CHINA: An Introduction to Capital Markets: Debt & Equity (PRC Firms)

Regulatory Commission (CSRC) released the Three-Year Action Plan for Promoting the Quality of Listed Companies (2022-2025), aiming to improve the matching of listed companies with the national economy from the export side, financing side and import side so as to significantly enhance the market ecology and improve the regulatory system. The overall quality of listed companies will reach a new level.

Breakthroughs have been made in an opening-up of the system-based financing channel for overseas, and achievements have been made in audit regulation cooperation between China and US.

The improvement of overseas listing of enterprises and the building of regulatory systems has been accelerated, and breakthroughs have been made in a system-based expansion. On 24 December 2021, in order to promote the standardised and healthy development of enterprises using overseas capital markets and support enterprises to list overseas in compliance with the law, the CSRC, together with relevant departments of the State Council, proposed amendments to the Special Provisions of the State Council on Overseas Offering of Shares and Listing of Joint Stock Companies (State Council Decree No. 160), and drafted the Regulations of the State Council on Overseas Offering and Listing of Securities by Domestic Enterprises and the Measures for the Administration of Overseas Offering and Listing of Securities by Domestic Enterprises, to seek public comments.

The Special Administrative Measures for Access of Foreign Investment (Negative List) (2021 Edition) jointly issued by the National Development and Reform Commission (NDRC) and the Ministry of Commerce came into effect on 1 January 2022. On 15 February 2022, the Measures for Cybersecurity Review (2021) was also implemented. On 2 April 2022, the CSRC, together with the Ministry of Finance (MOF), the National Administration of State Secrets Protection and the National Archives Administration of China, issued the Provisions on Strengthening the Confidentiality and Archives Administration Related to the Overseas Securities offering and Listing by Domestic Enterprises (Draft for Comments), providing clearer guidelines for the confidentiality and archives administration related to overseas listing and clarifying the main responsibility for the information security of listed companies, improving cross-border regulatory cooperation arrangements for a safe and efficient cross-border regulatory cooperation.

The channel for overseas listings has been broadened. In 2022, the first batch of global depository receipts (GDRs) of Chinese and Swiss securities markets were listed. The CSRC released the Provisions on the Supervision and Administration of Depository Receipts under the Stock Connect Scheme between Domestic and Overseas Stock Exchanges, expanding and optimising the framework of the Shanghai-London Stock Connect by adding Shenzhen Stock Exchange in terms of domestic market and Switzerland and Germany stock exchanges in terms of overseas market, allowing eligible overseas listed companies to issue financing-type Chinese depositary receipts domestically, and optimising arrangements in terms of ongoing supervision. The number of A-share listed companies in China issuing GDRs in overseas markets has reached a record high, and the channel of overseas listing and financing development for Chinese domestic enterprises gets wider and wider.

Achievements have been made in audit regulatory cooperation between China and US. On 26 August 2022, the CSRC and the MOF signed an audit regulatory cooperation agreement with the Public Company Accounting Oversight Board (PCAOB), in the consideration of national security and corporate interests, with "cross-border audit regulatory cooperation" as the core element. On 15 December 2022, the PCAOB issued a report confirming the completion of inspections and investigations of accounting firms in Mainland China and Hong Kong in 2022 and revoking the determinations made to relevant firms in 2021, marking a positive outcome of the China-US audit regulatory cooperation and releasing a positive signal for Chinese companies to list in the US.

The registration system for issuance and review of bonds and the system for supporting debt financing by private enterprises have been improved.

The basic system of the bond market and the registration system for the issuance and review of bonds have been improved. Since the Securities Law (revised in 2019) came into effect in 2020, the registration system has been carrying out the issuance and review of corporate credit-based bonds (mainly including enterprise bonds, corporate bonds and debt financing instruments of non-financial enterprises), enhancing the efficiency and predictability of bond issuance and review, and stimulating the vitality of market innovation and development. The Administrative Measures for Information Disclosure for Corporate Credit-based Bonds came into effect on 1 May 2021 and was jointly released by the NDRC and the CSRC, unifying for the first time the information disclosure requirements for all aspects of corporate credit-based bonds and clarifying that the CSRC shall determine and administratively punish violations of information disclosure and carry out unified enforcement in the bonds market.

