Shenzhen releases 20 articles promoting corporate listing! Goal: Over 600 by 2025!

Release time:Apr 16, 2024 18:29 PM

On September 7th, Shenzhen released "Several Measures to Further Promote the Listing of Enterprises and the High Quality Development of Listed Companies". The "Several Measures" proposed 20 policy measures from four aspects: expanding the resources of listed reserve enterprises, improving the level of enterprise listing services, gathering element resources to support listed companies to become stronger, better, and larger, and establishing an assessment and service mechanism for enterprise listing work, providing strong impetus and guarantees for the listing of enterprises and the high-quality development of listed companies.

Support overseas listing of enterprises and the return of high-quality red chip enterprises to A-shares

The "Several Measures" propose 20 policy measures from four aspects: expanding the resources of listed reserve enterprises, improving the level of enterprise listing services, gathering essential resources to support listed companies to become stronger, better, and larger, and establishing an assessment and service mechanism for enterprise listing work.

Among them, in terms of expanding the reserve resources for enterprise listing, the "Several Measures" point out that the role of equity investment funds in nurturing should be fully utilized. Promote the construction of international venture capital and venture capital centers, and provide funding to various eligible venture capital and venture capital institutions in accordance with relevant policies. Actively strive to implement tax incentives for entrepreneurial investment, equity investment, and other institutions in areas such as Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation Zone and Hetao Shenzhen Hong Kong Science and Technology Innovation Cooperation Zone, accelerate the gathering of private equity and venture capital institutions, and explore and cultivate more resources for listed reserve enterprises.

Support large and medium-sized technology enterprises to establish enterprise venture capital funds, improve the layout of upstream and downstream industrial chains, and promote collaborative innovation in industries. Restructuring the government guidance fund system, leveraging various social capital to participate in the establishment of the "20+8" industrial cluster fund, focusing on attracting and landing key projects in the industrial cluster, and cultivating market entities. Promote pilot foreign equity investment enterprises to use foreign capital to participate in the cultivation of high-quality enterprises.

In addition, in leveraging the foundational functions of the regional equity market, we will support the establishment of a "specialized, refined, special, and new" special board in the Shenzhen regional equity trading market, promote the inclusion of innovative small and medium-sized enterprises and "specialized, refined, special, and new" small and medium-sized enterprises in the cultivation of the special board, and manage them in a hierarchical manner according to the incubation layer, regulatory layer, and cultivation layer, to promote the formation of a green channel for the transformation of the regional equity market to the third board for listing.

In terms of improving the level of enterprise listing services, promote multi-level market listing financing for enterprises. Support eligible enterprises to go public overseas, support high-quality red chip enterprises to return to A-share listing, and support listed companies to split their subsidiaries for domestic and foreign listings. Support state-owned enterprises to deepen mixed ownership reform and promote the listing of different types of high-quality state-owned enterprises in corresponding domestic sectors. Attracting high-quality enterprises from other regions to list on the Shenzhen Stock Exchange and guiding listed companies to raise funds to invest more in Shenzhen. Give full play to the role of the Science and Technology Exchange Center of the Shenzhen Stock Exchange, provide comprehensive services throughout the entire chain from IP to IPO, and promote efficient connectivity between the capital market and the technology market.

It is worth mentioning that the "Several Measures" also propose to support enterprises to go public overseas with real gold and silver. For example, promoting listed companies to issue global depositary receipts for overseas financing and attracting high-quality overseas listed companies to issue Chinese depositary receipts on the Shenzhen Stock Exchange. Provide a maximum reward of 1.5 million yuan to those who plan to go public within the country and complete the shareholding reform and listing guidance; Provide a maximum reward of 800000 yuan to those listed overseas; For those who are listed on the New Third Board for the first time, a maximum reward of 500000 yuan will be given, and for those who enter the innovation layer, a maximum reward of 300000 yuan will be given. Encourage each district to give corresponding rewards to listed or listed enterprises and intermediary service institutions.

In supporting listed companies to become stronger, better, and larger, we encourage them to promote industrial upgrading through mergers and acquisitions. Encourage banks and other financial institutions to innovate their products, provide comprehensive financing support such as "loans+external direct investment" and merger and acquisition loans, and jointly participate in the refinancing and merger and acquisition restructuring of listed companies. Support listed companies to fully utilize capital market tools such as stock issuance, bond issuance, asset securitization, real estate investment trusts, and global depositary receipts for financing, carry out mergers and acquisitions around the upstream and downstream of the industrial chain, invest in the real economy, and promote the development of industries from agglomeration to agglomeration.

Goal: By the end of 2025, there will be over 600 domestic and foreign listed companies in Shenzhen

The Shenzhen Municipal Bureau of Industry and Information Technology stated that promoting enterprises to connect with multi-level capital markets for listing and financing can not only provide financial support for the development and growth of enterprises, but also help standardize business management mechanisms, improve governance structures, and improve operational quality. It is of great significance for Shenzhen to accelerate the development of innovative enterprises, accelerate the clustering of strategic emerging industries, cultivate new drivers of industrial development, and achieve high-quality economic development.

It is reported that since the implementation of the small and medium-sized enterprise listing cultivation project in Shenzhen, policies and measures have been introduced to promote enterprise listing and improve the quality of listed companies, forming a relatively systematic and comprehensive policy system. The listing cultivation work has achieved significant results. As of the end of August 2023, there were a total of 555 listed companies both domestically and internationally in Shenzhen, of which 421 were listed on A-shares domestically and 134 were listed overseas. However, there are still issues such as a slowdown in the growth of listed companies, insufficient reserve resources for listing, the need for further improvement in the quality of listed companies, and the need for further optimization of policy measures. Therefore, it is necessary to integrate, refine, and optimize the effective policy measures currently in practice, combining policies and measures to promote growth and optimize stock. Through institutional revisions and policy innovation, difficulties, pain points, and obstacles in the entire process of enterprise listing can be solved, forming targeted and actionable policy measures to further promote enterprise listing and high-quality development of listed companies.

Data shows that there are currently over 550 listed companies both domestically and internationally in Shenzhen. In 2022, Shenzhen added 42 new domestic and foreign listed companies. Among major and medium-sized cities in China, Shenzhen ranked first in the number of listed companies on the Shenzhen Stock Exchange for 32 consecutive years. The "Several Measures for Further Promoting the High Quality Development of Enterprise Listing in Shenzhen" released in November last year also proposed a goal: by the end of 2025, the number of domestic and foreign listed companies in the city will exceed 600, new initial public offering and refinancing funds will exceed 300 billion yuan, and the cumulative number of listed reserve enterprises will exceed 3000. Among the listed companies, 3-5 new companies with a market value of 100 billion yuan and 10-20 new companies with a market value of 10 billion yuan have been added, with over 50% of the new listed companies being specialized, refined, and innovative.

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