Chapter 1 General Provisions Article 1 In order to regulate the activities of regional equity markets, protect the legitimate rights and interests of investors, prevent regional equity market risks, and promote the healthy development of regional equity markets, according to the "People's Republic of China** These Measures are formulated according to the Securities Law of the People's Republic of China, the Company Law of the People's Republic of China, and the Notice of the General Office of the State Council on Regulating the Development of Regional Equity Markets. Article 2 These Measures shall apply to the non-public issuance and transfer of small, medium and micro enterprise stocks, corporate bonds convertible into stocks and other securities recognized by relevant departments of the State Council in the regional equity market, as well as related activities. Article 3 The regional equity market is a place that provides facilities and services for the non-public issuance, transfer and related activities of securities for small, medium and micro enterprises within the provincial administrative region where they are located.

Except for regional equity markets, other types of local trading venues are not allowed to organize securities issuance and transfer activities. Article 4 The issuance, transfer and related activities of securities in the regional equity market shall comply with laws, administrative regulations and rules and other provisions, and follow the principles of fairness, voluntariness, good faith and self-bearing risks. Fraud, insider trading, market manipulation, and illegal fund-raising are prohibited. Article 5 The provincial people's government shall supervise and manage the regional equity market in accordance with the law and be responsible for risk disposal.

The provincial people's government designates local financial regulatory departments to assume the daily supervision and management responsibilities of the regional equity market, investigate and deal with violations of laws and regulations in accordance with the law, and organize and carry out risk prevention and disposal work.

Provincial people's governments shall formulate implementation details and operating methods for regional equity market supervision and management in accordance with laws, administrative regulations, relevant provisions of the State Council and these Measures. Article 6 The China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) and its dispatched agencies shall guide, coordinate and supervise the regional equity market supervision and management work of local financial regulatory authorities, supervise and inspect the standardized operation of the market, and conduct market supervision and inspection. Providing early warning reminders and handling supervision for risks.

Local financial regulatory authorities and the China Securities Regulatory Commission’s local offices should establish a regional equity market regulatory cooperation and information sharing mechanism. Article 7 The regional equity market operating agency (hereinafter referred to as the operating agency) is responsible for organizing the activities of the regional equity market and conducting self-regulatory management of market participants.

Each province, autonomous region, municipality directly under the Central Government, or city under separate state planning shall not have more than one operating agency within its administrative region. Article 8 An operating agency shall meet the following conditions:

(1) A legal person established in accordance with the law;

(2) Business premises, business facilities, working capital, Professionals;

(3) Sound corporate governance structure;

(4) Sound risk management and internal control systems;

(5) Legal, Administrative regulations and other conditions stipulated by the China Securities Regulatory Commission.

Securities companies can invest in or control operating institutions.

Anyone who falls under the circumstances stipulated in Article 108 of the Securities Law of the People's Republic of China, or is prohibited from entering the securities market by the China Securities Regulatory Commission and is still in the period of prohibition, shall not hold any position. The person in charge of the operating organization. Article 9 The provincial people's government shall supervise and manage operating institutions, announce the list of operating institutions to the public, and report to the China Securities Regulatory Commission for filing. Without announcement and filing, no unit or individual may organize or carry out activities related to regional equity markets. Chapter 2 Securities Issuance and Transfer Article 10 When an enterprise issues stocks in a regional equity market, it shall meet the following conditions:

(1) Have governance that complies with the provisions of the "Company Law of the People's Republic of China" structure;

(2) There are no false records in the financial accounting report for the most recent fiscal year;

(3) There are no ongoing major illegal activities;

(4) Other conditions stipulated by laws, administrative regulations and the China Securities Regulatory Commission. Article 11 To issue corporate bonds convertible into stocks in the regional equity market, an enterprise shall meet the following conditions:

(1) The conditions specified in Article 10 of these Measures;

(2) The bond prospectus contains specific methods for converting corporate bonds into stocks;

(3) There is no ongoing default or delay in payment of principal and interest on the corporate bonds or other debts issued by the company. ;

(4) Other conditions stipulated by laws, administrative regulations and the China Securities Regulatory Commission. Article 12 Without approval from the relevant departments of the State Council, securities other than stocks and corporate bonds convertible into stocks may not be issued in the regional equity market. Article 13 Securities issued in the regional equity market shall be issued to qualified investors. The cumulative number of holders of a single security shall not exceed 200, unless otherwise provided by laws and administrative regulations.

The qualified investors mentioned in the preceding paragraph shall have strong risk identification and tolerance capabilities and meet one of the following conditions:

(1) Securities companies, futures companies, and fund management companies The company and its subsidiaries, commercial banks, insurance companies, trust companies, finance companies and other financial institutions established with approval in accordance with the law, as well as subsidiaries of securities companies, subsidiaries of futures companies, and private equity fund managers that have been filed or registered in accordance with the law;

(2) Investment plans managed in accordance with the law by financial institutions such as asset management products of securities companies, products of fund management companies and their subsidiaries, asset management products of futures companies, bank financial products, insurance products, trust products, etc.;

(3) Social security funds, enterprise annuities and other pension funds, charity funds and other social welfare funds, and private equity funds registered in accordance with the law;

(4) Established in accordance with the law and with net assets not less than a certain level Legal persons or other organizations with indicators;

(5) Own financial assets in compliance with the provisions of the China Securities Regulatory Commission with a value of no less than RMB 500,000 within a certain period, and have more than 2 years of investment experience in financial products or 2 Natural persons with more than 10 years of experience in the financial industry and related work.