Xinhua News Agency, Beijing, March 27 (Reporter Yao Junfang) In order to improve the share repurchase system of listed companies on the NEEQ and regulate the implementation of share repurchase by listed companies, the National Equities Exchange and Quotations issued on the 26th the implementation of the revised share repurchase for NEEQ listed companies. Purchase relevant rules.
The newly revised "Implementation Rules for the Repurchase of Shares by Companies Listed on the National SME Share Transfer System" strengthened the regulatory requirements for information disclosure, and put forward more specific and specific requirements for information disclosure at key points in the repurchase.
For example, in the disclosure stage of the repurchase plan, a new disclosure requirement was added for select-level companies to inquire about key personnel reductions, and it was clarified that the repurchase might trigger a downgrade situation.
In the implementation phase of the repurchase, the disclosure requirements for the announcement of the adjustment of the repurchase due to the distribution of equity were clarified.
In order to improve the rationality of the repurchase price, the revised rules have changed the upper limit of the repurchase price reference standard from 200% of the average closing price of the 60 trading days before the resolution to 200% of the average transaction price after excluding block transactions.
The National Equities Exchange and Quotations explained that the average transaction price after excluding block transactions can better reflect the fair value of the company’s stocks than the average closing price, and it is also more difficult to be manipulated, which helps to improve the rationality of repurchase pricing and protect listings. Company and investor rights.
In order to improve the convenience of the company's repurchase operation, the detailed rules no longer limit the declaration of companies that carry out repurchase through call auctions in the first 5 minutes of bid matching, which is more in line with the system of higher bid matching frequency after the reform.
The NEEQ selection layer will officially open in July 2020.
In response to market-level adjustments, the revised rules also set up a repurchase system arrangement for select-level companies that more closely matches their transaction methods and level characteristics.
In addition, the reporter learned from the National Equities Exchange and Quotations that the National Equities Exchange and Quotations also recently issued guidelines on the application of relevant business rules for the NEEQ M&A and reorganization to further standardize the merger and reorganization business.