• Securities law has been revised and adopted on CHI PRL 15th meeting, 28 December 2019.
• Follows fourth reading of securities law submitted on 24 December 2019.

Amendments

• Registration-based system implemented for IPOs; companies no longer need advance approval from regulators and they are not required to be profitable before listing.
• Stock exchanges to process and examine listings and report to CSRC for registration.
• Strengthened protection of investors, especially small and individual investors.
• Harsher penalties for insider trading and company disclosure of incorrect information.

Stock Exchanges

• SSE and SZSE have issued provisions on information disclosure for listed companies.
• SZSE has issued disclosure template for changes in listed company shareholdings and disclosure template for listed company proposed appointment of accounting firms.
• SZSE has issued revised guidance on the standardized operation of listed companies after integrating and streamlining main board and SME composite board guidelines.

Effectiveness

• Revised securities law will be effective 1 March 2020.

1 March  2020 Update

• On 1 March 2020, CHI CSRC issued rules for SSE, SZSE re bond registration system.
• Information disclosed by issuer must be true and accurate and shall not be misleading.
• Urges securities institutions to fulfill due diligence obligations and role of "gatekeeper".
• Repealed 2014 notice on transfer services for corporate bonds once new law effective.
• In implementing new securities law, stock exchanges are working to ensure smooth transition, clarify standards for market participants and improve the listing system.
• CHI NDRC issued notice on implementation of the new registration system, clarified conditions for bond issuers and supervisory responsibilities of provincial departments.