New Third Board Listing Introduction
The first board market usually refers to the main board market (including small and medium-sized boards), and the second board market refers to the GEM market. Compared with the first board market and the second board market, some people in the industry refer to the over-the-counter market as the third board market. The development of the third board market includes two stages: the old third board market (hereinafter referred to as the "old third board") and the new third board market (hereinafter referred to as the "new third board"). The Old Third Board is the "Agency Share Transfer System" established on July 16, 2001; the New Third Board is the "Agency Transfer System for Unlisted Joint Stock Companies in Zhongguancun Science and Technology Park" based on the Old Third Board. [1]
Requirements
New Third Board listings need to meet the following requirements:
1. Subject qualification listing requirements: New Third Board listed companies must be unlisted joint-stock companies .
2. Operating life requirements: The duration must be two years.
3. Profit requirements for companies listed on the New Third Board: they must have stable and sustainable operating capabilities.
4. Asset requirements: No limit.
5. Main business requirements: The main business must be outstanding.
6. Growth and innovation capability requirements: Zhongguancun High-tech Enterprises will gradually expand the scope of the pilot to other national high-tech industrial development zones.
2 Listing Standards Edit
New Third Board listing standards must meet the following conditions:
New Third Board Listing Standards 1. Established in accordance with the law and have existed for two years. If a limited liability company is converted into a joint-stock company as a whole based on the original book net asset value, the duration can be calculated from the date of establishment of the limited liability company. (Fiscal Year)
New Third Board Listing Standards 2. Clear business and ability to continue operating
New Third Board Listing Standards 3. Sound corporate governance mechanism, legal and standardized operations
3 Listing Processing Editor
Listing Conditions
New Third Board Listing Conditions:
(1) Meet the requirements of the New Third Board for two years of existence. (The overall restructuring of a limited company can be calculated continuously);
(2) The main business of the New OTC Market is outstanding and has a record of continuous operation; conditions that must be met.
(3) The governance structure of the companies listed on the New Third Board is sound and the operating conditions are standardized;
(4) The issuance and transfer of shares of the companies listed on the New Third Board are legal and compliant;
(5) The registered address of the company listed on the New Third Board is in the pilot national high-tech park;
(6) The local government issues a confirmation letter of qualifications for the New Third Board listing pilot. [2]
Agency role
The role of NEEQ listing:
(1) Financial support for NEEQ listed companies: According to various regional parks and government policies, 1. Enterprises can enjoy park and government subsidies.
(2) Facilitate financing for companies listed on the New Third Board: After the company is listed, it can implement private placement of shares to improve the company's credit rating and help companies raise funds faster.
(3) Wealth appreciation of companies listed on the New Third Board: The stocks of companies and shareholders can be circulated at higher prices in the capital market to achieve asset appreciation.
(4) Share transfer of companies listed on the New Third Board: Shareholders’ shares can be legally transferred to improve equity liquidity.
(5) Transfer of listed companies to the New Third Board: Once the transfer mechanism is determined, the company can enjoy the "green channel" first.
(6) Corporate development of companies listed on the New Third Board: It is conducive to improving the company's capital structure and promoting the company's standardized development.
(7) Publicity effect of companies listed on the New OTC Market: establishing company brand and increasing corporate visibility. [2]
4 Listed Company Editors
1. New OTC listed companies must be high-tech park enterprises in the four cities of Beijing, Shanghai, Tianjin and Wuhan.
2. The net profit of companies listed on the New OTC Market is preferably more than 3 million.
3. It is better for companies listed on the New Third Board to have their own invention patents, and it is best to be a two-high-six-new category company.
4. Companies listed in Zhongguancun, Beijing, are called New Third Board listed companies. The NEEQ-listed companies in Wuhan, Tianjin, and Shanghai are called over-the-counter markets.
