ISSUING AUTHORITY:

China Securities Regulatory Commission

DATE OF ISSUANCE:

January 7, 2022

The China Securities Regulatory Commission (CSRC) announced that it would pilot market-making on the STAR Market of Shanghai Stock Exchange, and issued the corresponding draft rules, the Provisions on the Pilot Program for the Market-Making Trading of Stocks on the STAR Market of Securities Companies (Draft for Comments) (hereinafter referred to as the “Draft”) on January 7, 2022.

Under the Draft, qualified securities companies can apply to act as market-makers on the STAR Market. In addition to meeting such conditions as sound business plans, professionals and technical systems, the eligible securities companies participating in the pilot program shall also possess net capital of no less than RMB10 billion for the previous 12 consecutive months and have been categorized as Class A or above in the past three years.

Securities companies shall undertake certain obligations such as providing bilateral continuous quotations and bilateral responsive quotations regarding stocks on the STAR Market and may benefit from the spread between buying and selling. The securities companies carrying out market-making may use their own stocks, stocks borrowed from the China Securities Finance Corporation Limited, or other stocks of which they have the right of disposal.

The deadline for feedback on the Draft was February 6, 2022.

Reference:

关于就《证券公司科创板股票做市交易业务试点规定（征求意见稿）》公开征求意见的通知