Shanghai Securities News China Securities News (Reporter Fan Zimeng) On September 21, 6 units including the Shanghai Local Financial Supervision Bureau jointly issued the “Several Opinions on Supporting the Shanghai Equity Custody Trading Center to Carry out the Pilot Work of Private Equity and Venture Capital Share Transfer” “(hereinafter referred to as “Several Opinions”), to further play the positive role of Shanghai’s regional equity market in serving small, medium and micro enterprises, gradually establish and improve the private fund service system, expand private equity and venture capital exit channels, and promote the regional equity market and The integrated development of private equity funds has continuously improved the service capability of the regional equity market for private equity funds and their post-investment enterprises, and helped to smooth the circulation of financial capital and industrial capital.
Shanghai issued 14 opinions to support Shanghai Equity Custody Center to carry out PE share transfer pilot
In July 2020, the executive meeting of the State Council proposed to “rely on the regional equity market to carry out the pilot program of equity investment and venture capital share transfer”. In April last year, the document of the leading district made it clear that “on the basis of summarizing and evaluating the relevant pilot experience, timely study the establishment of a private equity and venture capital equity share transfer platform in Pudong in accordance with laws and regulations, and promote the development of the secondary trading market for private equity and venture capital equity shares.” . On November 26 last year, the China Securities Regulatory Commission replied that the municipal government agreed to carry out the pilot program in Shanghai, and clearly stated that “the municipal government should coordinate the relevant departments in the city to issue supportive policies in the transfer of state-owned shares, industrial and commercial registration, and the cultivation of enterprise norms.” At the end of last year, the Shanghai Private Equity and Venture Capital Share Transfer (PE Share Transfer) platform was officially launched and started trial operation.
It is understood that several opinions aim at the orderly exit of private equity and venture capital equity, focusing on core links such as state-owned assets transfer, industrial and commercial changes, ownership pledge, industry norms, and organizational guarantees, and enrich and improve relevant policies and measures. Mainly include: clarifying the entry and trading requirements of state-owned assets, smoothing the registration path for share change, striving for legislation to support business innovation, and encouraging more market players to participate.
Judging from the main content, several opinions are divided into 3 parts, divided into 14 specific measures. The purpose of the policy is to unblock exit channels, attract long-term capital, form a positive interaction between all parties in the market, and facilitate high-quality economic development. Concretely grasp three principles: first, strengthen policy guidance and promote integrated development; second, adhere to innovative development and strengthen product empowerment; third, create a development environment and optimize government services.
In terms of specific policy support, there are three measures to support the participation of various subjects. Article 1 supports state-owned and financially funded funds to participate in transactions. Article 2 specifies the basis for the transfer pricing of state-owned funds. Article 3 Encourage overseas funds and various private equity funds to participate in the transfer.
There are 4 measures to strengthen information connection. Article 4 clarifies that government departments cooperate with providing data for information comparison. Article 5 Supports rapid handling of information changes to improve transaction efficiency. Article 6 Expand electronic application scenarios and promote online processing. Article 7 Supports the provision of custody, pledge and other services in accordance with laws and regulations.
There are 4 measures to support fiscal and taxation policies. Article 8 Implement tax reduction and exemption policies in specific regions. Article 9 supports the districts to support the S fund and the newly registered fund. Article 10 provides support to various market institutions participating in the pilot program. Article 11 Encourage participation in innovation award review.
There are three measures to cultivate industry norms. Article 12 Support the incubating and cultivation of enterprises invested by the fund in the Shanghai Stock Exchange Center. Article 13 Support to strengthen cooperation and exchanges with professional organizations. Article 14 Support the holding of forums, training and other activities.