Provincial Government's "Notice on Issuing Several Opinions on Improving the Quality of Listed Companies and Promoting the Development of the Capital Market"

Listed companies are the cornerstone of the healthy and stable development of the capital market, and high-quality listed companies play a significant role in promoting the construction of the Hainan Free Trade Port. In order to implement the spirit of the "Opinions of the State Council on Further Improving the Quality of Listed Companies" (Guofa [2020] No. 14), improve the quality of listed companies in Hainan, and support the accelerated development of key industries and key parks, the following opinions are hereby put forward:

​1. Overall requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement the spirit of the 19th National Congress of the Communist Party of China and the Second, Third, Fourth and Fifth Plenary Sessions of the 19th Central Committee, firmly grasp the development opportunities of the Hainan Free Trade Port, and thoroughly implement the new development concept, accelerate the construction of a new dual-circulation development pattern, adhere to the direction of marketization and rule of law, adhere to equal emphasis on stock and increase, and combine symptomatic and fundamental treatment, give full play to the joint efforts of all parties, strengthen continuous supervision, and continue to optimize the structure and development environment of Hainan listed companies. The quality of information disclosure continues to improve, outstanding problems are effectively solved, and sustainable development capabilities and overall quality are significantly improved, providing strong support for the construction of Hainan Free Trade Port.

​2. Key tasks
(1) Focus on the development orientation of Hainan Free Trade Port’s key industries, build a good listing echelon, and promote listed companies to become better and stronger.

1. Establish and improve the backup resource library for listing. Adhere to the principles of government guidance, enterprise voluntariness, quality priority, and orderly advancement, establish and improve the reserve resource library for listed (listed) enterprises at the provincial, municipal (county) level, and consolidate the reserve resource base for enterprise listing (listed). Multi-channel publicity, mobilization and business training will increase the enthusiasm of enterprises to go public (listing). On the basis of voluntary declarations by enterprises, a group of enterprises that meet the key industry positioning of Hainan Free Trade Port, have good development prospects, have certain market competitiveness, and have corporate governance standards are identified and included in the database. Focus on cultivation, precise services, and dynamic management to build a good listing echelon and promote more high-quality companies to enter the capital market. (Responsible units: Provincial Local Financial Supervision Bureau, Provincial Department of Industry and Information Technology, Provincial Department of Commerce, Provincial Department of Tourism, Culture, Radio, Television and Sports, Provincial Department of Science and Technology, Provincial State-owned Assets Supervision and Administration Commission, Hainan Supervision Bureau of the China Securities Regulatory Commission, municipal and county governments, and provincial key industrial park, etc.)

2. Support the listing (listing) of key reserve companies. Increase support for existing high-quality enterprises in accordance with laws and regulations. Properly resolve historical issues and defective asset disposal encountered by backup companies in their listings. If an enterprise needs approval or the issuance of relevant certification documents due to shareholding reform or listing (listing), all cities and counties and departments must simplify the procedures, prioritize processing, and properly resolve the land and property rights confirmation and tax payment involved in the restructuring process of listed (listed) backup enterprises. , equity disputes, license re-issuance and administrative licensing inconsistency and other historical issues. Implement support policies for transaction taxes and other fees for enterprises handling equity, land, real estate and other matters during the restructuring process to effectively reduce restructuring costs. (Responsible units: Provincial Financial Supervision Bureau, Provincial Development and Reform Commission, Provincial Department of Natural Resources and Planning, Provincial Department of Tourism, Culture, Radio, Television and Sports, Provincial Department of Ecology and Environment, Provincial Department of Industry and Information Technology, Provincial Department of Commerce, Provincial Department of Science and Technology, Provincial Department of Science and Technology, Provincial Department of Department of Finance, Provincial Department of Housing and Urban-Rural Development, Provincial State-owned Assets Supervision and Administration Commission, Provincial Taxation Bureau, Provincial Market Supervision Bureau, Provincial Drug Administration, Hainan Branch of the State Administration of Foreign Exchange, Hainan Supervision Bureau of the China Securities Regulatory Commission, Provincial Forestry Bureau, municipal and county governments, and the Provincial Key industrial parks within the country, etc.)