In order to deepen the reform of the corporate bond registration system and promote the high-quality development of the bond market, the CSRC issued the Guiding Opinions on Deepening the Reform of the Corporate Bond Registration System (Draft for Comments) and the Guiding Opinions on Improving the Practice Quality of Corporate Bond Business by Agencies under the Registration System (Draft for Comments) to seek public comments on 18 November 2022, proposing 12 measures in four aspects, namely optimizing the review and registration system for corporate bonds, clarifying the responsibilities of issuers and intermediaries, strengthening the management of the duration, and cracking down on violations.

The system for supporting debt financing by private enterprises has been improved, and the quality and efficiency of the bond market serving the real economy has been enhanced. The Government Work Report of 2022 stated the improvement of the system for supporting debt financing by private enterprises, and a series of measures in bonds market supporting private enterprises was launched thereafter. In March 2022, the National Association of Financial Market Institutional Investors (NAFMII) issued a notice stating that it would continue to provide good debt financing services to private enterprises. Later in May, on the basis of the supporting policies released by the People's Bank of China, the NAFMII organised China Bond Insurance Co, Ltd to set up the CSIPB, and launched a full-guarantee system thereafter. In November, the NAFMII announced the extension and expansion of the financing supporting instruments for private enterprises by means of guarantee and credit enhancement, the creation of credit risk mitigation certificates, direct purchase of bonds, etc, to support private enterprises to issue bonds for financing purposes. In addition, focusing on key areas, the inter-bank market upgraded science and technology innovation notes, innovatively launched transformation bonds, and actively promoted the landing of special bonds for energy supply. In March 2022, the CSRC announced that it would launch seven policy measures to promote the system for supporting debt financing by private enterprises and enhance the quality and effectiveness of services for private economic development. In May, the special support programmes for debt financing by private enterprises and for corporate bonds of technology innovation companies were implemented in the bond market of relevant exchange.

【注册制架构初步经受住了市场考验，资本市场支持科技创新能力明显提升】

以信息披露为核心的注册制架构初步经受住了市场考验，配套制度和法治供给不断完善。2019年上交所设立科创板并试点注册制，2020年6月深交所创业板完成注册制改革，2021年9月北交所设立并实施注册制，目前除上交所以及深交所的主板外，其他板块均已实施注册制。依据“十四五”规划、2021年中央经济工作会议和2022年政府工作报告均对全面实行股票发行注册作出明确部署，全市场实行股票发行注册制的脚步渐行渐近。同时无论按IPO数量及融资额占比来看，实施注册制的科创板和创业板成为A股IPO市场的主力；北交所也实现了稳健发展，上市公司家数在2022年实现翻倍。与之同时，退市改革取得巨大成效，常态化退市机制正在加速形成，A股上市公司被强制退市数量在2022年创年度退市历史新高。

资本市场支持科技创新能力明显提升，上市公司结构发生根本性变化。2022年A股正式迈进“5000+”时代，中国资本市场在经济发展与深化改革的双重助力下，迎来了而立之年后的新里程碑。“5000+”上市公司中，属战略性新兴产业的上市公司占比超五成，资本市场日益成为硬科技、三创四新、专精特新“小巨人”的聚集地。与此同时，提高上市公司质量的举措继续推进。2022年11月，证监会发布《推动提高上市公司质量三年行动方案(2022—2025)》，将从出口端、融资端和入口端三方面入手，提升上市公司群体与国民经济的匹配性，市场生态显著改善，监管体系成熟定型，上市公司整体质量迈上新的台阶。

