Original Title: Suzhou’s Implementation Guidelines for Promoting High-Quality Development Through Corporate Utilization of Capital Markets (2023–2025)

To implement the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council regarding the comprehensive deepening of capital market reforms, to help more enterprises seize the opportunities presented by the comprehensive registration-based system reform, to better leverage the role of the capital market in supporting the development of industrial innovation clusters, and to increase the proportion of direct financing for enterprises in our city, these Implementation Opinions are formulated in accordance with the guiding principles of documents such as the “Guiding Opinions on Promoting the Development of Industrial Innovation Clusters in the Digital Economy Era in Suzhou” (Su Wei Fa [2022] No. 1), and in light of the actual conditions of our city.

I. Guiding Principles

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will focus on the iterative upgrading of our city’s industries and the enhancement of cluster innovation capabilities. We will firmly seize the historic opportunity presented by the comprehensive deepening of capital market reforms, continuously optimize the service ecosystem for local enterprises seeking listings, and promote higher-quality development through market access.We will fully leverage the pivotal role of the capital market in driving technological innovation, advancing the transition from old to new growth drivers, and promoting the transformation and upgrading of the real economy. We will foster the deep integration of innovation chains, industrial chains, capital chains, and talent chains to build a model city for industrial capital aggregation, thereby providing robust capital support for the modernization of a “strong, prosperous, beautiful, and high-quality” New Suzhou.

II. Main Objectives

— Channel “capital resources” to effectively support the cultivation of emerging enterprises. Aggregate and develop private equity investment funds to build the optimal region for venture capital. Cultivate a group of locally based private equity investment institutions with industry-leading advantages and national recognition. By the end of 2025, the assets under management of private fund managers registered with the China Securities Investment Fund Association will exceed 700 billion yuan. The incubation and cultivation role of equity investment funds will be significant, with equity investment funds participating in over 80% of newly listed companies.

— Implement the “Forest Cultivation Plan” to maintain a leading position in the number of listed companies. Strengthen a tiered and sustainable pipeline of enterprises preparing for listing, dynamically maintaining a pool of over 500 pre-IPO companies (including more than 100 municipal-level key pre-IPO enterprises). Strive to have over 300 listed companies citywide by the end of 2025, with the number of domestic-listed companies remaining among the highest in the country.

—Advance the “Towering Trees Plan” to highlight the leading role of listed companies. Significantly improve the quality and sustainable development of listed companies, effectively enhance their technological content and core competitiveness, and further standardize governance capabilities and internal control systems. Leverage the capital market to cultivate leading enterprises within industrial innovation clusters, aiming to raise nearly 100 billion yuan annually through the capital market, and achieve a cumulative total of at least five listed companies with a market capitalization of 100 billion yuan by 2025.

——Building a “Forest Ecosystem” to Improve the Capital Market Service System. We will strengthen organizational leadership, optimize and integrate government services, and digitally empower the comprehensive capital market service system. We will enhance the comprehensive engagement of leading service institutions in Suzhou’s capital market and cultivate a group of specialized, brand-name local capital market service teams.

III. Channeling “Capital Flow” to Strengthen the Allocation of Capital Resources

1. Promote more efficient leadership by state-owned capital. Accelerate the development of the Suzhou Innovation Investment Group, building a first-class domestic innovation investment platform with full-cycle technology investment as its pillar. Establish the Suzhou Industrial Innovation Cluster Development Fund to drive the coordinated development of various funds.Further strengthen the coordinated development of municipal equity investment, forming a “city-county (district)” equity investment linkage model. Promote the operation and development of guiding funds in each county-level city (district) in accordance with the principles of “government guidance, market operation, scientific decision-making, and risk prevention,” leveraging more social capital to support the development of our city’s industrial innovation clusters. (Responsible Units: Municipal Finance Bureau, governments (administrative committees) of each county-level city <district>, Suzhou Innovation Investment Group)

