Chapter 1 General Provisions
Article 1 To fully implement the spirit of the 19th National Congress of the Communist Party of China and the Second, Third, Fourth, Fifth, and Sixth Plenary Sessions of the 19th Central Committee, to carry out the strategic deployments of the Central Economic Work Conference and capital market reforms, to fully leverage the role of the capital market in optimizing resource allocation and promoting industrial transformation and upgrading, and to support the high-quality economic development of the entire city,in accordance with the spirit of the “Notice of the General Office of the Luoyang Municipal People’s Government on Issuing the Five-Year Action Plan for Enterprise Listing and Quotation in Luoyang (2019–2023)” (Luozhengban [2019] No. 31), and in conjunction with capital market reforms, these Measures are hereby formulated.
Article 2 The use and management of incentive and subsidy funds shall adhere to the principles of government guidance, prioritization of key areas, emphasis on practical results, and openness and transparency.
Chapter II Scope and Standards of Support
Article 3 Support for Domestic Listings. For enterprises in our city that are preparing for an initial public offering (IPO) and apply to list on the Beijing Stock Exchange, the Shanghai Stock Exchange, or the Shenzhen Stock Exchange, rewards of 2 million yuan, 3 million yuan, and 1 million yuan shall be granted to the applicant enterprises at the three milestones of passing the guidance assessment by the Henan Provincial Securities Regulatory Bureau, passing the issuance review, and commencing trading, respectively.
Article 4 Support for Enterprises Listing Overseas. For enterprises in our city preparing for an overseas listing, rewards of 2 million yuan and 3 million yuan shall be granted upon receiving approval from the China Securities Regulatory Commission and upon commencement of trading, respectively.
Article 5: Support for Enterprise Listing. Our city supports prospective listed enterprises in listing on the National Equities Exchange and Quotations (hereinafter referred to as the “NEEQ”) and the Zhongyuan Equity Exchange Center (hereinafter referred to as the “Fourth Board”).
1. Enterprises that successfully list on the Basic Tier of the NEEQ will receive a reward of 300,000 yuan.
2. To support companies listed on the New Third Board in accelerating their transition to higher tiers, a reward of 200,000 yuan will be granted to companies that, after being cultivated in the Basic Tier, advance to the Innovation Tier of the New Third Board for the first time.
3. Enterprises that successfully list directly on the Innovation Tier of the NEEQ will be awarded 500,000 yuan.
4. A reward of 200,000 yuan will be granted to enterprises listed on the trading board of the Fourth Board.
Article 6: Support for Relocation of Listed Companies from Other Regions. A one-time reward of 6 million yuan shall be granted to listed companies from outside Luoyang (i.e., outside the administrative region of Luoyang) that are listed on the Beijing Stock Exchange, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, or major overseas stock exchanges, and that relocate to our city and complete the changes to their business registration and tax registration.
Article 7: Support for Mergers and Acquisitions (M&A). For listed companies in our city that successfully carry out M&A of enterprises outside the Luoyang administrative region and meet the criteria for major asset restructuring as stipulated in the China Securities Regulatory Commission’s “Measures for the Administration of Major Asset Restructuring of Listed Companies,” the following rewards shall be granted: 1 million yuan for transactions under 500 million yuan; 2 million yuan for transactions between 500 million yuan and 1 billion yuan; and 3 million yuan for transactions of 1 billion yuan or more.Enterprises that have already benefited from the M&A and restructuring policies outlined in the “Notice of the Luoyang Municipal People’s Government on Issuing the Implementation Plan for the Quality Improvement and Doubling Plan of High-Growth Enterprises in Luoyang” (Luo Zheng Ban [2021] No. 34) shall not be eligible for the benefits under this policy.
Article 8: Equity Investment Support. For various private equity funds and investment companies that provide equity investment support to non-listed enterprises in our city (excluding investments in establishing funds), a one-time reward of 1% of the investment amount shall be granted, with a maximum reward of 500,000 yuan per project and a maximum of 1 million yuan per enterprise per year.
Chapter III Application Requirements and Procedures
Article 9: In principle, eligible entities shall submit applications to the Financial Work Bureau of their respective county or district by April 30 of each year. By May 31, the county or district Financial Work Bureau shall compile and review the application materials from its jurisdiction and submit them to the Municipal Financial Work Bureau.After the Municipal Financial Work Bureau, in conjunction with the Municipal Finance Bureau, conducts a preliminary review of the application materials, the Municipal Finance Bureau shall engage a third-party audit firm to audit the relevant materials. Once the review results have been publicly announced on the official website of the Municipal Financial Work Bureau and no objections are raised, the Municipal Financial Work Bureau, in conjunction with the Municipal Finance Bureau, shall submit the review opinion to the Municipal Government. Upon approval by the Municipal Government, the Municipal Financial Work Bureau shall directly process the disbursement procedures for the applicant entities.
Article 10 Application Materials
(1) To apply for the reward for domestic listing, the applicant must provide a funding application report, the enterprise’s business license,a letter of no objection regarding the guidance status issued by the Henan Provincial Securities Regulatory Bureau, an acceptance letter issued by the China Securities Regulatory Commission (or the exchange), the announcement of the review results by the CSRC’s Issuance Review Committee, the CSRC’s approval for the registration of the initial public offering (IPO), the listing announcement for the IPO of the listed company, an official letter from the Beijing, Shanghai, or Shenzhen Stock Exchanges certifying that the enterprise has completed the relevant listing procedures, a declaration of authenticity of the application materials, and information on the basic deposit account, among other relevant materials.