3. Guide enterprises to scientifically plan their listing (listing) path. Taking the stock issuance registration system as an opportunity, we will guide enterprises to rationally choose issuance locations and sectors based on their own actual conditions and development strategies, and scientifically plan listing (listing) paths. Support leading companies with good market prospects and high profitability in listing on the main board. Support growth-oriented innovative and entrepreneurial enterprises to list on the GEM. Support companies with key core technologies and outstanding scientific and technological innovation capabilities to list on the Science and Technology Innovation Board. Support start-up and innovative small and medium-sized enterprises to be listed on the New Third Board, and encourage enterprises to enter the innovation layer, the selected layer and transfer to the board for listing. Support small, medium and micro enterprises to list in Hainan Equity Exchange Center. Support enterprises with characteristics and comparative advantages to issue and list overseas according to domestic and overseas financing plans, and accelerate the pace of Hainan enterprises going global. (Responsible units: Hainan Supervision Bureau of the China Securities Regulatory Commission, Provincial Local Financial Supervision Bureau, Provincial Development and Reform Commission, Provincial Department of Tourism, Culture, Radio, Television and Sports, Provincial Department of Industry and Information Technology, Provincial Department of Science and Technology, Provincial State-owned Assets Supervision and Administration Commission, Haikou Central Branch of the People’s Bank of China, and various cities County government, key industrial parks in the province, etc.)

4. Introduce high-quality companies to be listed. Make full use of the Hainan Free Trade Port's tax policy, processing value-added policy, investment and trade liberalization and facilitation, etc., and focus on introducing high-quality companies to be listed in the tourism, modern service industry, and high-tech industries to settle in Hainan, forming an agglomeration effect and driving the industry develop. Strengthen in-depth cooperation with central enterprises, local state-owned enterprises outside the province, and large private enterprises, introduce subsidiaries that are in line with the development direction of Hainan Free Trade Port's key industries to Hainan, and cultivate their listing or spin-off listing. Attract overseas-listed Chinese-funded enterprises to return to the Hainan Free Trade Port, and simultaneously support "going global" companies to establish subsidiaries or regional headquarters in the Hainan Free Trade Port. (Responsible units: Provincial Department of Commerce, Hainan International Economic Development Bureau, Provincial Local Financial Supervision Bureau, Provincial Department of Tourism, Culture, Radio, Television and Sports, Provincial Department of Industry and Information Technology, Provincial Department of Science and Technology, Provincial State-owned Assets Supervision and Administration Commission, Provincial Market Supervision Bureau, Provincial Pharmaceuticals Supervision Bureau, Hainan Supervision Bureau of China Securities Regulatory Commission, municipal and county governments, key industrial parks in the province, etc.)

5. Promote listed companies to become better and stronger. Support market-oriented mergers, acquisitions and reorganizations, and encourage listed companies to revitalize their existing stocks, improve quality and efficiency, and transform and develop. Support existing listed companies to carry out classified reorganization around advantageous industries, high-quality projects and high-quality assets. Guide listed companies with poor current performance to actively introduce powerful strategic investors, improve asset quality, and enhance sustainable operating capabilities. Listed companies with outstanding main businesses are encouraged to conduct mergers and acquisitions and reorganizations based on the industries encouraged by the Hainan Free Trade Port to promote the development of industrial clusters. Promote state-controlled listed companies to combine the three-year reform of state-owned enterprises and enhance the leading role of state-owned capital in the construction of Hainan Free Trade Port. Support listed companies in diversified financing methods such as bonds and asset-backed securities. (Responsible units: Hainan Supervision Bureau of the China Securities Regulatory Commission, Provincial Local Financial Supervision Bureau, Provincial Development and Reform Commission, Provincial Department of Tourism, Culture, Radio, Television and Sports, Provincial Department of Industry and Information Technology, Provincial Department of Commerce, Provincial Department of Science and Technology, Provincial Department of Finance, Provincial State-owned Assets Supervision and Administration Commission Party Committee, Provincial Market Supervision Bureau, Provincial Taxation Bureau, Provincial Drug Administration, municipal and county governments, key industrial parks in the province, etc.)