2. Attract social capital to aggregate at a higher level.Conduct “targeted investment promotion” toward leading private equity investment firms, strengthen cooperation with national and provincial policy-based funds to establish large-scale funds, and attract and foster the clustering and development of angel investment funds, venture capital funds, S-funds, M&A funds, PIPE funds, QFLP funds, and QDLP funds in Jiangsu, thereby forming an equity investment system covering the entire lifecycle of enterprises—from seed stage to startup, growth, and maturity.Diversify exit channels for private equity investment funds and support eligible institutions in applying for pilot programs allowing in-kind stock distributions from private equity investment funds. Encourage eligible regions to establish private securities investment fund clusters and provide a one-time reward of up to 3 million yuan to newly established private securities investment institutions that meet the criteria. (Responsible Units: Municipal Financial Regulatory Bureau, Municipal Development and Reform Commission, Municipal Finance Bureau, and governments (or administrative committees) of all county-level cities and districts)

3. Promote the high-quality development of the capital ecosystem. Support regions with mature conditions in building nationally renowned equity investment cluster demonstration zones, providing comprehensive “one-stop” services to attract equity investment entities to establish and take root there. Fully leverage the service, self-regulatory, and coordinating roles of industry associations such as the Suzhou Fund Industry Association to promote enhanced communication, resource sharing, and collaborative cooperation among equity investment institutions.Establish the Suzhou Private Equity Fund Comprehensive Service Platform to optimize the market access environment for private equity investment funds in our city, improve industry governance mechanisms, and prevent risks such as “fake private equity” and disorderly capital expansion. (Responsible units: Municipal Financial Regulatory Bureau; governments and administrative committees of all county-level cities and districts)

IV. Implement the “Forest Cultivation Plan” to Strengthen the Development of a Pipeline of Potential Listed Companies

4. Proactively Identify Potential “Golden Seeds.” Industrial departments and county-level cities (districts) will focus on gazelle enterprises, unicorn-in-the-making enterprises, enterprises led by innovation and entrepreneurship leaders, and specialized, refined, distinctive, and innovative “Little Giant” enterprises. They will dynamically identify and screen a group of enterprises with a clear intention to go public and that are expected to meet the primary conditions for domestic and overseas listings, and promote their inclusion in the municipal and county (district) level pools of enterprises in the pipeline for listing.Financial regulatory authorities will rely on a working mechanism of “routine filing, timely review, and dynamic management” to provide categorized guidance and follow-up services to these prospective listed companies. (Responsible Units: Municipal Financial Regulatory Bureau, Municipal Bureau of Industry and Information Technology, Municipal Science and Technology Bureau; governments and administrative committees of all county-level cities and districts)

5. Targeted Cultivation of Promising Listing Candidates. Support localities in establishing industrial parks for listed companies, encourage the assignment of dedicated listing service specialists to provide “one-on-one” “hand-holding” services, and actively promote the “nursery project” model in industrial parks.At the municipal level, the Suzhou Financial Development Service Center will coordinate city-district collaborative cultivation and guidance activities. These efforts will include publicizing relevant capital market laws, regulations, and policy trends; guiding enterprises to scientifically plan their target market segments and listing pathways; assisting enterprises in connecting with service providers; and ensuring that institutions provide high-quality listing advisory services in compliance with laws and regulations. Relevant units may provide appropriate subsidies for eligible training activities. (Responsible Units: Municipal Financial Regulatory Bureau, Suzhou Financial Development Service Center; governments and administrative committees of all county-level cities and districts)

6. Strengthen support for enterprise listings. Support eligible high-quality enterprises in listing overseas and encourage high-quality red-chip enterprises to return to list on the A-share market. For enterprises that successfully complete an IPO on major domestic or international capital markets and meet certain conditions, each county-level city (district) may provide a reward of no less than 5 million yuan. For enterprises that achieve listing on the National Equities Exchange and Quotations (NEEQ), county-level cities (districts) may provide a reward of no less than 500,000 yuan.High-quality domestic A-share listed companies that relocate their registered offices to Suzhou and use the raised funds for Suzhou’s economic development shall be eligible for listing incentive policies on a comparable basis. (Responsible Units: Municipal Financial Regulatory Bureau, governments and administrative committees of each county-level city and district)