(2) To apply for rewards for overseas listings, the following materials must be provided: a funding application report, the company’s business license, the approval document from the China Securities Regulatory Commission (CSRC), an official letter from the overseas stock exchange certifying that the company has completed the relevant listing procedures, a declaration of authenticity of the application materials, and information regarding the primary deposit account, among other relevant materials.
(3) To apply for a listing incentive, the following materials must be provided: a funding application report, the company’s business license, a letter of acceptance and a letter of approval for listing on the Basic Tier or Innovation Tier issued by the National Equities Exchange and Quotations (NEEQ), proof of the company’s tier upgrade on the NEEQ, a letter of approval for listing issued by the Zhongyuan Equity Exchange Center, a declaration of authenticity of the application materials, and information on the primary deposit account.
(4) To apply for a relocation incentive for listed companies from other regions, the following materials must be provided: a funding application report, the company’s business license, proof of relocation of the registered office and tax registration to our city, a commitment not to relocate within five years, a declaration of authenticity of the application materials, and information on the primary deposit account, among other relevant materials.
(5) To apply for merger and reorganization incentives, the following materials must be provided: a funding application report; business licenses of both merging and reorganizing companies; relevant proof that the transaction complies with the China Securities Regulatory Commission’s “Measures for the Administration of Major Asset Reorganization of Listed Companies” and that the major asset reorganization has been completed; a declaration of authenticity of the application materials; and information on the primary deposit account, among other relevant materials.
(6) To apply for equity investment incentives, the following materials must be provided: a funding application report; proof of filing of the private equity fund or investment company with the National Development and Reform Commission (NDRC), the Asset Management Association of China (AMAC), or the Securities Association of China; the business license of the fund management company; proof of the fund management company’s filing with AMAC; the investment contract; a detailed list of supported enterprises (including the name of the investee company, registered location, investment amount, term, and exit method);fund deposit vouchers, proof of business registration changes, a declaration of authenticity of the application materials, and basic deposit account information, among other relevant materials.
Article 11 The Municipal Financial Work Bureau is responsible for including the Special Fund for Capital Market Development in the department’s annual budget based on actual circumstances and for disbursing the funds in a timely manner. The Municipal Finance Bureau shall review the fund allocation plan proposed by the Municipal Financial Work Bureau, incorporate it into the annual fiscal budget, and submit it for approval in accordance with statutory procedures.
Chapter IV Supervision, Inspection, and Performance Management
Article 12 The Municipal Financial Affairs Bureau, in conjunction with the Municipal Finance Bureau, shall conduct unscheduled supervision and inspections of the review, disbursement, and use of the special funds. Any issues discovered during inspections shall be addressed in a timely manner in accordance with relevant laws and regulations to ensure the full implementation of incentive and subsidy policies.
Article 13 The Municipal Financial Affairs Bureau shall strengthen performance management of the special funds in accordance with relevant municipal budget performance management regulations. It shall be responsible for formulating performance targets for the special funds, conducting performance monitoring during budget execution, and carrying out performance evaluations of the special funds after the end of the fiscal year, compiling a performance evaluation report to be submitted to the Municipal Finance Bureau. The Municipal Finance Bureau shall conduct targeted performance evaluations at appropriate times based on departmental performance evaluations, linking the results of performance evaluations to improvements in budget management and the allocation of annual budget funds, thereby achieving the integration of budget and performance management.
Article 14. Entities applying for special funds must truthfully submit relevant materials in accordance with regulations and shall not fabricate information or fraudulently obtain or embezzle special funds. For entities that submit false materials or fraudulently obtain or embezzle incentive and subsidy funds, the finance department shall recover the funds, impose severe penalties in accordance with relevant regulations such as the "Regulations on the Penalties for Fiscal Law Violations" (State Council Order No. 427), and report the violation information to the credit platform to include them in the scope of joint disciplinary actions for dishonesty.Entities with severe credit violations or those publicly reprimanded by the municipal government shall be ineligible to apply for the incentive and subsidy funds specified in these Measures for projects undertaken in the current year and the following two fiscal years.
Chapter V Supplementary Provisions
Article 15 To ensure policy continuity, projects actually undertaken between January 1, 2019, and December 31, 2020, shall be reported for rewards in 2022. Entities that have already received rewards under the “Notice of the General Office of the Luoyang Municipal People’s Government on Issuing the Special Measures for Rewards and Subsidies for the Development of the Luoyang Capital Market” (Luo Zheng Ban [2019] No. 70) shall not receive duplicate rewards.
Article 16 The private equity funds and investment companies referred to in these Measures must be legally registered with the industrial and commercial authorities and be filed with the National Development and Reform Commission, the Asset Management Association of China, or the Securities Association of China. The recipient of the reward for a private equity fund shall be the fund management company of that fund, and the fund management company must be registered with the Asset Management Association of China.
Article 17 The Luoyang Municipal Financial Work Bureau shall be responsible for interpreting these Measures.
Article 18 These Measures shall take effect from the date of issuance and remain valid for three years, covering projects actually implemented between January 1, 2019, and December 31, 2023. The original “Notice of the Luoyang Municipal People’s Government Office on Issuing the Special Incentive and Subsidy Measures for the Development of Luoyang’s Capital Market” (Luo Zheng Ban [2019] No. 70) is hereby repealed.