5 Listing process editor
Process for applying for listing on the New Third Board:
To apply for listing on the New Third Board, you must sign a recommended listing process agreement with the sponsoring securities firm as its Recommend the sponsoring securities firm to recommend the NEEQ listing process to the association. The application process for listing on the New Third Board mainly includes:
The process for listing on the New Third Board 1. The limited company to be listed undergoes joint-stock reform and is transformed into a joint-stock company as a whole. New Third Board Listing Process The entity applying for listing on the New Third Board must be an unlisted joint-stock company. Therefore, the company to be listed that is still in the limited company stage first needs to initiate the share reform process. The limited company will make an overall discount based on the audited net asset value on the basis of the share reform. The shares were changed into a joint-stock company.
NEEQ Listing Process 2. The sponsoring securities firm conducts due diligence on the joint-stock company to be listed, prepares recommended listing filing documents, and assumes recommendation responsibilities. When the sponsoring securities firm recommends the shares of unlisted companies to be listed on the New Third Board, it should conduct due diligence diligently and conscientiously, carefully prepare the filing documents for recommendation and listing, and assume the responsibility for recommendation. When the sponsoring securities firm conducts due diligence, it should set up a special project team for each joint-stock company to be recommended. The project team should coordinate and cooperate with accounting firms, law firms and other intermediaries. After completing the corresponding audit and legal investigation work, according to the "Guidelines for Due Diligence of Sponsoring Securities Firms", the project team should investigate the historical investment defects of the company to be listed on the New Third Board, such as Propose solutions to major issues such as related transactions, horizontal competition, etc., and prepare filing documents and other application materials.
NEEQ Listing Process 3. The sponsoring securities firm should set up an internal review agency to be responsible for the review of filing documents. The sponsoring securities firm should not only set up a dedicated project team to be responsible for due diligence, but also set up an internal review organization to review the filing documents and issue review opinions. The sponsoring securities firm will decide whether to recommend the company to the association for listing on the New Third Board based on its internal opinion. If it is decided to recommend, a recommendation report (including due diligence, core opinions, recommendations and reminders to investors, etc.) should be issued, and filing documents should be submitted to the association.
NEEQ Listing Process 4. After passing the review, the sponsoring securities firm will submit the filing documents to the Securities Association of China for review. The Securities Association of China is responsible for reviewing the filing documents submitted by the sponsoring securities firm and making a decision on whether to file. If the Securities Association decides to accept the application, it will issue an acceptance notice and review the filing documents. If there are any objections, it can provide written or oral feedback to the sponsoring securities firm, which will respond; if there is no objection, it will submit written or oral feedback to the sponsoring securities firm. Issue a filing confirmation letter. [1]
6 Listing Benefits Editor
New Third Board Listing Benefits
There are many benefits to New Third Board listing, for those with high technological content and independent innovation ability in the early stage For relatively strong unlisted high-tech joint-stock companies, listing on the New Third Board can bring them the following benefits:
Benefits of listing on the New Third Board 1. It is helpful to broaden the company’s financing channels.
Benefits of listing on the New Third Board 2. Improve the company’s capital structure.
Benefits of listing on the New Third Board 3. Guide the company to operate in a standardized manner.
Benefits of listing on the New Third Board 4. It will help improve the liquidity of the company’s shares and bring positive wealth effects to the company.
Benefits of listing on the New Third Board 5. It is helpful to increase the possibility of the company being listed.
New Third Board Listing Evaluation
The New Third Board may bring huge wealth, but it may also expose investors to risks: Facing the New Third Board listing evaluation, the risks that may arise from the expansion of the New Third Board . Most of the companies listed on the New OTC Market before the evaluation were of higher quality, and the investment risks were relatively small. After the evaluation, the quality of the companies listed on the New Third Board is uneven, and the investment risks are relatively high; my country only stipulates that companies listed on the New Third Board can be evaluated with reference to the information disclosure standards of listed companies, and voluntarily conduct more adequate information disclosure. That is to say, my country’s requirements for information evaluation of companies listed on the New Third Board are less restrictive, more flexible, and have greater investment risks; my country’s current stock transactions on the New Third Board use call auctions for centralized matching transactions, which may result in investors being unable to buy or sell stocks. Risks of selling stocks.
