1. What are the target enterprises of the Main Board and the ChiNext of Shenzhen Stock Exchange respectively? How should we choose between the two boards?

With the approval of the CSRC, Shenzhen Stock Exchange started to merge the Main Board and the SME Board in February 2021 so as to form a market pattern mainly comprising the Main Board and ChiNext for the purpose of providing financing services for different types of enterprises at different stages of development. After completion of the merger, the Main Board is positioned to support the financing and development of relatively mature enterprises, helping them become better and stronger, with the offering and listing thresholds unchanged. ChiNext mainly serves the growing innovative and entrepreneurial enterprises, highlighting "innovation, entrepreneurship and creative" and "new technologies, new industries, new forms of business and new models". An enterprise can make a choice between the Main Board and the ChiNext taking into overall consideration its strategic plan and development stage and the positioning and offering requirements of different market boards.

2. What is the impact of the merger of Main Board and SME Board of Shenzhen Stock Exchange on the offering and listing?

After the merger, the offering and listing requirements of the Main Board are consistent with those of the original SME Board and remain unchanged. The securities class of the original SME Board is changed to "A-share of the Main Board", and the corresponding securities code interval is incorporated into that of the Main Board for use. There is no change in the arrangement of offering and review, so the enterprise under review need not provide application documents again and therefore no substantial impact will be made on the offering and listing of the enterprise. If there is any change in the arrangement of subsequent offering and review, the regulatory authority will issue a specific notice.

3. What is the point of reforming ChiNext and piloting the registration-based IPO system? Please describe the main characteristics.

To reform the ChiNext and pilot the registration-based IPO system on the ChiNext is an important move made by the CPC Central Committee to grasp the domestic and international overall situations and coordinate epidemic prevention and control and economic and social development. It is of great significance to implement the new securities law, comprehensively deepen the reform of the capital market, promote the market-oriented allocation of capital elements, enhance the ability of the capital market to serve the real economy, and assist the construction of Guangdong-Hong Kong-Macao Greater Bay Area and the pilot demonstration zone.

Main characters:

First, one “main line”. Adhering to registration-based IPO system as the main line, making institutional innovations in offering, trading, information disclosure, delisting and other aspects, establishing and enhancing a disclosure-based stock offering and listing system, and gaining replicable and importable experience for the reform of other existing market segments.

Second, two "directions". The first direction is being market-driven. Taking IPO as an example, adhering to market-driven IPO, listing, pricing and IPO pace. The second direction is rule of law. Violators of rules will be disciplined by taking timely self-regulatory measures to maintain the orderly operation of the market.

Third, three “coordinates”. Firstly, coordinating the reform of ChiNext and the construction of the multi-tiered capital market system. By improving the positioning of ChiNext, supporting the deep integration of traditional industries with new technologies, new industries, new business forms, and new models, and thus, together with other boards, forming a market pattern in which different boards have different focuses and yet complement each other. Secondly, coordinating reform of new offerings and existing companies. For the first time, synchronized reform of new and existing companies is realized in the registration-based IPO reform of ChiNext, which provides valuable experience for expanding the reform to other boards. Thirdly, coordinating the needs of the financing side and the investing side. On the one hand, this reflects the inclusiveness of the capital market to the real economy. On the other hand, the current investor suitability system of ChiNext remains largely unchanged while risk disclosure is highlighted, which meets investors’ investment needs for ChiNext.