What is a listing?
Listing refers to firms which meet the listing requirements of the Qianhai Equity Exchange (hereinafter referred to as the "Exchange") applying for the display of their information to investors on the Exchange's website and receiving information display services provided by the Exchange.
What are the differences between the Qianhai Equity Exchange and other exchanges?
The Exchange is a new market-oriented financing platform which is independent of the Shanghai and Shenzhen stock exchanges and commercial banks. Its main differences as compared to the Main Board Market and the New Third Board Market are as follows:
Low financing cost
"7 * 24" operation, no strict time limits
Interactive, consideration payment. Exchange markets emphasize time precedence and price priority, while OTC markets are an interactive and consideration payment process.
Customization. Firms can raise funds timely and flexibly according to their needs and are not arranged into batches as issuers as in the case of exchanges.
A large number of investment targets available for selection. Qianhai's goal is to list 10,000 firms in six years to provide investors with a more flexible choice than directly going to firms.
Protect the core secrets of firms. Unlike exchange markets which implement a mandatory information disclosure system, OTC markets only disclose firms' information to investors in a targeted manner.
Win-win cooperation. OTC markets are not concerned about trading and reject speculation. There is no strict division between primary and secondary markets, nor is there any strict Chinese wall system. Markets are built into a tribe characterized by win-win cooperation.
What requirements must firms wishing to list on the Qianhai Equity Exchange meet? (Note: The international board zone is the only source of information regarding the requirements for listing on the international board)
Firms wishing to list on the Exchange must have been in existence for a minimum of one year (The length of time a limited liability company which as a whole has been turned into a company limited by shares has been in existence can be calculated from the date of establishment of the limited liability company) and meet one of the following criteria:
- net profits of at least three million yuan in the latest 12 months
- operating revenue of at least 20 million yuan in the latest 12 months; or operating revenue of at least 20 million yuan in the latest 24 months plus an annual growth rate of at least 30%
- net assets of at least ten million yuan and revenue of at least five million yuan in the latest 12 months
- bank borrowings or institutional equity investment worth at least one million yuan over the previous 12 months.
What are the main listing processes? (Note: The international board zone is the only source of information regarding the main processes for listing on the international board)
Registration: The firm logs into the registration page of the Exchange's website obtain a user name and password.
Online filing: The firm logs into the Exchange's website with its user name and password, submit electronic application documents following prompts on the website and fill in the information it wants to display.
Submission of written application documents: After the application documents submitted online have been verified by the Exchange, the firm submits a full set of written application documents upon receipt of a notice from the Exchange.
Signing of the agreement: After the written application documents have been verified by the Exchange, the Exchange signs a Firm Listing Service Agreement with the firm.
Listing-for-display: After the signing of the Firm Listing Service Agreement, the Exchange determines the code of the listed firm, makes arrangements for the firm to get listed for display and provides information display services to it.
Are firms required to undergo shareholding reform in order to get listed?
The Exchange does not require firms to change to their original forms and modes of existence.
Can limited liability companies and partnerships apply for listing?
Corporations such as companies limited by shares, limited liability companies and partnerships incorporated and validly existing in the territory of the People's Republic of China and other lawfully established organizations may apply for listing on the Exchange.
How long does it usually take for a firm to get listed for display after submitting the listing application documents?
It usually takes less than 10 working days for a firm to get listed for display after submitting the listing application documents, provided that the listing application documents meet the requirements of the Exchange.
What application documents should be provided for listing? (Note: The international board zone is the only source of information regarding application documents for listing on the international board)
Firms applying for listing on the Exchange in order to display their information on its website shall provide the following application materials to the Exchange:
Firm Listing Application Form
Firm Basic Information Sheet
The duplicate of the Business License for Enterprise as a Legal Person, the duplicate of the Organization Code Certificate, a copy of the duplicate of the Tax Registration Certificate
A copy of the power of attorney granted by the legal representative and copies of the identity documents of the entrusted agent
Firm information query form
A copy of the certificate of employment of the legal representative and copies of his or her identity documents
Relevant documents certifying compliance with the Exchange's listing requirements
A letter of undertaking promising that the application materials contain no misrepresentations or misleading statements
Shareholder Information Registration Form
Other materials required by the Exchange
After registering and logging into the Exchange's website, a firm will have access to samples or detailed descriptions of the above-mentioned application materials on the Exchange's website.
Is a firm required to hire an accounting firm, a law firm and other intermediaries in order to get listed?
The Exchange does not require the hiring of an accounting firm and a law firm.
Is listing limited to certain industries?
Are there mandatory disclosure requirements that firms have to comply with after listing?
There are no mandatory disclosure requirements. Firms may decide whether or not to display relevant information on the Exchange's website.
What kind of information can be displayed?
