ChiNext lifts its regulatory game


More than 300 listed companies have been trading on ChiNext since its successful launch on 23 October, 2009. To gradually improve the regulatory regime for companies listed on ChiNext, the securities regulators and the Shenzhen Stock Exchange have, based on the existing laws and regulations, made timely amendments and introduced an array of documents and policies to address the following issues.

A photo of The Shenzhen Stock Exchange
The Shenzhen Stock Exchange

Memorandum No. 1 on Information Disclosure Operations on ChiNext – Use of Over-raised Funds was revised in April 2010 to specifically govern the scope of applicability of over-raised funds of companies listed on ChiNext, the purposes of use of such funds, procedures for the use of such funds and deposit of such funds. This memorandum has elaborated on the requirements for the disclosure of information on the use of over-raised funds at different stages.

The imposition of strict restrictions on the use of over-raised funds by companies listed on ChiNext will help effectively minimise the risks created during the use of such funds.

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Wayne Chen is a partner at Llinks Law Offices in Shanghai. He can be contacted at + 86 21 3135 8666 or by email at

Monica Gao is a lawyer at Llinks Law Offices in Beijing. She can be contacted at + 86 10 6655 5050 or by email at