To thoroughly implement the requirements of the Central Committee of the Communist Party of China and the State Council regarding the promotion of the healthy development of the capital market, and to better implement the "Opinions of the State Council on Further Improving the Quality of Listed Companies" (State Council Document [2020] No. 14)the "Opinions of the General Office of the People’s Government of Guangxi Zhuang Autonomous Region on Accelerating the High-Quality Development of Guangxi’s Capital Market" (Gui Zheng Ban Fa [2021] No. 4), and the "Notice of the General Office of the People’s Government of the Autonomous Region on Issuing the Three-Year Action Plan for the Reform and Development of Guangxi’s Capital Market (2021–2023)" (Gui Zheng Ban Fa [2021] No. 62), we will accelerate the establishment of a new pattern of all-round open development characterized by "southward integration, northward linkage,Eastward Integration, and Westward Cooperation.” In accordance with the “Several Policies on Supporting the Construction and Development of the Guangxi Eastward Integration Pilot Demonstration Zone (Hezhou)” (hereinafter referred to as the “17 Measures for Eastward Integration”), and to promote the high-quality development of our city’s capital market, facilitate economic transformation and upgrading, guide more enterprises to access the capital market, increase the proportion of direct financing, and enhance the capital market’s service to Hezhou’s economic and social development, these Implementation Opinions are hereby formulated.
I. General Requirements
(1) Guiding Principles.Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement General Secretary Xi Jinping’s important directives on promoting the development of the capital market. We will adhere to government guidance, market-oriented operations, and professional services, fully leveraging the capital market’s role in resource allocation, driving economic transformation, facilitating structural adjustment, and advancing institutional innovation. We will intensify efforts to guide, nurture, and support enterprises, accelerate the pace of corporate listings (or listings on over-the-counter markets), enhance the quality of listed (or listed on OTC markets) companies, expand the scale of the capital market, boost economic transformation and upgrading, and promote the high-quality development of the city’s capital market.
(2) Main Tasks. To meet the requirements of high-quality economic and social development in the new era, we will thoroughly implement the “Three Major Projects” for enterprise listings (quotations), strengthen policy support, foster a favorable market development environment, cultivate a multi-tiered capital market system, and further enhance the capacity to serve the real economy.By 2025, we aim to have 2 companies listed (or listed on over-the-counter exchanges) both domestically and internationally, 2–3 enterprises listed on the “New Third Board,” 2–3 new companies filing for initial public offerings (IPOs), and at least 3 companies registered for IPO guidance. This will achieve a significant improvement in both the quantity and quality of listed (or listed on over-the-counter exchanges) enterprises in our city, steadily increase the proportion of direct financing, address shortcomings in the development of our city’s capital markets, and provide strong support for our city’s economic restructuring, industrial transformation and upgrading, and high-quality economic development.
II. Key Policy Measures
(I) Promoting the Healthy Development of Listed Companies
1. Focus on enhancing the standardization of listed companies’ operations. Actively implement policies aimed at improving the quality of listed companies, guiding them to focus on their core businesses and operate prudently. Encourage and support listed companies in implementing equity incentive and employee stock ownership plans to establish sound long-term incentive mechanisms.In coordination with the China Securities Regulatory Commission (CSRC) and the Guangxi Securities Regulatory Bureau, we will urge listed companies and relevant information disclosure obligors to disclose information truthfully, accurately, completely, timely, and fairly, thereby improving the quality of information disclosure; urge listed companies to improve their governance structures, hold controlling shareholders and other key stakeholders accountable, and enhance corporate governance standards; and urge listed companies to strengthen internal control mechanisms, improve the effectiveness of internal controls, and eliminate violations such as the unauthorized use of company funds, unauthorized guarantees, and insider trading;Strengthen behavioral constraints and accountability for dereliction of duty among directors, supervisors, and senior management of listed companies. Encourage counties (districts) to engage market-based institutions such as securities firms, accounting firms, and law firms to provide professional consulting services to pre-IPO companies. Over the next 3 to 5 years, drive a significant improvement in the overall quality of listed companies in our city. [Responsible Units: People’s Governments of all counties (districts), Municipal Finance Bureau (Financial Affairs Office), Industry and Information Technology Bureau, State-owned Assets Supervision and Administration Commission, etc.]
