On May 20, the China Securities Regulatory Commission issued the “Notice on Further Exploiting the Functions of the Capital Market to Support the Accelerated Recovery and Development of Severely Affected Areas and Industries”, proposing 23 policy measures. The “Notice” focuses on four aspects: increasing direct financing support, implementing extension and extension policies, optimizing regulatory work arrangements, and giving play to the role of industry institutions.M&Areorganizationcorporate bonds, assetssecuritiesChemical products and other aspects to increase policy support.
The “Notice” mainly targets areas and industries severely affected by the epidemic, including Shanghai, Jilin and other places, as well as industries such as catering, retail, tourism, civil aviation, and road, water, and rail transportation. Subsequent adjustments will be made based on changes in the situation.
Experts said that the regulatory authorities have taken multiple measures to increase support for areas and industries severely affected by the epidemic, which will help better coordinate epidemic prevention and control and economic development, help market players overcome difficulties, and contribute capital market forces to stable growth. . This move is to thoroughly implement the decisions and arrangements made by the Party Central Committee and the State Council on coordinating epidemic prevention and control and economic development. These measures have been fully investigated and researched in the early stage, and they are implemented quickly, with strong operability, and market players have a strong sense of gain.
Immediately reported and reviewed immediately
The “Notice” clarifies that effective measures should be taken to increase direct financing support. Among them, before the end of 2022, the refinancing applications of listed companies in areas and industries seriously affected by the epidemic will be connected with special personnel, and will be reviewed immediately, and issued immediately after review. For companies in areas and industries severely affected by the epidemic that apply for listing on the Beijing Stock Exchange or the National Equities Exchange and Quotations System, special personnel will be connected, and the report will be reviewed immediately, and the review will be issued immediately. Listed companies in areas and industries severely affected by the epidemic apply the “small amount quick” review mechanism for applications for issuance of shares to purchase assets, and the requirement for cumulative calculation within the last 12 months is no longer applicable when calculating the transaction amount. Where shares are issued to purchase assets at the same time as supporting funds are raised, the restrictions on the proportion of raising supporting funds for supplementing working capital and repaying debts shall be relaxed.
The “Notice” proposes to speed up the public offeringfundThe review progress of products, especially equity funds, anti-epidemic theme funds and other products. Provide support in accordance with laws and regulations for the administrative licensing of related fund products in areas and industries severely affected by the epidemic.
ChinasecuritiesThe reporter learned from people close to the regulatory authorities that for those who are seriously affected by the epidemic and cannot submit relevant signature and seal documents for the administrative license of fund products in a timely manner, the fund manager may first explain and then supplement depending on the situation, and comply with laws and regulations. Accelerate the progress of product registration review of fund managers in areas severely affected by the epidemic, pass on the supervision temperature, and ensure the normal business development of relevant institutions.
Implementing the extension and extension policy to optimize the supervision work arrangement
The “Notice” proposes to implement the extension and extension policy to reflect the flexibility of supervision. Among them, the time limit for responding to feedback and review inquiries from issuers in areas and industries severely affected by the epidemic can be extended by 3 months, and the time limit for replying to notification letters can be extended by 1 month.Apply for the issuance of corporate bonds and assets for companies in areas and industries severely affected by the epidemicsecuritiesIf the product is converted into a product, the calculation of the time limit for replying to the feedback in the review stage and the time limit for suspension will be suspended for 3 months.
The “Notice” clarifies that the supervision work arrangement should be optimized and the supervision temperature should be conveyed.Among them, for companies that publicly issue securities and go public in areas and industries seriously affected by the epidemic, the listing year in 2022 will be affected by the epidemic.performanceIf there is a significant decline, appropriate regulatory tolerance will be given to issuers and relevant sponsors.
Market participants believe that the sharp decline in performance of some companies due to the severe impact of the epidemic is a force majeure factor. Appropriate supervision and tolerance of relevant sponsors and issuers in accordance with the law will help relieve their worries, stimulate the enthusiasm of sponsors to serve enterprises, and help enterprises. Get over it as soon as possible.
The “Notice” proposes that for newly established securities and fund institutions in areas seriously affected by the epidemic, on-site inspections can be carried out through online video, and follow-up supplementary inspections can be used to support companies in obtaining business licenses as soon as possible after meeting the opening conditions. “Adjusting the on-site inspection of newly established securities and fund institutions in areas seriously affected by the epidemic from offline to online, supplemented by targeted supplementary inspections, is conducive to realizing early opening under the premise of ensuring the inspection effect and reducing the impact of the epidemic on institutions. The impact of business operations.” market participants believe.
In addition, for securities, fund and futures business institutions in areas severely affected by the epidemic, on the premise of maintaining effective supervision, more flexible regulatory arrangements will be implemented, including allowing delays in submitting relevant statements and implementing electronic license filings. After taking effective measures to prevent risks and conflicts of interest and reporting to the CSRC, flexible arrangements are allowed in terms of staffing, isolation checks and balances, and process control.
A reporter from China Securities Journal learned from people close to the regulatory authorities that for areas with severe epidemics, securities fund operating institutions can take effective measures to prevent risks and conflicts of interest, and report to the CSRC in advance. Appropriate and flexible arrangements for isolation, checks and balances, process control, etc.Under the premise of maintaining effective supervision, securities companies andfund companyPostponement of relevant reports. From the perspective of industry insiders, the implementation of flexible policies reflects the temperature of supervision, which is conducive to the consolidation of epidemic prevention and control responsibilities by industry institutions, and at the same time, the normal and stable operation of industry institutions.
Play the role of industry bodies
The “Notice” proposes to give full play to the role of industry institutions to help fight the epidemic and resume work and production. Among them, securities companies are encouraged to actively play the role of financing intermediaries, and support areas and industries severely affected by the epidemic to carry out equity financing and bond financing.Guide securities companies withEquity pledgeFor customers who have difficulty in repayment due, negotiate to extend the period for 3 to 6 months.For those who are quarantined or receive medical treatment due to epidemic prevention and controlmargin financingClients, try to minimize forced liquidation and handle flexibly.
A person close to the regulatory authorities said that for entities that are unable to operate normally and have liquidity difficulties due to the impact of the epidemic, securities companies may, depending on the situation, place their stocks on them.pledgeRenew for 3 to 6 months, or suspend default disposal by supplementing collateral.For those who cannot be dealt with in a timely manner due to isolation or treatmentmargin financingInvestors with problems, support securities companies to appropriately extend the time for supplementary collateral, and suspend the implementation of default disposal. Through the implementation of flexible policies, the liquidity difficulties of financing entities will be alleviated, and the development of the real economy will be better supported.
The “Notice” clarifies that public fund management companies are supported to practice the concepts of long-term investment, value investment and responsible investment, actively use their own funds to subscribe for their fund products, actively play the role of professional investors, and guide more socialCash flowTo anti-epidemic related companies. Securities companies are encouraged to set up private equity asset management products, and private equity fund subsidiaries to set up private equity fund products in accordance with the principles of marketization and the rule of law, so as to meet the financing needs of relevant enterprises and reduce financing costs.
“Private equity investment fund management subsidiaries of securities companies that meet the requirements of regulated rectification participate in resolving the liquidity risks of private listed companies, and can set up specialized secondary private equity investment fund management subsidiaries. The enthusiasm of fund products provides strong support for companies seriously affected by the epidemic to obtain financing and reduce financing costs.” Market participants pointed out.
(Article source: China Securities Journal · China Securities Network)