[1]
Advantages of listing on the New Third Board
Xie Geng, general manager of the National Equities Exchange and Quotations Co., Ltd., revealed at the Chongqing Financial Open Forum that the National Equities Exchange and Quotations has completed the industrial and commercial After registration, the market system will be open to investors before the end of the year and implemented in accordance with the new system. By then, the stocks in the original NET system, STAQ system, and brokerage stock transfer system will be moved to this "New Third Board". Xie Geng said that my country's capital market construction has shown several obvious trends: first, the service targets have changed from large and medium-sized enterprises to small and medium-sized enterprises, and from relatively mature industries and business formats to new industries and business formats; second, as residents The increase in income and financial management needs require diversified products and tools supported by corresponding capital platforms to adapt; thirdly, with the advancement of financial globalization and the improvement of the scale and efficiency of cross-border capital flows, the development of the capital market should More international. [3]
When will the New Third Board be listed?
The time for the New Third Board to be listed is about 3-6 months. The specific time to be listed depends on the processing speed of the brokerage and the agent. The 3-year qualification requirement has been changed to a 2-year qualification.
NEEQ listing fees, costs and preferential policies
Compared with the main board, small and medium-sized board and GEM, the fee for enterprises to apply for listing and transfer on the NEEQ is much lower. The cost is generally around 1.2 million yuan (it will fluctuate depending on the specific circumstances of the project and the main board securities companies), and the annual operating cost after listing on the New OTC Market is less than 30,000 yuan. According to the "Zhongguancun National Independent Innovation Demonstration Zone's Measures for the Management of Subsidy Funds for Enterprise Restructuring and Listing", enterprises can apply for restructuring subsidies. Each enterprise is supported with a support of 200,000 yuan. Enterprises listed in the share quotation and transfer system can receive 500,000 yuan in financial support. After the park companies recommended by the sponsoring brokerage obtain the "Confirmation Letter for Filing Quotation Documents from the Securities Association of China", each brokerage can receive financial support of 200,000 yuan.
New Third Board listing process and time period
According to relevant laws, regulations and normative documents, the process for non-listed companies to apply for New Third Board listing transfer is as follows:
1. Resolutions of the company's board of directors and general meeting of shareholders
2. Apply for the qualification of a pilot enterprise for share quotation transfer
3. Sign a recommended listing agreement
Application by a non-listed company When shares are listed in the agency system, a sponsoring securities firm must be entrusted as its recommended sponsoring securities firm to make recommendations to the association. Unlisted companies that apply for stock listing should sign a recommended listing agreement with the recommended sponsoring securities firm.
4. Cooperate with the due diligence of the sponsoring quotation brokerage
5. The sponsoring quotation brokerage submits recommended listing filing documents to the association
6. Association filing confirmation
If the association has no objection to the recommended listing filing documents, it will issue a filing confirmation letter to the recommending sponsoring securities firm within fifty working days from the date of acceptance.
7. Centralized registration of shares
8. Disclosure of share quotation and transfer instructions
9. Listing transactions
Short approval time and listing procedures Convenience is the advantage of the New Third Board listing and transfer. Among them, the approval time for an enterprise to apply for a confirmation letter for the pilot qualification of unlisted company share quotation transfer is 5 days; it is recommended that the sponsoring securities firm submit the recommended listing filing document to the association, and the association has no objection to the recommended listing filing document. Yes, the time for issuing the filing confirmation letter is within fifty working days. In addition, the time period for an enterprise to apply for NEEQ listing and transfer also depends on the enterprise’s determination of the relevant intermediaries, the relevant intermediaries’ due diligence, and the follow-up arrangements after obtaining the association’s confirmation letter.