2. Enhance the refinancing capacity of listed (or listed on a stock exchange) companies. Encourage listed companies to expand their refinancing scale through methods such as rights issues, share placements, and the issuance of preferred shares. For listed (or listed on a stock exchange) companies in our city that successfully secure refinancing, rewards will be granted in accordance with relevant regulations of the Autonomous Region and Hezhou City. [Responsible Units: People’s Governments of all counties (districts), Municipal Finance Bureau (Financial Affairs Office), Bureau of Industry and Information Technology, State-owned Assets Supervision and Administration Commission, etc.]
3. Promote market-oriented mergers and acquisitions (M&A) and restructuring. Encourage listed companies to utilize the capital market to revitalize existing assets, improve quality and efficiency, and enhance competitiveness. Guide listed companies to achieve transformative development through M&A, restructuring, and the introduction of strategic investors.Fully leverage the role of listed companies in integrating resources and enhancing industrial concentration. For M&A and restructuring projects that meet the requirements, rewards will be granted in accordance with relevant regulations. At the same time, we must effectively prevent and crack down on illegal activities such as fraudulent restructuring or insider trading through restructuring. [Responsible Units: People’s Governments of all counties (districts), Municipal Finance Bureau (Financial Affairs Office), Industry and Information Technology Bureau, State-owned Assets Supervision and Administration Commission, Public Security Bureau, etc.]
(2) Accelerate the Listing (or Quotation) of Enterprises
1. Strengthen publicity and training to raise awareness of the capital market. With each county (district) taking the lead, and following the basic approach of “cultivating a group, implementing shareholding reforms for a group, listing on the NEEQ for a group, and taking a group public,” we will align with the development goals of key regional industries. Through a combination of “bringing in” and “going out,” we will conduct 1–2 rounds of publicity, mobilization, and training sessions annually, inviting experts from professional institutions such as Guohai Securities to deliver lectures.Organize high-quality enterprises within their jurisdictions to “go out” and visit the Shanghai and Shenzhen Stock Exchanges, the National Equities Exchange and Quotations (NEEQ), and listed companies for study tours, as well as to participate in corporate listing promotion events and thematic seminars. Through various formats, disseminate theoretical knowledge, policy updates, operational techniques, and case studies regarding the capital market to enhance enterprises’ awareness, motivation, and capability to engage with multi-tiered capital markets. [Responsible Units: People’s Governments of all counties (districts), Municipal Finance Bureau (Financial Affairs Office), Bureau of Industry and Information Technology, State-owned Assets Supervision and Administration Commission, etc.]
2. Strengthen the development of the reserve pool for enterprises preparing for listing (or listing on the NEEQ). Relevant departments at all levels shall, in conjunction with regional key industrial development goals and high-quality enterprise resources, systematically screen key enterprises with distinct core businesses, strong competitive capabilities, high profitability, and development potential. They shall update Hezhou City’s reserve pool for enterprises preparing for listing (or listing on the NEEQ) and implement dynamic management.Member units of the Municipal Capital Market Work Leading Group—including the Municipal Development and Reform Commission, Industry and Information Technology Bureau, Science and Technology Bureau, Investment Promotion and Commerce Bureau, and Agriculture and Rural Affairs Bureau—shall annually recommend 3–5 high-quality potential listing (or listing on a stock exchange) enterprises identified within their respective departments or industries to the Municipal Finance Bureau (Financial Affairs Office).Each county (district) shall maintain a dynamic inventory of no fewer than 2 potential listing (or listing on a stock exchange) enterprises in its database annually. By the end of January each year, they shall report the status of local potential listing (or listing on a stock exchange) enterprises to the Municipal Finance Bureau (Financial Affairs Office) for consolidation and shall provide follow-up services.The Municipal Finance Bureau (Financial Affairs Office) shall continuously expand and refine the Hezhou City pool of potential listed (or listed on a stock exchange) enterprises based on recommendations from counties (districts) and relevant municipal departments, maintaining a dynamic inventory of approximately 20 enterprises.Relevant municipal departments and all counties (districts) shall designate enterprises in the database as targets for targeted cultivation, strengthen business guidance, and promote their early listing (or listing on a stock exchange). [Responsible Units: Member units of the Municipal Capital Market Work Leading Group; People’s Governments of all counties (districts)]
