Shanghai and Shenzhen Stock Exchange releases stock code management guidelines, experts say that new regulations maintain market fairness and openness

On the evening of September 17, the Shanghai and Shenzhen Stock Exchanges respectively issued the stock code management guidelines, which will be implemented on October 1, 2021. After the implementation, the prospectus or prospectus is published and the issuance is initiated, the regulations shall apply.

According to reports, the stock code management guidelines follow the basic principles of uniform rules, openness, transparency, flexibility, and no exceptions. It clarifies that issuers can use lottery and number selection methods to determine stock codes. In the case of lottery selection, the Shanghai and Shenzhen Stock Exchange’s issuance and underwriting business system will randomly select 10 alternative codes from the top 100 unused codes (in ascending order) from the stock code segment corresponding to the issuer’s proposed listing. Choose one of them as the stock code. The lottery code interval will be changed and supplemented according to the stock code value from small to large, to ensure that the lottery code interval is always 100, to ensure that the lottery number selection is fair and fair.

The Shanghai and Shenzhen Stock Exchanges will subsequently simultaneously revise the guidelines for initial public offerings and listings on the Main Board, the Science and Technology Innovation Board and the Growth Enterprise Market. Both exchanges stated that under the overall guidance of the China Securities Regulatory Commission, they will improve the relevant rules of the issuance and listing business, optimize the issuance and underwriting business system, and continuously improve the quality and efficiency of service work.

Chen Li, chief economist and director of the Institute of Chuancai Securities, said that the new code regulation will help unify standards and ensure that listed companies queue up in an orderly manner. It is an important guarantee for maintaining the fairness and openness of the market. Fu Lichun, an economist and founding partner of Yuntai Capital, also said: “This is a manifestation of the perfect rules. In terms of stock code management, it is now more complete, systematic, transparent, concise, and more practical. Regardless of the regulation, It is still more convenient and efficient for enterprises.”

(Source: Economic Reference Network)

Article source: Economic Reference Network

Editor in charge: DF551

Original title: Shanghai and Shenzhen Stock Exchange issued stock code management guidelines, experts said that the new regulations maintain market fairness and openness