CSRC offers guidance on ChiNext sponsorship

In an attempt to address issues arising from misunderstandings about the market orientation of ChiNext by sponsors and enterprises since ChiNext’s establishment, on 19 March the China Securities Regulatory Commission (CSRC) issued the Guidelines on Further Duly Performing Sponsorship Work in Connection with ChiNext, reiterating ChiNext’s market orientation and industry direction, and setting forth specific obligations in respect of prudent sponsorship.

Industrial policy

The Guidelines require enterprises sponsored by sponsors to be in compliance with the state’s economic development strategy and industrial policy. In the post-financial crisis era, the strengthening of the indigenous innovation capabilities of enterprises, the promotion of the adjustment of the industrial structure and the curbing of overcapacity and of energy-intensive and heavily polluting industries have been set as strategic priorities for the development of the Chinese economy.

Market orientation

Key candidates for sponsorship are enterprises that are aligned with the direction of the state’s strategy for new industrial development, particularly enterprises in such sectors as new energy resources, new materials, information, biological and new medical pharmaceuticals, energy saving and environmental protection, aviation and aerospace, the sea, advanced manufacturing and hi-tech services, and enterprises in other sectors that have indigenous innovative capabilities and strong growth prospects.