On April 12th, the capital market welcomed the new "Nine National Guidelines," and the Shanghai Stock Exchange revised its supporting business rules and publicly solicited opinions, proposing to raise the listing conditions for the main board. According to the revised "Stock Issuance and Listing Review Rules" by the Shanghai Stock Exchange, the main board's net profit, net cash flow from operating activities, operating income, and market value indicators have been increased.
Specifically: First, the net profit indicator for the first set of listing standards has been raised from 150 million yuan to 200 million yuan for the cumulative net profit over the most recent three years, from 60 million yuan to 100 million yuan for the net profit in the most recent year, from 100 million yuan to 200 million yuan for the cumulative net cash flow from operating activities over the most recent three years, and from 1 billion yuan to 1.5 billion yuan for the cumulative operating income over the most recent three years.
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Second, the net cash flow from operating activities indicator for the second set of listing standards has been raised from 150 million yuan to 250 million yuan for the cumulative net cash flow over the most recent three years.
Third, the expected market value indicator for the third set of listing standards has been raised from 8 billion yuan to 10 billion yuan, and the operating income indicator for the most recent year has been raised from 800 million yuan to 1 billion yuan.
At the same time, the "Stock Issuance and Listing Review Rules" further clarify the positioning of the main board, with detailed requirements for the issuer's industry status.
The revised main board listing conditions are proposed to be implemented from the date of the release of the new listing rules. Companies that have not yet passed the review by the Listing Committee should apply the new listing conditions; those that have passed the review should apply the listing conditions before the revision. For companies that have not passed the review by the Listing Committee and do not meet the new listing conditions, the Shanghai Stock Exchange will guide them to re-apply for listing on other appropriate boards.
The main board is an important part of the multi-level capital market. In February 2023, the Shanghai Stock Exchange revised the "Stock Listing Rules" for the main board, setting up multiple and diversified listing indicators, highlighting the characteristics of large-cap blue-chip stocks, and focusing on supporting high-quality enterprises with mature business models, stable operating performance, large scale, and industry representativeness.
"As the reform and development deepen, all parties have higher demands and expectations for promoting the coordinated development of the multi-level capital market, further improving the quality of listed companies, and better serving the high-quality development of the real economy. It is necessary to timely evaluate and improve the relevant institutional arrangements based on practical situations," said the Shanghai Stock Exchange.
At the same time, the Shanghai Stock Exchange will also revise the "Interim Provisions on the Issuance and Listing Application and Recommendation of Science and Technology Innovation Board Companies" to further improve the positioning and grasping standards of the Science and Technology Innovation Board, supporting and encouraging "hard technology" companies to issue and list on the Science and Technology Innovation Board.Additionally, the newly revised "Stock Issuance and Listing Review Rules" also focus on solidifying the reporting responsibilities of issuers and others, the "gatekeeper" responsibilities of intermediaries, and the primary responsibility of the exchange for review.
Specifically, it further improves the quality of reporting to prevent "sick reporting." On the basis of the original provisions for not accepting reports twice within a year, it adds "withdraw upon inquiry" and "withdraw upon supervision" scenarios, and sets a six-month reporting interval. Intermediaries are required to fully utilize methods such as capital flow checks, customer and supplier penetration checks, and on-site verification to ensure that financial data conforms to the actual operating conditions, and to make these requirements a key focus of the review. The on-site supervision mechanism is improved, further enriching the scenarios of random selection and on-site supervision in the event of significant post-meeting matters. The relevant supporting mechanisms have been further improved to enhance the exchange's ability to review and control. For those with obvious flaws in the quality of information disclosure, the exchange terminates the review in accordance with regulations, and strengthens the punishment for related parties cooperating with the issuer in engaging in financial fraud and other illegal and irregular activities.