The new regulations on filing provide protection for the return of Chinese concept stocks to overseas listing!
作者：管理员 发布于：2024-09-04 10:43:17 文字：【
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摘要：The new regulations on filing promote standardized development through institutional mechanisms, better play the role of the rule of law in stabilizing expectations and benefiting the long-term, and promote the formation of a good market ecology. The China Securities Regulatory Commission and relevant regulatory authorities will respect the independent choices of legally compliant enterprises and provide support.
After experiencing the freezing point of Chinese concept stocks going public in the United States in 2022 due to the Foreign Company Accountability Act issued by the United States, China and the United States have reached an agreement on audit and regulatory cooperation for Chinese concept stocks, as well as revoked the previous recognition of ineffective supervision of Chinese accounting firms, greatly reducing the risk of Chinese companies being passively delisted in the United States. Moreover, in order to support the integration of enterprises into global development and maximize the protection of the interests of market participants such as issuers and investors, China will officially implement the "Trial Measures for the Administration of Overseas Issuance and Listing of Securities by Domestic Enterprises" from March 31, 2023.
Regarding the "Trial Measures for the Administration of Overseas Issuance and Listing of Securities by Domestic Enterprises", it should be noted that firstly, matters that should be independently judged by investors should be handed over to the market, and no additional thresholds or conditions should be set for overseas listing. The second is to scientifically define the scope of regulation, while reducing regulatory blind spots and avoiding regulatory generalization. The third is to refine the requirements for filing procedures, fully consider overseas financing practices, distinguish different types of overseas issuances and listings, set differentiated filing requirements, and reduce the burden of filing for enterprises. Strengthen the connection between the filing process and overseas practices, improve the filing procedures for common overseas financing behaviors such as sub issuance, and avoid affecting the efficiency of enterprise financing.
The bill stipulates that if the filing materials are complete and meet the requirements, the China Securities Regulatory Commission shall complete the filing within 20 working days from the date of receiving the filing materials, and publicize the filing information through its website. From the perspective of approval time, among companies listed in the United States, Arno Pharmaceuticals has the shortest approval time (39 days), while Woke Medical Technology has the longest (177 days), with an average approval time of about 112 days.
The overseas listed capital group of small and medium-sized enterprises believes that enterprises should seize the appropriate timing according to their actual situation. While preparing the materials for overseas listing, they should also prepare the filing materials to be submitted to the China Securities Regulatory Commission. The two directions of work are actually "non-interference" and can be "dual pronged" to better improve the efficiency of enterprise listing.
This bill provides a market-oriented, rule of law, and international institutional environment for companies to go public overseas, giving them a basis to rely on during the process of overseas issuance and listing. It is conducive to avoiding various chaos from the source and significantly reducing policy uncertainty.
Small and medium-sized enterprises listed overseas capital groups believe that the new filing regulations are a more inclusive and open regulatory system, which is conducive to legal and compliant enterprises going public overseas. And it is precisely because of these policy and institutional guarantees that Chinese enterprises can better return to overseas markets and obtain more stable support from overseas market resources.
The bill also fully demonstrates that Chinese regulatory authorities support Chinese companies to "go global", which has led to a continuous increase in the enthusiasm of companies to go public overseas, and the number of Chinese concept stocks going public in the United States is gradually recovering. As of February 7, 2024, according to the official website of the China Securities Regulatory Commission, nearly 200 companies have applied for overseas listing registration. Among them, more than 100 companies have obtained filing notices for overseas listing.
The above data further indicates that the direction of the country's coordinated development and security, adhering to expanding opening-up to the outside world, supporting enterprises to make good use of two markets and two resources, and sharing the dividends of China's economic development with global investors will not change.
Small and medium-sized enterprises' overseas listed capital groups will also adhere to the guidance of China's policies and regulations to help enterprises go public overseas more smoothly and efficiently.
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