The China Securities Regulatory Commission has issued "Eight Measures for Deepening the Reform of the STAR Market and Serving the Development of Technological Innovation and New Quality Productivity."

On June 19, the China Securities Regulatory Commission (CSRC) released "Eight Measures for Deepening the Reform of the STAR Market and Serving the Development of Technological Innovation and New Quality Productivity" (hereinafter referred to as the "Eight Measures"), further deepening reform, enhancing inclusiveness toward new industries, new business models, and new technologies, and leveraging the functions of the capital market to better serve the broader goal of Chinese-style modernization.

For more than five years, the STAR Market has steadfastly adhered to its positioning as a platform for “hard tech,” starting from scratch and steadily growing stronger. Its role as a “testing ground” for institutional reforms and its effectiveness in serving technological innovation have become increasingly evident. The “Eight Measures” thoroughly implement the guiding principles and requirements set forth by the Party Central Committee, the State Council, and the new “National Nine Measures,” focusing closely on supporting high-level self-reliance and strength in science and technology and fostering the development of new-quality productivity. The measures highlight key priorities and adopt a balanced approach that considers both short-term needs and long-term goals, introducing a comprehensive package of reform initiatives. In particular, addressing issues that have drawn significant market attention—such as excessive oversubscription in new stock offerings, an active mergers and acquisitions (M&A) and restructuring market, and enhanced supervision of listed companies—the “Eight Measures” have put forward targeted arrangements. These measures not only proactively respond to market concerns but also lay the groundwork and accumulate valuable experience for further deepening capital market reforms in the future. Meanwhile, the “Eight Measures” are also of great significance in helping Shanghai accelerate the construction of its “Five Centers.”

The “Eight Measures” focus on strengthening regulation, preventing risks, and promoting high-quality development as the main guiding principles. They adhere to the principles of seeking progress while maintaining stability, adopting comprehensive strategies, being goal-oriented and problem-oriented, respecting underlying laws, and upholding integrity while fostering innovation. These measures aim to promote the sustained and healthy development of the STAR Market along a market-oriented and rule-of-law track. The key components include:

First, we will strengthen the “hard technology” positioning of the STAR Market. We will strictly control entry standards and prioritize supporting “hard technology” companies—those that have achieved breakthroughs in key core technologies in new industries, new business models, and new technologies—to list on the STAR Market. We will further refine the mechanism for accurately identifying technology-based enterprises. We will also support high-quality, non-profitable technology companies to list on the STAR Market.

Second, we will launch a pilot program to deepen the underwriting and distribution system. We will optimize the pricing mechanism for new stock offerings and pilot adjustments to the proportion of high-priced shares excluded from the initial pricing of new stocks. We will refine the allocation arrangements for new shares on the STAR Market and increase the allocation ratio for institutional investors who express a long-term holding intention. We will also strengthen regulatory oversight of the inquiry and bidding process.

Third, we will optimize the equity and debt financing system for companies listed on the STAR Market. We will establish and improve a “green channel” for equity and debt financing as well as mergers and acquisitions and restructuring specifically tailored to “hard tech” enterprises engaged in tackling key core technologies. We will explore the development of criteria for identifying “light-asset, high-R&D investment” enterprises. Furthermore, we will promote pilot programs for shelf registration of refinancing, with the first such cases being implemented on the STAR Market.

Fourth, we will provide stronger support for mergers and acquisitions (M&A) and restructuring. We will encourage listed companies on the STAR Market to carry out M&A and integration activities along the upstream and downstream segments of their industrial chains. We will enhance the inclusiveness of valuation frameworks for M&A and restructuring, and support STAR Market-listed companies in acquiring high-quality, non-profit “hard tech” enterprises. We will diversify payment instruments for M&A and restructuring, and conduct research into installment payments using shares as consideration. We will also support STAR Market-listed companies in focusing on optimizing and strengthening their core businesses through absorption-type mergers and acquisitions.

Fifth, we will improve the equity incentive system. We will enhance the precision of equity incentives and better align the interests of investors with those of the company. We will refine the implementation procedures for equity incentives at companies listed on the STAR Market, optimize regulations governing short-term trading and window periods, and explore ways to further improve arrangements for reserved equity incentives.

Sixth, we will improve trading mechanisms and enhance market risk prevention. We will strengthen transaction supervision, study and optimize the market maker mechanism for the STAR Market, as well as the after-hours trading mechanism. We will also enrich the STAR Market’s index offerings, ETF categories, and ETF option products. Seventh, we will strengthen full-chain regulatory oversight of listed companies on the STAR Market. We will strictly crack down on market irregularities such as fraudulent issuance and financial fraud on the STAR Market, thereby more effectively protecting the legitimate rights and interests of small and medium-sized investors. We will encourage founding teams and core technical personnel to voluntarily extend the lock-up periods for their shares.

Optimize the “reverse linkage” system for exit strategies of private equity and venture capital funds. Strictly enforce the delisting system. Eighth, actively foster a healthy market ecosystem. Promote the optimization of judicial protection mechanisms for the STAR Market. Strengthen collaboration with local governments and relevant ministries and commissions, conduct regular on-site visits to STAR Market-listed companies, and jointly work to enhance the quality of these companies. Deeply implement the “Improve Quality, Enhance Efficiency, and Deliver Strong Returns” initiative, and strengthen investor education and services.

Next, the CSRC will, in accordance with the general guiding principle of pursuing progress while maintaining stability, further deepen and effectively implement the stock issuance registration system. It will steadily advance the implementation of various policies and measures to deepen the reform of the STAR Market, dynamically assess and optimize relevant institutional rules, and, after developing replicable and scalable best practices, smoothly and orderly extend these practices to other market segments. This will continuously enhance the capital market’s role in supporting high-level scientific and technological self-reliance and the development of new-quality productivity.