Pujiang" digital service platform, providing an "integrated" information sharing system for municipal industry authorities and districts, and a "one-stop" digital service toolbox for enterprises and intermediaries. Provide enterprises and intermediaries with a "one-stop" digital service toolbox. Supporting municipal industry departments and districts to include high-quality enterprises that meet the city's industrial development orientation, have high development potential and are highly recognized by the market in the "Light of Pujiang" digital service platform, forming a reserve resource for listing by industry, by level and by echelon.
16. Strengthening the capital market service base in the Yangtze River Delta. The Yangtze River Delta Capital Market Service Base (hereinafter referred to as "the Base") will be upgraded to support stock exchanges, equity investment institutions, commercial banks, securities firms and intermediaries to set up service points or provide special services at the Base, so as to build the Yangtze River Delta Science and Technology Innovation Financial Service Center. The Base will also play a role in the Yangtze River Delta integration network, and provide coaching and training, roadshow promotion and financing docking services for science and innovation enterprises in the Yangtze River Delta.
(v) Building a healthy capital market ecosystem
17. Deepening the reform of the capital market system. In line with the deepening of the reform of the Science and Innovation Board (SIB) system, promote the deepening of the registration system for stock issuance, and actively play the role of the SIB as a "testing ground". Adapting to the characteristics of the development of new productive forces, support the listing of high-quality unprofitable science and technology enterprises with key core technologies, high market potential and outstanding science and innovation attributes on the Science and Technology Innovation Board (STB). Appropriately increase the inclusiveness of M&A and reorganization valuation of companies listed on the STEM Board. Improve the listing conditions in line with highlighting the "large-cap blue-chip" characteristics of the Shanghai Main Board.
18. Give full play to the resource allocation function of the over-the-counter market. The regional equity market will build high-quality "specialized, special and new" panels, deepen the pilot transfer of private equity and venture capital shares and the pilot comprehensive service of equity subscription, and promote the pilot application system and business innovation. Supporting regional equity markets to connect their custody registration, transfer and trading, information disclosure, etc., with local government data, improve enterprise digital files, and do a good job of connecting with stock exchanges and the National Stock Exchange in terms of standardized counseling.
19. Supporting intermediary organizations to become better and stronger. Supervise the city's securities companies, law firms, accounting firms and other intermediaries to enhance their professional services and industry research capabilities, give full play to the role of "gatekeeper", and perform their duties and responsibilities in accordance with the law. Encourage securities companies to strengthen the foundation of compliance and risk control, enhance the ability of project screening, valuation and pricing, sponsorship and underwriting, and strengthen the construction of professional teams in niche areas. Supporting intermediaries to fully utilize artificial intelligence, blockchain, big data, privacy computing and other technologies to strengthen technological empowerment and improve operational efficiency and risk management.
20. Cultivate a long-term investment ecology. The Shanghai Asset Management Association will play a role in establishing a synergistic mechanism for the benign development of the asset management industry and the capital market. Encourage asset management institutions to adhere to the investor return orientation, enrich the variety of fixed-income products, and increase the issuance of equity products and exchange-traded open-ended index funds (ETFs). Do a good job of supporting services for capital market investment of state-level funds, insurance, bank wealth management, corporate annuities and pensions. Support asset management institutions to develop intelligent investment research and intelligent investment technology. Support qualified capital management institutions, securities companies and other companies to participate in the declaration of capital market financial technology innovation pilot.
(vi) Continuous optimization of the capital market environment
21. Gathering and cultivating a pool of talent. Encourage financial institutions, industry associations and professional training organizations to establish regular training mechanisms. Improve the evaluation and incentive mechanism for talents, and support the declaration of talents who have achieved outstanding performance in the construction of the capital market to the city's Oriental Talent and other talent programs. Strengthen international exchanges and cooperation, and provide convenient and guaranteed services for holders of overseas vocational qualification certificates of recognized list projects.
22. Create a favorable public opinion environment. Establish a joint departmental collaboration mechanism to assist securities regulators to do a good job of positive publicity and public opinion guidance. Increase communication with the media, and guide the media to report responsibly, professionally, objectively and factually. Gathering consensus and utilizing the roles of the industry and academia in advising and making suggestions. Strengthen the monitoring of public opinion and crack down on malicious public opinion interfering with auditing behavior in accordance with the law.
23. Building a model capital market area based on the rule of law and integrity. It will improve the city's mechanism for the diversified settlement of securities and futures disputes and strengthen the rule of law in the capital market. It will give full play to the role of the Shanghai Financial Court, improve the specialized trial mechanism for financial disputes, and strengthen the construction of the case testing mechanism for the financial market. Encouraging the city's arbitration institutions to provide high-quality, efficient and convenient commercial dispute resolution services, and supporting the launch of arbitration pilot programs on the Science and Innovation Board. Establishing a relief mechanism for malicious intellectual property lawsuits.
24. Protect the legitimate rights and interests of investors. Continuously strengthen investor education and services, support relevant institutions and industry associations to carry out specialized publicity and training, and improve investors' ability to screen information and identify risks. Give full play to the role of CSI Small and Medium-sized Investor Service Center in the exercise of stock rights, rights litigation, dispute mediation, etc., and perform the duties of representative in special representative litigation in accordance with the law. Explore the establishment of a compensation mechanism for investor interest relief.
III. Organizational safeguards
Play the role of the capital market to support Shanghai to accelerate the construction of the "five centers" collaborative working mechanism to coordinate the promotion of major issues, and jointly promote the high-quality development of the capital market. Improve the working mechanism of the "Light of Pujiang" action, gather the joint efforts of the city and districts, and coordinate and solve specific problems in the process of docking enterprises to the capital market. The districts will improve the working mechanism and implement relevant policies based on their own location advantages and industrial foundation.
This opinion is effective July 30, 2024, as of that date.
General Office of Shanghai Municipal People's Government
July 30, 2024
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