Earlier, the CSRC said at the media briefing that this year, it will focus on building an over-the-counter market under unified national supervision, and expand the scope of capital market services to growth-oriented and innovative SMEs that do not yet have the conditions for public offering and listing.
Yao Gang said that the current discussion on the national OTC market is not conclusive, but the direction of thinking and the major principles to be promoted.
"The New Third Board will not have hard financial indicators, and listed companies need to meet a certain duration and establish a strict investor suitability system." Yao Gang said that the New Third Board will explore the introduction of a market maker system, in which market makers can hold certain shares, so that the bilateral quotation can proceed smoothly.
"New Third Board listed companies can conduct targeted financing and issue private debt for SMEs." Yao Gang believes that giving the New Third Board a certain financing function will help solve the financing problem of SMEs.
When talking about the relationship between the New Third Board and the main board market, Yao Gang said that the New Third Board will introduce a board transfer system, and listed companies can transfer their boards after reaching a certain standard, and they will become listed companies after two procedures: public offering review and IPO.
The New Third Board will set up a special market management organization to perform regulatory duties such as market rule making, supervision of listed companies, and approval of issuance and listing applications. The CSRC is responsible for market supervision and has promulgated measures for the management of OTC markets.
According to the requirements of the Securities Law and the relevant regulations of the State Council, public transfer is regarded as public offering and needs the approval of the CSRC. After the New Third Board breaks through the 200-person limit, it shall be included in the supervision of unlisted public companies, which shall be implemented with reference to the above provisions. Before the revision of relevant laws and regulations, the CSRC is studying the exchange listing audit to replace the issuance audit of the CSRC. "In developed countries in Europe and America, the listing review is also done by the exchange." Yao Gang said.
He also said that for local regional trading places approved by local governments, the CSRC will consider that the local equity trading market that meets the relevant regulations can continue to exist after the rectification of local exchanges is completed and passed the acceptance, and securities companies can enter this market for financial services. China Securities Regulatory Commission will provide guidance on the rules of this kind of "four-board" market.
Fu Zhekuan, a partner of Chen Da Venture Capital, believes that the launch of the national OTC market in the future means that PE institutions have more project sources and more sufficient information to understand these enterprises. But it will inevitably lead to an increase in the investment cost of the previous project. After listing, these enterprises will receive more attention and the transaction price will increase. The introduction of market makers will also increase the transaction price.
Some PE people also believe that before the launch of the transfer channel, PE institutions will not have great impetus to the listing companies of the New Third Board, and listing is not recommended. Because listing means that corporate information is open and transparent, and tax evasion is not allowed, it is not necessary for small companies to bear such financial costs. Even if individual investors are introduced, the "improved" New Third Board may not have the activity of the main board and the Growth Enterprise Market.