SZSE Constantly Optimizes the Construction of Business Rules to Consolidate the System Foundation of Front-line Supervision

date: 2017-2-28

Recently, SZSE has finished clearing its business rules for the 12th times and released the eighth batch of annulled business rule directory. The annulled 20 pieces encompass the cases that a rule itself is being amended, its higher law is annulled or it should be annulled for is no longer applicable because of business development. After the clearing, the existing valid business rules total 161 pieces and all of them will be announced and updated in real time in the column of “Laws/Regulations” on the website of SZSE.


Business rules are the cornerstone for an exchange to build a robust front for market stability and the basis for implementing comprehensive and strict supervision according to law. SZSE has always been committed to constructing a business rule system that is transparent in content, clear in structure and unified in form as well as adaptive to the development of multi-layer businesses. In 2016, SZSE has highlighted the development of the following business rule construction. First, with regard to the hotspots and difficulties of market supervision, SZSE continues to enrich the guidance for industrial information disclosure and has successively introduced the trading suspension and resumption business and the memo of the listed companies plus PE cooperation model, rapidly following the changes in market development. Second, to correspond to the commissioning of the new generation trading system, SZSE has fully sorted out the trading-type business rules, enhancing market efficiency. Third, SZSE has revised the guidance for risk warnings on the high-risk securities transaction of member clients and gradually promoted the implementation of the regulatory model of “member-centered supervision”, strengthening the front-line supervision in market transactions. Fourth, SZSE has taken strict precautions against financial risks by reinforcing the supervision over information disclosure on the corporate bond duration and the risk management of pledged repurchase of bonds and improving the management of structured fund investors’ adequacy. Fifth, SZSE has carried out solid work on the Shenzhen-Hong Kong Stock Connect related business rule construction and agreement signing to ensure the smooth introduction and stable running of the stock connect, thus standardizing and leading development.


A relevant principal of SZSE stressed that the Central Economic Working Conference has clearly set the general tone of work in 2017 as “seeking progress while ensuring stability”. At the 2017 National Securities and Futures Supervision Conference, Chairman Liu Shiyu repeatedly emphasized that SZSE should play the role of front-line supervision and prioritize the work of preventing market risks. Faced with a new situation where domestic and international environments for the running of capital market grow more complex in 2017, SZSE will continue to perfect the long-term mechanism for formulating, revising, clearing and evaluating business rules and increase its foresight, coordination and transparency in business rules so that it will consolidate the system foundation for performing the function of front-line supervision.