Dacheng Attorney’s Proposal on Subsidizing Listed SMEs on SEE Adopted by Government of Putuo District, Shanghai

On January 14-17, 2013, at the second meeting of the 13th CPPCC of Putuo District, Shanghai, Dacheng senior partner Shang Jiangang, who is also member of the local political consultative committee, submiteed a proposal on subsidizing listed companies on the Shanghai Equity Exchange (SEE). Recently, the government of Putuo District gave the following feedback:
 
“First of all, thank you for supporting our work. Our opinion is as follows: in recent years, the government of Putuo has devoted much effort in creating favorable financial environment by concentrating financial services providers and implementing more targeted policies, tapping financial services providers in serving the real economy, offering preferential treatment to start-up, high-tech companies that the central government encourages to develop, maneuvering technological innovation and transformation while making the best use of the capital market.
 
In 2008, we released “Opinion on Pushing forward SMEs Restructuring and Listing in Putuo District” and set up support fund to boost SMEs listings with a maximum of RMB3mln in an individual case. Specifically, an SME that has completed shareholding reform and entered the phase of pre-listing tutoring and assessment from the Shanghai Securities Regulatory Bureau (“SSRB”) will get RMB500, 000 of subsidy; those which have passed the test of SSRB and whose files are attended to by China Securities Regulatory Bureau will be subsidized with RMB1mln; and those managing to be listed will get RMB1.5mln.
 
In the middle of this June, we issued “Measures on Supporting Financial Industry in Putuo District”, adding supportive measures for SMEs listed on the National Equities Exchange and Quotations (a.k.a. “the new third board”) and the SEE.
 
For unlisted public companies who have been successfully launched on the new third board and whose stock is registered with and deposited in China Securities Depository Clearing Co., Ltd. (“CSDC”), a maximum of RMB1.2mln will be given as subsidy, including RMB500,000 of subsidy for restructuring costs and RMB700,000 for listing fees.
 
For companies listed on the SEE, a maximum of RMB1.2mln would be offered as subsidy, including RMB500,000 of subsidy for restructuring and RMB700,000 for listing fees. In the course of listing on the Exchange, RMB100,000 will be offered annually to the company for the first three years to subsidize regulatory fees and information disclosure fees.
 
Meanwhile, in order to encourage listed companies on the new third board and the SEE to transfer to the main board, SMEs board and GEM board, the government will also subsidize those who succeed in the transfer in an appropriate manner.
 
Listing is an important means for SMEs to raise fund from the capital market to support their growth and enhance their core competitiveness. It also propels companies to build modern corporate system to ensure sustainable development. We will further foster mechanism and institutional innovation, encourage and guide more companies to enter the capital market, so as to add more impetus and power for their growth.
 
Thank you again for your support in our financial industry.”
 
In 2012, Mr. Shang Jiangang’s proposal to set up an intellectual property rights trusteeship center in Putuo District was selected as one of the best proposals by the local political consultative committee. In 2013, his suggestion of building a regional enterprise credit promotion center was regarded as inspiring and instructive by Shanghai Municipal Science and Technology Commission. The proposal in question has now been adopted by the district government.