7. Effectively implement tax incentive policies. Strengthen publicity of general tax policies and provide personalized guidance on tax-related matters to enhance enterprises’ awareness of tax compliance. For eligible small and medium-sized high-tech enterprises, individual shareholders may apply for installment payments of personal income tax arising from the capitalization of undistributed profits, retained earnings, and capital reserves. Implement various tax incentive policies, including additional deductions for R&D expenses and tax benefits for mergers and acquisitions. (Responsible Units: Suzhou Municipal Tax Bureau, Industrial Park Tax Bureau)

V. Advancing the “Tian Plan” to Guide Listed Companies Toward Excellence and Strength

8. Support listed companies in attracting high-end resources. Support listed companies in fully utilizing policies in accordance with the “Several Measures to Promote the Excellence and Strength of Suzhou-Listed Companies,” and achieve high-quality development by attracting high-end talent, enhancing innovation capabilities, leading industrial development, and strengthening brand building. Encourage listed companies to accelerate the pace of intelligent transformation and digital reform, and develop in the directions of high-end, branded, intelligent, and green development. (Responsible Units: Member units of the Suzhou Leading Group for Promoting High-Quality Development of Enterprises through Capital Markets)

9. Support listed companies in conducting mergers and acquisitions (M&A) and restructuring. For M&A and restructuring transactions by listed companies that meet the China Securities Regulatory Commission’s criteria for major asset restructuring, as well as for acquisitions of local non-affiliated unlisted enterprises where the transaction value exceeds twice the net assets of the target, each county-level city (district) may provide a one-time reward equivalent to 5‰ of the actual transaction amount, with a maximum support of 10 million yuan. Encourage various financial institutions to innovate products tailored to listed companies’ M&A and restructuring needs, providing comprehensive financing support such as investment-loan linkage and M&A loans.(Responsible Units: Municipal Financial Regulatory Bureau, Suzhou Branch of the China Banking and Insurance Regulatory Commission, and governments (administrative committees) of all county-level cities (districts))

10. Support listed companies in effectively utilizing capital market financing instruments.When listed companies conduct refinancing through capital market instruments such as rights issues, public offerings, the issuance of preferred shares, convertible bonds, corporate bonds, asset-backed securities (ABS), global depositary receipts (GDRs), and real estate investment trusts (REITs), each county-level city (district) may grant a reward equivalent to 5‰ of the portion of funds raised invested in Suzhou for each transaction, with the annual reward for a single enterprise not exceeding 2 million yuan.(Responsible Units: Municipal Financial Regulatory Bureau; governments and administrative committees of all county-level cities and districts)

11. Enhance the positive image of the “Suzhou Sector” in the capital market. Guide listed companies to strengthen public opinion management, improve their ability to respond to public sentiment, and enhance reputation protection. Fully leverage the role of news media as a bridge and link to conduct truthful, accurate, comprehensive, and objective news reporting, fostering a favorable atmosphere that supports enterprise listings.Establish a fast-track channel for receiving and handling reports of online infringement; implement a project for monitoring and protecting corporate-related public opinion; intensify efforts to address false reports and fake news regarding listed companies and pre-IPO enterprises; and support listed companies in safeguarding their legitimate rights and interests in accordance with the law. (Responsible Units: Municipal Publicity Department, Municipal Cyberspace Administration Office, Municipal Public Security Bureau, Municipal Financial Regulatory Bureau)

VI. Fostering a “Forest Ecosystem” to Improve the Capital Market Service System

12. Strengthen the capabilities of market service institutions. Actively attract leading domestic and international third-party intermediaries—such as securities firms, accounting firms, and law firms—to establish operations in Suzhou. Guide securities firms with branches in the city to upgrade their operations and strengthen their investment banking teams. Encourage market institutions based in Suzhou, including securities firms and equity investment firms, to leverage their professional expertise by hosting influential high-level forums, exchange salons, and investment strategy meetings in Suzhou to facilitate integration and collaboration across upstream and downstream industrial chains.Leverage the role of the Suzhou Listed Companies Service Alliance to provide multi-tiered, comprehensive services to listed companies. (Responsible Units: Municipal Financial Regulatory Bureau, Municipal Finance Bureau, Municipal Justice Bureau, Municipal Development and Reform Commission, Suzhou Venture Capital Group)