(2) Actively solve the outstanding problems and key risks of listed companies in Hainan.

6. Improve the governance level of listed companies. Supervise listed companies to standardize corporate governance and internal control, and continuously improve the modernization level of governance systems and internal control systems. Strengthen the supervision of controlling shareholders, actual controllers, directors, supervisors and senior management of listed companies. Carry out special corporate governance actions to standardize the operations of shareholders' meetings, boards of directors, boards of supervisors, and managers of listed companies. Scientifically define the rights and responsibilities of relevant parties in the governance of state-controlled listed companies, and improve the governance mechanism of state-controlled listed companies. Strengthen the supervision of information disclosure by listed companies and urge listed companies, shareholders and relevant information disclosure obligors to improve the quality of information disclosure. Supervise relevant entities to support and cooperate with listed companies in fulfilling their information disclosure obligations in accordance with the rules and regulations, and strengthen the management of insiders of inside information. (Responsible units: Hainan Supervision Bureau of the China Securities Regulatory Commission, Provincial State-owned Assets Supervision and Administration Commission, various industry authorities, etc.)

7. Actively and steadily resolve stock pledge risks. Persist in controlling increments and resolving existing issues, and promote the prevention and resolution of stock pledge risks in a market-oriented and legal manner. Improve the early warning, monitoring, prevention, and disposal mechanisms for stock pledge risks, strengthen the supervision of stock pledge information disclosure of listed companies, and strictly control the pledge of restricted shares. Strengthen the main responsibilities of major shareholders and actual controllers of listed companies. Further leverage the linkage between the provincial financial supervision and risk disposal coordination mechanism and the local coordination mechanism of the Financial Commission Office (Hainan Province), strengthen the sharing of stock pledge information of listed companies, and coordinate risk disposal. Support banks, securities, insurance, private equity funds and other institutions to participate in resolving stock pledge risks of listed companies. (Responsible units: Hainan Supervision Bureau of China Securities Regulatory Commission, Provincial Local Financial Supervision Bureau, Haikou Central Branch of the People's Bank of China, Hainan Supervision Bureau of China Banking and Insurance Regulatory Commission, Provincial Department of Finance, Provincial State-owned Assets Supervision and Administration Commission, municipal and county governments, etc.)

8. Seriously deal with the problems of capital occupation and illegal guarantees. Strengthen the monitoring of capital occupation and illegal guarantee risks of listed companies, and prevent the controlling shareholders, actual controllers and related parties of listed companies from misappropriating the interests of listed companies in any way. Adhere to legal supervision and classified disposal, and repay or resolve existing capital occupation and illegal guarantee issues within a time limit; investigate and deal with new capital occupation and illegal guarantee issues that have not been rectified within a time limit or that have occurred in accordance with laws and regulations. When a listed company implements bankruptcy reorganization, it shall propose practical plans to solve the problems of capital occupation and illegal guarantees, and effectively protect the legitimate rights and interests of the listed company and small and medium-sized shareholders. (Responsible units: Hainan Supervision Bureau of the China Securities Regulatory Commission, Provincial Local Financial Supervision Bureau, Provincial Public Security Department, Provincial High Court, etc.)