3. Intensify cultivation efforts to enhance the quality of enterprises in the IPO pipeline. Improve mechanisms for enterprises to access multi-tiered capital markets, accelerate the transformation of enterprises into joint-stock companies, refine modern corporate governance structures, elevate the standardization of pre-IPO enterprises, and provide targeted cultivation for enterprises in the IPO pipeline. Based on the distinct characteristics and IPO progress of enterprises, establish a tiered, industry-specific, and phased enterprise pipeline database to optimize management and services.“Specialized, Refined, Unique, and Innovative” (SRUI) small and medium-sized enterprises (SMEs) shall be given priority for inclusion in the pool of potential listing (quotation) enterprises and shall receive focused guidance on going public. Key prospective listing enterprises shall be given priority support. Investment projects of potential enterprises that align with national and autonomous region industrial policy directions shall be recommended for inclusion in the autonomous region’s major project database; those already listed as key construction projects in the plans of the autonomous region, city, or county (district) shall be given priority support under equal conditions.In accordance with the requirements of the national securities issuance registration system and the “New Third Board” reform, support all eligible enterprises in listing (or going public) both domestically and internationally. Strictly screen a group of intermediary institutions with good reputations and strong professional capabilities, promote and recommend them to our city’s prospective listed enterprises, reduce the cost of going public for enterprises, and provide high-quality services to enterprises. [Responsible Units: People’s Governments of all counties (districts), member units of the Municipal Capital Market Work Leading Group]
(3) Promoting Shareholding Reform and Listing of State-Owned Enterprises
Encourage platform companies to actively seek out high-quality listed companies both within and outside the region, acquire shares in listed companies through asset acquisitions or other means, strive to achieve controlling stakes, and, where conditions permit, relocate their registered offices back to Hezhou.Intensify efforts in the shareholding reform of state-owned enterprises and accelerate the process of listing (or going public). Promote the securitization of state-owned assets and encourage state-owned enterprises to carry out mixed-ownership reforms. Based on the functional positioning of different enterprises, gradually adjust the proportion of state-owned equity to form an operational mechanism characterized by a diversified equity structure, standardized shareholder behavior, effective internal constraints, and efficient and flexible operations. Achieve shareholding reform, mixed-ownership reform, and listing to enhance the competitiveness, influence, and risk-resilience of state-owned enterprises.The people’s governments of all counties (districts) and the Municipal State-owned Assets Supervision and Administration Commission (SASAC) shall intensify their efforts and formulate targets for the shareholding reform and listing (or listing on a stock exchange) of state-owned enterprises based on the actual conditions of their reform and development. [Responsible Units: People’s Governments of all counties (districts), Municipal SASAC, etc.]
(4) Make Full Use of the IPO Green Channel Policy
Fuchuan Yao Autonomous County and Zhaoping County shall continue to fully utilize the IPO “green channel” policy stipulated in the China Securities Regulatory Commission’s “Opinions on Leveraging the Role of the Capital Market to Serve the National Poverty Alleviation Strategy,” and thoroughly identify potential resources for enterprise listings (or listings on the National Equities Exchange and Quotations). Green channels shall be established for eligible enterprises regarding initial public offerings (IPOs), listings on the “New Third Board,” bond issuances, and mergers and acquisitions.The competent authorities of each industry should actively recommend leading enterprises with distinctive characteristics within their sectors to make full use of this policy, thereby accelerating the process of listing (or going public). [Responsible Units: People’s Governments of Fuchuan Yao Autonomous County and Zhaoping County; member units of the Municipal Capital Market Work Leading Group]
(5) Optimizing the Development Environment for the Capital Market
1. Strengthen lawful supervision of the capital market. Strictly implement the new Securities Law of the People’s Republic of China, effectively strengthen supervision of market entities, standardize market conduct, maintain market order, and safeguard the legitimate rights and interests of market participants. Improve the coordination mechanism for regulatory work, enhance collaboration, and severely crack down on all types of illegal and non-compliant activities in the capital market in accordance with the law. Further standardize the dissemination of information in the capital market and foster a healthy public opinion environment.Strengthen publicity and education to enhance investors’ risk awareness. [Responsible Units: Municipal Publicity Department, Intermediate People’s Court, Municipal Finance Bureau (Financial Affairs Office), Public Security Bureau, etc., and People’s Governments of all counties (districts)]
