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An important document from the State Council prohibits local governments from issuing "listing incentives". How is the implementation going in various places at present?

Recently, the Ministry of Justice, together with the Ministry of Finance and the China Securities Regulatory Commission, drafted the "Regulations of the State Council on Regulating the Services Provided by Intermediary Institutions for Public Issuance of Stocks by Companies (Draft for Comments)", which clearly stated that local people's governments at all levels shall not give rewards to issuers or intermediary institutions based on the results of public issuance and listing of stocks. At the same time, it also stated that "if local people's governments violate Article 10 of these Regulations and give rewards to issuers or intermediary institutions, the rewards shall be recovered."

On August 19, China Business News learned from many places that the local areas are temporarily implementing the original listing incentive measures, and will make adjustments after the relevant policies of the State Council, the Ministry of Finance and other departments come into effect.

"All the materials for this year have been collected, but we have to wait for the final documents from the Ministry of Finance and the State Council. We are currently unable to determine the final provisions of the documents, including whether there will be detailed explanations." A staff member of a high-tech zone in a central city said, "We are also waiting for news on whether we can give the rewards this year."

The person also mentioned: "At present, (the relevant departments) are conducting an inspection, but there is no result yet, so we cannot make a final conclusion. The new regulations of the State Council will have to wait until the end of the consultation period to see the final regulations." The scope of the above inspection involves "all past policies and rewards that have been redeemed, which are within the scope of the inspection."

Regarding the current listing incentive policy in the region, the above-mentioned staff member said, "The incentives related to listing are 'redeemed without application'. As long as the companies in the jurisdiction are listed or enter the listing guidance stage, they will be given rewards proactively. If the policy is still valid at that time, it will definitely be redeemed."

It also stated that the list of enterprises in the jurisdiction that are subject to the 2024 incentive measures has been clarified, and whether they can be applied to this year's incentive measures remains to be determined.

Giving listing incentives is an important tool for local governments to encourage enterprises to go public and attract investment. Most of this year's incentive policies are already in the process of implementation. At the same time, many places have just launched an "enhanced version" of the incentive policy.

A staff member of the Finance Bureau of a certain place in the southwest said, "For the time being, we will still implement it according to the current (reward method)."

"Because the State Council has issued policies recently, we will also pay attention to whether the China Securities Regulatory Commission will issue relevant policies. So now we can only say that we will temporarily implement the current policies and wait and see the regulations in the subsequent documents issued by the state." The person said.