9. Increase the intensity of investigation and punishment of violations of laws and regulations. Comprehensively implement the "zero tolerance" requirement, severely crack down on fraudulent issuances, illegal information disclosure, market manipulation, insider trading and other illegal activities, and those who constitute a crime will be held criminally responsible in accordance with the law. Adhere to double investigation of one case, and investigate and deal with the securities companies, securities service agencies and other intermediary agencies and practitioners involved. Improve the diversified dispute resolution mechanism for securities and futures and implement the securities civil compensation system. Strengthen information sharing and credit punishment for entities that seriously damage the legitimate rights and interests of listed companies and investors to create a good ecosystem. (Responsible units: Hainan Supervision Bureau of the China Securities Regulatory Commission, Haikou Central Branch of the People's Bank of China, Provincial Local Financial Supervision Bureau, Provincial Development and Reform Commission, Provincial Market Supervision Bureau, Provincial Public Security Department, Provincial High Court, etc.)

10. Do a good job in delisting disposal. Support listed companies to clear risks through mergers and acquisitions, restructuring, bankruptcy and reorganization, voluntary delisting and other channels. Strengthen delisting supervision and severely crack down on malicious circumvention of delisting through financial fraud, profit transfer, market manipulation and other methods. Improve delisting risk monitoring, early warning and information sharing mechanisms, establish a delisting risk prevention and control working mechanism, and ensure the smooth delisting of listed companies. (Responsible units: Hainan Supervision Bureau of the China Securities Regulatory Commission, Provincial Public Security Department, Provincial Local Financial Supervision Bureau, Provincial State-owned Assets Supervision and Administration Commission, Provincial Market Supervision Bureau, Provincial High Court, various city and county governments, etc.)

(3) Improve the construction of factor markets and enhance intermediary service capabilities and levels.

11. Promote market-oriented allocation of capital factors. Accelerate the capitalization of equity and assets and promote the orderly and smooth flow of various capital elements. Support and encourage qualified companies to issue innovative financing tools such as perpetual bonds, convertible bonds, infrastructure REITs (real estate investment trust funds), talent rental housing REITs (real estate investment trust funds) and other asset securitization products to enrich financing means to expand the scale of direct financing. Optimize the implementation mechanism of the "insurance ' futures" project, improve the operation model of fiscal capital guidance and social capital participation, expand coverage, and enhance the industry's ability to resist risks. Standardize the operation of futures bonded delivery warehouses. Explore the development of over-the-counter commodity derivatives business. (Responsible units: Provincial Local Financial Supervision Bureau, Haikou Central Branch of the People's Bank of China, Hainan Supervision Bureau of the China Banking and Insurance Regulatory Commission, Hainan Supervision Bureau of the China Securities Regulatory Commission, various city and county governments, etc.)

12. Improve the intermediary service system. Adhere to equal emphasis on regulation and development, and actively introduce various intermediary service agencies to form a certain agglomeration effect and enhance the comprehensive strength and service level of intermediary agencies. Guide Hainan securities operating institutions to enhance their capital strength, enhance professional service capabilities, build high-quality investment banking, wealth management and other intermediary service systems, expand business areas, and enhance core competitiveness. Consolidate the responsibilities of intermediaries and urge relevant intermediaries to strictly perform statutory duties such as verification and professional control. Support various intermediaries to actively connect with Hainan's key parks and key industries, and provide policy consultation and professional guidance on enterprise restructuring, listing, financing, mergers and acquisitions, and industrial planning. (Responsible units: Provincial Local Financial Supervision Bureau, Provincial Department of Commerce, Hainan International Economic Development Bureau, Provincial Department of Finance, Hainan Supervision Bureau of China Securities Regulatory Commission, municipal and county governments, key industrial parks in the province, etc.)

(4) Improve the policy support system and strengthen policy publicity.

13. Increase policy support. Implement hierarchical, classified, and staged incentive measures to effectively promote Hainan enterprises to use the capital market to support high-quality economic and social development. Support city and county governments (parks) in accordance with laws and regulations to reward and support the listing (listing), mergers and acquisitions, and direct financing of local enterprises, and assist in the introduction of venture capital institutions that set up headquarters, newly moved listed companies, and participate in investments in Hainan enterprises. , intermediaries that sponsor listed (listed) companies, etc. will be given certain rewards and support. (Responsible units: municipal and county governments, key industrial parks in the province, provincial finance department, etc.)

