Notice of the People’s Government of Shunyi District of Beijing on Issuing the Methods of Shunyi District for Supporting Enterprises to Go Public

The people’s governments of all towns, local and subdistrict offices, committees, offices and bureaus of the district government, and affiliated institutions,

The Methods of Shunyi District for Supporting Enterprises to Go Public is hereby issued. Please earnestly implement it based on local conditions.

People’s Government of Shunyi District, Beijing

September 14, 2022

(This document is issued in pubic domain)

Methods of Shunyi District for Supporting Enterprises to Go Public

Chapter I General provisions 

Article 1 This document is formulated in accordance with the Opinions of the General Office of the People’s Government of Beijing Municipality on Further Supporting Enterprises to Go Public and in light of the actual situation of Shunyi district for the purposes of (a) implementing the national strategy of innovation-driven development; (b) exerting the capital market’s role in supporting real economy; (c) fostering a cutting-edge and sophisticated industrial system suiting the reality of district development; and (d) establishing the “3+4+1” new industrial layout.

Article 2 In consideration of the enterprises’ growth trajectory and the patterns of listing and development, and following the principle of “policy guidance, standard operation, leading role of enterprises and utilization of market forces”, Shunyi district will work hard on the whole process of listing from pre-listing cultivation, in-process support to post-listing services. Relevant departments and mechanisms will be coordinated and market forces fully utilized to optimize the business environment, truly enhance the enterprises’ capability of direct financing, and increase the number of Shunyi-based enterprises in the multi-tiered capital market. 

Article 3 The term “listed enterprise” in this document refers to enterprises listed in China’s A-share market, well-known oversea capital market, and the National Equities Exchange and Quotations (NEEQ).

The term “enterprise cultivated for listing” in this document refers to enterprises registered and paying taxes in Shunyi district, and basically qualified or with the potential to be qualified for listing in the future.

The term “listing incubator” in this document refers to legal entities registered and paying taxes in Shunyi district, meeting Shunyi’s standards of qualification for listing incubator, and specializing in the cultivation and incubation of and service for listing.

Article 4 The working mechanism of organization and leadership will be improved. Shunyi district will incorporate supporting enterprises to go public as an important item in the agenda of its leading group of financial services, intensify organization and leadership, stress the fulfillment of responsibilities, and strengthen coordination. All departments and localities across the district shall work in coordination to study and solve the problems encountered by enterprises on the way to listing, clear the channels of listing, and accelerate the process of listing. 

Chapter 5 Shunyi district will set up a listing support fund to support the listing of enterprises and the provision of relevant services. The fund will be allocated from the district finance according to annual budgetary arrangement. 

Chapter II Cultivation & incubation 

Article 6 Faster steps shall be taken to build the Beijing headquarters base for listed enterprises. All towns and economic zones across the district, in light of their buildings and premises and local features, are encouraged to attract and gather quality listed enterprises and enterprises cultivated for listing that comply with their development direction. They are also encouraged to release supportive policies suiting the local reality for characteristic and differentiated development.  

Article 7 Greater efforts shall be made to develop a pool of enterprises cultivated for listing. We will intensify the tracking of their listing process, put those enterprises willing to go public and likely to be qualified for listing timely under management, and coordinate relevant departments to support them in getting listed more quickly.

Article 8 Listing incubators are supported to participate in the construction, operation and management of the Beijing headquarters base for listed enterprises.

Listing incubators meeting the following conditions will be granted a startup fund of 500,000 yuan in the year of accreditation. 

(I) Independent legal entities registered and paying taxes in Shunyi district that have a clear shareholding structure and sound organizational structure, operate in accordance with the modern corporate system, the law and regulations, and have no record of major violations against the law and regulations.

(II) The listing incubator has signed a service agreement of no less than two years with the government of what has been recognized as a demonstration area for the headquarters base for listed companies or with a so-recognized economic zone. The listing incubator has at its own disposal a venue of no less than 500m2 that can be used to cultivate and incubate listed companies.

(III) The operating body or core team of the listing incubator possesses the professional ability, experience and advantageous resources for engaging in the financial industry or providing listing services. They are able to provide diverse and all-round services including investment and financing match-making, capital operation and management, financial consulting and service, financing and management training, and related business services. 

Article 9 Listing incubators who have served for two full years of the service agreement and helped list no less than eight enterprises per year during that period will be granted an additional fund of one million yuan.

Chapter III Guidance & incentive

Article 10 Enterprises cultivated for listing that plan to go public at Shanghai Stock Exchange or Shenzhen Stock Exchange will be granted up to 10 million yuan support fund in total by stages as per the important milestones of listing.

(I) A support fund of three million yuan will be granted after the enterprise’s application to China Securities Regulatory Commission Beijing Bureau for tutoring is accepted. 

(II) A support fund of four million yuan will be granted after the enterprise’s listing materials are submitted to the stock exchange or China Securities Regulatory Commission and accepted.

(III) A support fund of three million yuan will be granted after the successful listing.

(IV) This article applies to listed enterprises newly moving to the district. 

Article 11 Enterprises cultivated for listing will be granted a lump-sum support fund of six million yuan if they are successfully listed at well-known oversea capital markets, including the main board of Stock Exchange of Hong Kong, New York Stock Exchange, and London Stock Exchange and the global market of NASDAQ. They will be granted another lump-sum support fund of six million yuan if they come back to China and get successfully listed at the A-share market. Oversea-listed enterprises moving to Shunyi district from elsewhere and successfully listed at the A-share market will be granted a lump-sum support fund of twelve million yuan.