The main objective a firm has in mind when seeking a listing is to comprehensively and fully demonstrate its own competitive advantages and investment highlights and explore investment and financing opportunities through the Exchange's platform. The information that a firm can display includes, but is not limited to, basic information about the firm, its shareholders, its competitive advantage, its products and services, industry development, its management team, its development plan and its financing needs. Firms can determine the level of detail at which content is displayed. In order to fully demonstrate firms' investment value, the Exchange encourages listed firms to fully, comprehensively and objectively display information. In addition to filling in information, you can also upload a video introducing your firm and product or service-related pictures and qualification and honor certificates in JPG, PDF and other formats.
Can a firm edit information displayed on the Exchange's platform?
A firm can arrange for its information maintenance specialist to log into the Exchange's website with its user name and password to edit the information displayed so as to show its latest developments.
What kind of impact does the listing of a firm has on its application for listing on the New Third Board or an IPO?
The listing of a firm will not obstruct its listing on an exchange. According to relevant regulations, the listing of a firm will not affect its application for listing on the New Third Board or an IPO. If a listed firm applies for listing on the New Third Board or an IPO, it can decide on its own whether or not to terminate its listing on the Exchange.
How to become an investor of the Qianhai Equity Exchange?
After having registered and opened an account on the Exchange's website, passed the Exchange's risk assessment and been classified, an investor with full capacity for civil rights and civil conduct who meets the entry criteria for qualified investors will become a qualified investor of the Qianhai Equity Exchange.
Account opening process: register as a user of the Qianhai Equity Exchange's website → log into the home page, apply for an account online → account opening successful → link the account ton a third party depository account → deposits and withdrawals.
Devices and documents required to open an account: ID card, mobile phone and bank card.
What measures does the Exchange take to ensure that your account is secure?
The Qianhai Equity Exchange has experienced financial settlement personnel and sound internal control measures.
The Qianhai Equity Exchange has established a third-party depository system to manage customers' funds independently and securely.
In the account opening process, rigorous identity verification is conducted using the National Citizen Identity Information System to ensure that customers' identity information is true and accurate.
Customers' deposits and withdrawals are done in a closed loop using accounts opened under the same name and the funds transfer process is clear and documented.
Customers can view the details of their deposits, withdrawals and transactions in real time via the Qianhai Equity Exchange's website.
The system uses a PKI security system, which provides high-strength encryption to ensure the security of funds, integrity, authenticity and non-repudiation.
What do I need to pay attention to before investing?
Before investing, please read carefully the details of the loan or product (including the amount of financing, interest rate, term, way to improve the credit profile, etc.) to determine whether the investment is in line with your risk tolerance and expected return.
Before investing, please verify the amount and duration of your investment. Do not proceed until you are sure there are no mistakes.
Before investing, please read the Risk Disclosure and the relevant contract. Do not proceed until you agree to the terms of the contract.
How do you protect users' privacy?
The Qianhai Equity Exchange's information technology for which industry standards for data security have been adopted supports up to 256-bit encryption and the Secure Sockets Layer protocol to technically guarantee the integrity and non-repudiation of personal information and account management and safeguard the security and reliability of online data transmission.
The scope of information collected by the Qianhai Equity Exchange is limited to relevant information necessary for the conduct of business. The Qianhai Equity Exchange will strictly adhere to its duty of confidentiality. The Qianhai Equity Exchange will keep information provided by firms and investors strictly confidential and will not disclose such information to anyone except in any of the following circumstances:
The disclosure is made with the prior consent of the customer.
The disclosure is required by any law or regulation.
The disclosure is required by any government department or any other regulatory authority.
What ways of financing does the Qianhai Equity Exchange provide to firms?
The Exchange customizes financing products according to firms' financing needs. After your firm is listed, we will provide your firm with a variety of ways of financing.
Does Qianhai Equity Exchange impose limitations on batches which batches firms are assigned to and how many shares they issue?
The Exchange does not impose limitations on how listed firms issue shares, which batches they are assigned to and how many shares they issue. In the principle of market autonomy, firms choose ways of financing and amounts of financing according to their own operating conditions and financing needs.
What professional services does the Exchange provide for firms in terms of equity investment and financing?
Services the Exchange's professional team offers to firms seeking financing range from preliminary due diligence, investment value and competitive advantage analysis, prospectus or business plan preparation, valuation and pricing, selection of and initial contact with investors, issuance of private placement documents, preliminary due diligence on investors, negotiation of investment terms, final due diligence, transaction structure design, legal document preparation, negotiation to signing and delivery. In addition, it also provides shareholding reform, equity incentive scheme design and other professional services.
Does a firm need to be restructured into a company limited by shares for equity financing purposes?
All corporations including limited liability companies and partnerships can seek financing through the platform without being restructured into companies limited by shares. Restructuring into a company limited by shares helps to standardize a firm's corporate governance and enhance its market image and facilitates financing. Firms may receive assistance from the Exchange's professional team in order to help them complete shareholding reform.
Are there mandatory disclosure requirements that firms have to comply with after equity financing?
There are no mandatory disclosure requirements that firms have to comply with in order to seek equity financing through the platform. Firms can regularly publish or update equity financing-related information according to their own circumstances.