2. Prevent and defuse major financial risks. Strengthen forecasting and analysis, further improve the risk monitoring system, achieve information sharing among governments at all levels and regulatory authorities, and enhance the ability to identify and issue early warnings for major financial risks. High priority must be given to preventing and defusing risks such as the delisting of listed companies, stock pledges by major shareholders, bond defaults, and major violations of laws and regulations by market entities. In accordance with the principles of territorial management and responsibility, establish and improve emergency response and rapid reaction mechanisms for handling sudden incidents in the capital market.[Responsible Units: People’s Governments of all counties (districts); member units of the Municipal Capital Market Work Leading Group]
3. Continuously optimize the business environment. Promote the inclusion of financial knowledge, such as investor protection, in national education curricula or classroom instruction. Further improve service levels for corporate restructuring, initial public offerings (IPOs), asset reorganization, and refinancing. Streamline approval procedures for matters related to land, real estate, taxation, environmental protection, as well as market supervision, project approval, and compliance certification. Encourage the reduction or waiver of relevant fees within the scope permitted by laws and regulations. [Responsible Units: People’s Governments of all counties (districts); member units of the Municipal Capital Market Work Leading Group]
(6) Increase Incentives
Further strengthen policy support for enterprises. In addition to subsidies and incentive policies available at the autonomous region level as prescribed, eligible enterprises may concurrently benefit from relevant policy incentives introduced by our city. Where provisions of our city’s current or future policies overlap, enterprises may choose to implement the most favorable policy; however, benefits may not be stacked.At the same time, to firmly seize the new positioning and mission entrusted by the autonomous region to build the Guangxi Eastward Integration Pilot Demonstration Zone, actively integrate into the development of the Guangdong-Hong Kong-Macao Greater Bay Area, and construct the Guangxi Eastward Integration Pilot Demonstration Zone to a high standard, all counties (districts) are encouraged to formulate supplementary support policies. [Responsible Units: People’s Governments of all counties (districts); member units of the Municipal Capital Market Work Leading Group]
III. Work Requirements
(1) Strengthen Organizational Leadership. Following the model of the autonomous region, establish the Hezhou Municipal Capital Market Work Leading Group and adjust and supplement the Hezhou Municipal Leading Group for Cultivating Enterprise Listings (adjustments to be issued separately). This group shall be responsible for the organizational coordination, guidance, promotion, and resolution of key challenges in the municipal capital market, addressing prominent issues such as personnel and funding to ensure the high-quality and efficient completion of tasks.
(2) Strengthen Communication and Collaboration. Within the institutional framework of the Municipal Capital Market Work Leading Group, enhance the sharing of information and resources among departments, strengthen coordination on major matters, jointly study and resolve key challenges encountered in capital market development, promote enterprise listings (or listings on over-the-counter markets), and achieve the long-term development of enterprises. All departments must strengthen communication and coordination to promptly address issues in capital market work that require cross-departmental collaboration.
(3) Enhance listing services. People’s governments of all counties (districts) and relevant departments shall establish green channels, vigorously develop technology finance, green finance, and inclusive finance, optimize procedures, and improve efficiency. They shall adopt approaches such as “one policy per enterprise” and “case-by-case” approaches to help prospective listed companies resolve historical legacy issues such as project approvals, land and property transfers, asset transfers, business registration, and property rights confirmation. They should expedite the processing of fundraising project approvals, business licenses, property and equity registrations, as well as the preparation of supporting documents required by securities regulators and stock exchanges, thereby reducing enterprises’ institutional transaction costs.For new projects undertaken by prospective listed companies that comply with national industrial policies, local governments and relevant departments must provide support in accordance with laws and regulations regarding project approval, land use, and environmental impact assessments, and expedite processing where policy conditions are met.
Office of the People’s Government of Hezhou City
Issued on November 29, 2021
