Previously, we discussed the new issuance system of the Growth Enterprise Market (GEM). Yesterday, the China Securities Regulatory Commission (CSRC) officially announced the decision to amend the "Measures for the Administration of the Issuance Examination Committee of the China Securities Regulatory Commission" and the "Measures for the Administration of Sponsor Business of Securities Issuance and Listing", which will be implemented on June 14. The amendments to these two measures are an important step in improving the institutional framework of the GEM market. The official release of the two supporting rules for the GEM - anticipated by investors - also signals the imminent launch of the GEM.
A CSRC official introduced that during the formal announcement period, the revised content remained unchanged from the draft for public comments, and the collected opinions will be reflected in the subsequent formation plan of the Issuance Examination Committee (IEC) and relevant arrangements for sponsor institutions.
According to the amendment decision, for companies making their initial public offering (IPO) and listing on the GEM, the continuous supervision period for sponsor institutions is the remaining time of the year of listing and the following three complete accounting years; for GEM listed companies issuing additional shares or convertible corporate bonds, the continuous supervision period is the remaining time of the year of securities listing and the following two complete accounting years. The continuous supervision period is one year longer than that of the main board.
The amendment decision points out that the CSRC will establish the Issuance Examination Committee for the main board market, the Issuance Examination Committee for the GEM, and the Mergers and Acquisitions Restructuring Examination Committee. There are special provisions regarding the arrangement of IEC members in the new measures. The GEM IEC consists of 35 members, including 5 members from within the CSRC and 30 members from outside the CSRC, with 10 more members than the main board IEC. Members of the main board IEC, GEM IEC, and M&A Restructuring Committee cannot concurrently hold positions in other committees.
A CSRC official revealed that after the modification of the two measures, a formation plan for the GEM IEC will be formulated, and IEC members will be selected through a certain procedure. The selection of IEC members will be publicly disclosed. Additionally, compared to the main board market, the GEM market will have relaxed regulations regarding how many IPO projects a sponsor representative can handle.
After the issuance of management measures, sponsor measures, IEC measures, and listing rules, the GEM market rule system still awaits the release of documents such as trading rules, qualified investor thresholds, and specific rules for submission files.