13. Strengthen and optimize local securities firms. Support local securities firms in enhancing their capital strength, improving their business chains, and elevating their professional capabilities to serve the development of the local capital market.Cultivate local accounting and law firms with securities business qualifications. Local Suzhou accounting firms that enter the top 50 or top 100 for the first time in the annual national comprehensive evaluation of accounting firms published by the Chinese Institute of Certified Public Accountants (CICPA) will receive one-time rewards of up to 1 million yuan and 500,000 yuan, respectively.Legal service institutions with annual operating revenues of 50 million yuan, 80 million yuan, or 100 million yuan or more will be granted one-time rewards of up to 500,000 yuan, 800,000 yuan, and 1 million yuan, respectively. (Responsible Units: Municipal Finance Bureau, Municipal Justice Bureau)

14. Strengthen the development of service platforms for the capital market. Fully leverage the resources of the Shanghai and Shenzhen Stock Exchanges, the Beijing Stock Exchange, and the National Equities Exchange and Quotations (NEEQ) in Suzhou to build a phased, multi-tiered, and comprehensive service system, thereby enhancing the professional capabilities of listed companies and pre-IPO enterprises in accessing the capital market. Relying on platforms such as the Jiangsu Enterprise Hong Kong IPO Incubation Base, strengthen communication and collaboration with overseas stock exchanges such as the Hong Kong Stock Exchange.Leverage the roles of the China (Suzhou) Intellectual Property Protection Center and the Enterprise Listing Intellectual Property Service Center to guide listed companies and pre-IPO enterprises in strengthening their intellectual property strategy and management. (Responsible Units: Municipal Financial Regulatory Bureau, Municipal Market Regulation Bureau <Intellectual Property Bureau>, governments <administrative committees> of all county-level cities <districts>)

VII. Improve Working Mechanisms and Enhance the Service Efficiency of Government Departments

15. Strengthen organizational leadership and implementation. Optimize and adjust the membership of the Suzhou Leading Group for Promoting High-Quality Development through Enterprise Utilization of Capital Markets by including listed companies within the scope of coordination and services and adding industry-specific regulatory authorities as members. The people’s governments (administrative committees) of each county-level city (district) shall adjust and improve corresponding mechanisms, designate departments to routinely monitor the development dynamics of listed companies and key prospective listed companies, regularly address relevant challenges, and promptly report major matters requiring coordination and resolution to the municipal-level Leading Group.(Responsible Unit: Suzhou Leading Group for Promoting High-Quality Development of Enterprises through Capital Markets)

16. Optimize government service mechanisms. Explore a “one-stop compliance review for IPO” model, replacing the issuance of administrative compliance certificates with credit information reports. Provided that all actions are lawful and compliant, establish “green channels” for matters related to enterprise IPOs and follow-on financings—including project approvals, social security, land use, environmental impact assessments, market regulation, fire safety, and property rights confirmation—to ensure priority processing.For specific historical legacy issues, the local government where the enterprise is registered shall adopt a “case-by-case, enterprise-specific” approach, resolving such issues in a timely and appropriate manner in accordance with the law, with an attitude of respecting history and resolving problems. For listed companies and pre-IPO enterprises with minor instances of non-compliant business operations, appropriate measures such as education and rectification within a specified timeframe shall be taken to promote lawful and standardized business operations, avoiding the practice of “substituting penalties for management.”(Responsible Units: Member units of the Suzhou Leading Group for Promoting High-Quality Development through Enterprise Utilization of Capital Markets)

17. Improve the assessment and incentive mechanisms. Evaluate the performance of county-level city (district) governments in promoting enterprise listings and the utilization of capital markets by listed companies, and incorporate the evaluation results into the high-quality development assessment system for county-level cities (districts). Regions that perform well in meeting annual targets and tasks shall be recognized and incentivized through public commendation.Conduct a “Brokerage Contribution” service evaluation to encourage brokerages to continuously increase their resource support for Suzhou projects. Guide county-level cities (districts) to actively participate in the construction of Jiangsu Province’s High-Quality Development Demonstration Zone for Listed Companies; for regions with outstanding achievements, promptly promote their exemplary practices. (Responsible Units: Municipal Financial Regulatory Bureau, Municipal Party Committee Assessment Office)

These Implementation Guidelines shall take effect upon issuance and, unless otherwise specified, shall remain valid until December 31, 2025.