Article 12 Enterprises cultivated for listing that get listed at NEEQ Base tier or NEEQ Base-tier enterprises newly moving to Shunyi district, with an operating revenue no less than 50 million yuan or net profit no less than 3 million yuan in the previous year, will be granted a lump-sum support fund of 1.5 million yuan. Enterprises cultivated for listing that get listed at NEEQ Innovation tier or NEEQ Innovation-tier enterprises newly moving to Shunyi district will be granted a lump-sum support fund of 2.5 million yuan. Enterprises cultivated for listing that get listed at Beijing Stock Exchange or Beijing Stock Exchange-listed enterprises newly moving to Shunyi district will be granted a lump-sum support fund of 8 million yuan.

Shunyi-based NEEQ enterprises that shift to a Shunyi-based securities company for sustained supervision and guidance will be granted a lump-sum support fund of 100,000 yuan. 

NEEQ enterprises that successfully shift to another board or climb up the tier at NEEQ will be granted the disparity depending on what market it has shifted to or what tier it has climbed up to.

Article 13 Efforts will be made to bring into play the advantageous resources of related agencies, perfect the mechanism of discovering listed companies, and encourage the agencies to introduce to the district quality enterprises that can be cultivated for listing. Agencies that successfully introduce listed enterprises or enterprises cultivated for listing will be rewarded according to relevant policies of Shunyi district on rewards for agencies. 

Chapter IV Financing & development 

Article 14 The capital market’s financing function will be fully exerted to support Shunyi-based listed enterprises to make private placement in the secondary market. Listed enterprises that spend 50% or more of the raised capital on their development in Shunyi district or on projects in the district will be rewarded according to the following standards: 

(a)Enterprises whose private placement is between 30 million yuan (inc.) and 100 million yuan will be granted a support fund 1% of the private placement but no more than 500,000 yuan;

(b)Enterprises whose private placement is between 100 million yuan (inc.) and 500 million yuan will be granted a lump-sum support fund of 1 million; and 

(c)Enterprises whose private placement is 500 million yuan or more will be granted a lump-sum support fund of 1.5 million yuan. 

Enterprises applying for the support fund should apply to the Financial Office of Shunyi district within one year after the private placement is completed. 

Article 15 Listed enterprises are encouraged to spend the funds raised from their IPO in Shunyi district for industrial development. They will be granted a support fund of 200,000 yuan for every 100 million yuan IPO funds spent in the district.

Enterprises applying for the support fund should apply to the Financial Office of Shunyi district within one year after the raised capital is fully spent. 

Article 16 Listed enterprises are encouraged to carry out capital operation and merger and acquisition (M&A). Enterprises whose M&A deals are worth 30 million yuan or more will be granted a support fund equivalent to a certain percentage of the transaction volume depending on the type of M&A. Enterprises conducting M&A in the Chinese mainland will be granted 1% of the transaction volume and annual support fund for a single project shall not exceed 500,000 yuan. Enterprises conducting M&A outside Chinese mainland will be granted 2% of the transaction volume and annual support fund for a single project shall not exceed 600,000 yuan. Enterprises whose M&A target is based in Shunyi district will be granted 3% of the transaction volume and annual support fund for a single project shall not exceed 1 million yuan. The annual support fund for each enterprise shall not exceed 1 million yuan.

Enterprises applying for the support fund should apply to the Financial Office of Shunyi district within one year after the M&A is completed. 

Chapter V Improving the environment for listing 

Article 17 Listing services shall be improved. The leading group of financial services of Shunyi district will coordinate the functional departments and local areas to provide enterprises with comprehensive, professional, and convenient listing services.

The joint meeting of board secretaries shall be further perfected to play the role of a bridge and bond and help enterprises solve problems on their way to listing. 

The board chairman’s meeting system shall be established. The government-enterprise discussion mechanism and inter-departmental coordination shall be strengthened to ensure considerate government services for listing. 

A listed enterprises service platform shall be created and professional activities such as capital market training and enterprises’ road shows regularly organized. 

Article 18 More professional listing services shall be supplied. Shunyi district will join hands with regulators, stock exchanges, industrial associations and securities companies to offer a broad range of services, including capital market training, financial consulting, operation and management of listed companies, and matching of industrial and financial resources. 

Article 19 A sustainable industrial ecology shall be fostered. In light of Shunyi’s industrial layout and strategic development positioning, we will encourage listed enterprises to expand their business and buy real estate in the district. Leveraging the listed enterprises as key market entities, Shunyi will assist them in business and financing matching, expansion of industry chain, and upstream-downstream integration. We will work hard to attract, derive and gather quality enterprises to create a sound industrial ecology featuring mutual promotion and win-win development. 

Article 20 Listed enterprises are encouraged to pursue sustained and healthy development. Listed enterprises that are ordered by relevant regulators to exit the market or stop dealing due to fraud or falsification during the listing process shall reimburse the support fund in full. Listed enterprises that exit the market or stop dealing (except shift of board) within one year from the day of receiving the support fund shall reimburse the support fund in full.

Chapter VI Supplementary provisions

Article 21 This document will come into force on November 1, 2022 for a valid period of three years. The Notice of the People’s Government of Shunyi District of Beijing on Issuing the Methods of Reward of Shunyi District for Supporting Enterprises to Go Public (Shun Zheng Fa [2021] No.25) shall become null and void at the same time. 

Source: The People’s Government of Shunyi District, Beijing