14. Strengthen policy coordination for major emergencies. When natural disasters, public health and other major emergencies occur, which have a serious impact on the normal production and operation of listed companies, rely on coordination mechanisms such as macro policies and financial stability to strengthen collaboration and linkage and provide listed companies with industrial, financial, fiscal and taxation policies. Support; take timely measures to maintain labor employment, production materials, public supplies supply and logistics transportation channels, and support listed companies to resume normal production and operations as soon as possible. (Responsible units: Provincial Local Financial Supervision Bureau, city and county governments, Haikou Central Branch of the People's Bank of China, Hainan Supervision Bureau of the China Securities Regulatory Commission, Provincial Development and Reform Commission, Provincial Department of Finance, Provincial Department of Industry and Information Technology, Provincial Department of Commerce, Provincial Taxation Bureau, Bank Insurance Regulatory Commission Hainan Supervision Bureau, etc.)

15. Implement detailed talent support policies. Combined with the relevant talent policies of the Hainan Free Trade Port, strengthen the publicity and implementation of preferential tax policies for encouraged industrial enterprises, high-end talents and urgently needed talents, effectively protect the legitimate rights and interests of enterprises and individuals, vigorously introduce professional talents, and optimize the professional talent structure. Establish and improve the mechanism for the introduction, training, and cultivation of professional talents to form a team of professional talents with an international perspective, familiar with the operating rules of the capital market, and proficient in financial business, and effectively improve the quantity and quality of financial talents. Enterprises in the province are encouraged to adopt market-oriented allocation methods, improve incentive mechanisms that are closely linked to performance, encourage innovation and creation of financial talents, and attract more high-end talents. Cooperate with financial institutions, universities, research institutes (institutes), etc. to organize academic exchanges, special seminars or forums and other activities in the financial field to attract high-level experts and talents to participate in Hainan's financial development and construction. Organize activities for entrepreneurs of listed companies and companies planning to be listed, strengthen interaction and communication, and create a good atmosphere for listing. (Responsible units: Organization Department of the Provincial Party Committee, Talent Development Bureau of the Provincial Party Committee, Provincial Taxation Bureau, Provincial Local Financial Supervision Bureau, Haikou Central Branch of the People's Bank of China, Hainan Supervision Bureau of the China Securities Regulatory Commission, Provincial State-owned Assets Supervision and Administration Commission, municipal and county governments, etc.)

​3. Job security
First, do a good job in organizational leadership. Establish and improve the working mechanism jointly led by the Provincial Local Financial Supervision Bureau and the Hainan Supervision Bureau of the China Securities Regulatory Commission to improve the quality of listed companies and better utilize the capital market, clarify the division of responsibilities of each department, and form a joint effort.

Second, strengthen work coordination. Establish and improve the coordination mechanism of development and reform, finance, taxation, customs, state-owned assets, finance, market supervision, industry supervision, judicial authorities and other units, and coordinate and solve the problems of enterprise restructuring and listing (listing), guidance, and refinancing on the premise of legal compliance. , mergers and acquisitions, restructuring, bond issuance and other aspects of various problems encountered, and properly resolve the risk of corporate delisting. Strengthen joint punishment, increase the cost of violations, and create a good ecosystem for the development of the capital market.

Third, clarify the main responsibilities. Clarify the main responsibilities of listed companies, the supervisory responsibilities of regulatory authorities, and the service coordination and risk management responsibilities of government departments, and give full play to the platform service functions of regional equity markets and listed companies associations. Relying on the professional strength of the market, give play to the role of policy research, think tank consulting, professional training, and talent cultivation, and create a healthy capital market culture and a good external environment that supports the high-quality development of listed companies.