Interpretation of Several Measures Further Supporting the Listing of Enterprises (for Trial Implementation)

The following measures are formulated to further implement the financing incentive policies of the Beijing Economic-Technological Development Area (the "Area"), increase support for the listing of enterprises, and encourage more high-quality enterprises to go public for better development.

In these measures, “enterprises” refer to those that have been listed or plan to be listed. They should have status of independent legal person, have lawfully registered, paid taxes, and been included in the list for national statistics in Beijing E-Town (approximately 225 square kilometers),. They should have no record of major administrative or criminal violations within three years before the information collection or application period, and are not on the list of entities with a bad credit rating.

In these measures, “getting listed” includes domestic and overseas listing. Domestic listing refers to the initial public offering (IPO) of an enterprise on a Chinese mainland stock exchange. Overseas listing refers to getting listed, directly or through indirect means including red chip stocks, on major overseas stock exchanges such as those in Hong Kong SAR and Taiwan of China, and Nasdaq.

Specifics of support:

Firstly, enterprises will be rewarded for getting listed, and thus the cost of getting listed will be reduced. Those listed on the domestic main board, small and medium-sized enterprise board, science and technology innovation board, ChiNext and Beijing Stock Exchange will be offered financial rewards in installments or a lump sum based on the recipient’s choice. One-time special incentive will be provided for those that get listed overseas, while another one-time special reward will be offered if an enterprise listed on an overseas market gets listed on the domestic A-share market too.

Secondly, listed enterprises will be incented to move from outside Beijing into the Area. Listed companies which move their places of registration and tax payment to the Area will be rewarded in accordance with the reward standards for enterprises within the Area. For enterprises moving to the Area from other districts in Beijing, rewards already obtained in other districts will be taken into consideration.

Thirdly, rewards will be provided to enterprises that have restructured into joint-stock ones for getting listed, and individual shareholders of such enterprises may be rewarded as well in order to motivate enterprises to get listed. In the case of an enterprise being restructured into a joint-stock company, if an individual shareholder's income tax contributes to local economy as he or she has increased stock capital with undistributed profits or surplus reserves, the individual shareholder shall receive as reward a certain proportion of the BDA's disposable income from the contribution after the listing of the company.

Fourthly, listed enterprises' shareholding platforms will be rewarded to encourage enterprises to set up or move shareholding platforms to the Area. For shareholding platforms affiliated with listed enterprises in the Area with the individual income tax withheld and paid for employees (partners) in the year totaling CNY 500,000 or more due to "shareholding reduction, merger and acquisition, reorganization" and other matters as a result of the enterprises' being listed, a certain proportion of the BDA's disposable income from the generated contribution to regional economy will be offered as reward.