【制度型对外开放取得新突破，境外上市融资渠道不断拓宽，中美审计监管合作取得积极成效】

企业境外上市及监管制度建设加快完善，制度型对外开放取得新突破。2021年12月24日，证监会为促进企业利用境外资本市场规范健康发展，支持企业依法合规赴境外上市，会同国务院有关部门对《国务院关于股份有限公司境外募集股份及上市的特别规定》（国务院令第160号）提出了修订建议，研究起草了《国务院关于境内企业境外发行证券和上市的管理规定》和《境内企业境外发行证券和上市备案管理办法》，并向社会公开征求意见。国家发改委、商务部联合发布的《外商投资准入特别管理措施（负面清单）（2021年版）》在2022年1月1日起实施；2022年2月15日，《网络安全审查办法（2021）》正式施行；2022年4月2日，中国证监会联合会同中国财政部、国家保密局、国家档案局发布《关于加强境内企业境外发行证券和上市相关保密和档案管理工作的规定（征求意见稿）》，为境外上市涉及的相关保密和档案管理工作提供更加清晰的指引，明确上市公司信息安全主体责任，完善跨境监管合作安排，为安全高效开展跨境监管合作提供制度保障。

境外上市融资渠道不断拓宽。2022年，中瑞证券市场互联互通首批全球存托凭证(GDR)上市。证监会发布境内外证券交易所互联互通业务监管新规，在沪伦通机制框架上进行拓展与优化完善，境内拓展到深圳证券交易所，境外拓展到瑞士、德国市场;允许符合条件的境外上市公司在境内发行融资型中国存托凭证，在持续监管方面也进⾏行了优化安排。中国在海外市场发行GDR的A股上市公司数量创新高，中国境内企业在境外上市融资发展的道路越走越宽广。中美审计监管合作取得积极成效。2022年8月26日，证监会、财政部与美国公众公司会计监督委员会(PCAOB)签署审计监管合作协议，本次审计监管合作协议的签署是出于对国家安全与企业利利益的综合考量，“跨境审计监管合作”为核心要素。2022年12月15日，美国公众公司会计监督委员会发布报告，确认2022年度可以对中国内地和香港会计师事务所完成检查和调查，撤销2021年对相关事务所作出的认定。这标志着中美审计监管合作取得积极成效，对中国企业在美上市释放出积极信号。

【优化债券发行审核注册机制，民企债券融资支持机制持续完善】 

完善债券市场基础制度建设，优化债券发行审核注册机制。自2020年新《证券法》修订发布，公司信用类债券（主要包括企业债券、公司债券和非金融企业债务融资工具）发行审核统一实行注册制，提高了债券发行审核工作效率和可预期性，激发了市场创新发展活力。2021年5月1日实施的《公司信用类债券信息披露管理办法》（由人民银行、国家发改委、证监会联合出台）首次统一了公司信用类债券各环节的信息披露要求，并明确由证监会对公司信用类债券信息披露违法违规行为进行认定和行政处罚，开展债券市场统一执法工作。为深化公司债券注册制改革，推动交易所债券市场高质量发展，证监会于2022年11月18日就《关于深化公司债券注册制改革的指导意见（征求意见稿）》《关于注册制下提高中介机构公司债券业务执业质量的指导意见（征求意见稿）》向社会公开征求意见，提出了优化公司债券审核注册机制，压实发行人和中介机构责任，强化存续期管理，依法打击债券违法违规行为等四个方面的十二条措施，民企债券融资支持机制持续完善，债券市场服务实体经济质效提升。2022年《政府工作报告》提出“完善民营企业债券融资支持机制”，随后债券市场一系列支持民营企业举措落地实施。2022年3月，中国银行间市场交易商协会（以下简称“交易商协会”）发布通知称，将持续做好民企发债融资服务。5月，在人民银行前期支持政策的基础上，交易商协会组织中债信用增进公司主动设立“中债民企债券融资支持工具”（CSIPB），此后还推出了全额担保的方式。11月，交易商协会宣布民营企业债券融资支持工具延期并扩容，通过担保增信、创设信用风险缓释凭证、直接购买债券等方式，支持民营企业发债融资。此外，聚焦关键领域，银行间市场升级推出科创票据、创新推出转型债券，并积极推动能源保供特别债落地。另外交易所债市方面，2022年3月，证监会宣布将推出七项政策措施，推动完善民企债券融资支持机制，增强服务民营经济发展质效；5月，民营企业债券融资专项支持计划和科技创新公司债券先后在交易所债市落地。