Photo taken on July 22, 2019 shows the debut ceremony of China's sci-tech innovation board (STAR Market) at the Shanghai Stock Exchange in Shanghai, east China.
BEIJING, Oct. 17 (Xinhua) -- China's Shanghai Stock Exchange (SSE) has completed preparations for the market making business on its sci-tech innovation board, better known as STAR Market, by October 15, reported Xinhua Finance citing news from SSE on Monday.
SSE made the announcement via its official website, saying that upon approval of China's securities regulator, 14 securities firms had obtained qualifications for market making of listed securities by October 14.
The first batch of them acquiring the market maker qualifications on STAR Market are Shenwan Hongyuan Securities, Huatai Securities, China Galaxy Securities, China Securities, Orient Securities, Caitong Securities, Guosen Securities and Sinolink Securities.
The second batch of qualified securities brokers are CITIC Securities, Guotai Junan Securities, China Merchants Securities, Industrial Securities, Soochow Securities and Zheshang Securities.
SSE said introducing the market making mechanism is an important measure to optimize the fundamental rules on capital market and better leverage the role of STAR Market as "a testing field" for reform, helpful to improve market liquidity and enhance market resilience.
Since debut of the STAR Market, various rules and arrangements such as piloting registration-based initial public offering (IPO) reform, and other basic rule reforms over securities issuance, listing, information disclosure, trading, and delisting have weathered market challenges and laid foundation for introducing the market making mechanism.
Prior to the announcement, the pilot rules for securities companies to carry out market making business on STAR Market and related detailed implementation rules and guidelines have been released respectively by China Securities Regulatory Commission (CSRC) and SSE to facilitate the latter's future official launch of market making business on STAR Market.
In the following period, SSE will complete, pursuant to application of qualified securities firms, record filing for their market making business for specific stocks on STAR Market.
After completion of the record filing, market makers will start market making trading for related stocks on the sci-tech innovation board, the SSE announcement said. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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