Vanke can be listed on A shares, but Evergrande has not applied for A shares, so it has not been listed on A shares yet

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1. A Shares

A shares, that is, RMB common stocks, are issued by companies registered in China and listed domestically. Their face value is expressed in RMB and are available to domestic institutions, organizations or individuals (from April 1, 2013, domestic Residents of Hong Kong, Macao and Taiwan can open A-share accounts) to subscribe and trade common stocks in RMB.

The English letter A has no practical meaning and is only used to distinguish RMB ordinary stocks and RMB special stocks.

A-shares are not physical stocks. They use paperless electronic accounting and implement a "T+1" delivery system. There is a price limit (10%). The participating investors are mainland Chinese institutions or individuals. The stocks of listed companies in China include A shares, B shares, H shares, N shares and S shares.

On January 27, 2020, the China Securities Regulatory Commission issued a notice to all securities and futures exchanges. All securities and futures exchanges will be closed on January 31 and will open as usual from February 3.

II. A-share listing conditions

Qualification requirements

1. The issuer shall be a joint-stock company established in accordance with the law and legally existing. With the approval of the State Council, when a limited liability company is changed into a joint-stock company in accordance with the law, it can publicly issue shares by way of formation.

2. The issuer shall continue to operate for more than 3 years after the establishment of a joint-stock company, unless approved by the State Council. If a limited liability company is converted into a joint-stock company based on the original book net asset value, the continuing operation period can be calculated from the date of establishment of the limited liability company.

3. The issuer's registered capital has been paid in full, the property rights transfer procedures for the assets used by the promoters or shareholders to contribute capital have been completed, and there are no major ownership disputes over the issuer's main assets.

4． The issuer's production and operations comply with laws, administrative regulations and the company's articles of association, and comply with national industrial policies.

5. There have been no major changes in the issuer's main business and directors and senior managers within the past three years, and there have been no changes in the actual controller.

6． The issuer's equity is clear, and there are no major ownership disputes over the issuer's shares held by the controlling shareholder and shareholders controlled by the controlling shareholder and actual controller. [7]

Independence requirements

1. The issuer should have a complete business system and the ability to operate independently directly facing the market.

2. The issuer's assets are complete: a production enterprise should have production systems, auxiliary production systems and supporting facilities related to production and operations, and legally own land, factories, machinery and equipment related to production and operations, as well as ownership of trademarks, patents and non-patented technologies or Right to use, with independent raw material procurement and product sales systems; non-production enterprises should have business systems and related assets related to operations.

3. The issuer’s personnel are independent: The issuer’s general manager, deputy general manager, financial controller, board secretary and other senior management personnel are not allowed to hold other positions other than directors and supervisors in the controlling shareholders, actual controllers and other companies controlled by them. , shall not receive salary from the controlling shareholder, actual controller and other enterprises controlled by them; the issuer's financial personnel shall not work part-time at the controlling shareholder, actual controller and other enterprises controlled by them.

4． Financial independence of the issuer: The issuer should establish an independent financial accounting system, be able to make financial decisions independently, and have standardized financial accounting systems and financial management systems for branches and subsidiaries; the issuer shall not have any conflicts with controlling shareholders or actual controllers. and other companies under its control use bank accounts.

5. Institutional independence of the issuer: The issuer shall establish and improve its internal operation and management organization, independently exercise its operation and management powers, and shall not have any organizational confusion with its controlling shareholder, actual controller, or other enterprises controlled by it.

6． The issuer's business is independent: The issuer's business should be independent from the controlling shareholder, actual controller and other enterprises controlled by it, and there should be no horizontal competition or unfair association with the controlling shareholder, actual controller and other enterprises controlled by it. trade.

7. The issuer must not have other serious deficiencies in its independence.

Standard operation

1. The issuer has established and improved the shareholders' meeting, board of directors, board of supervisors, independent directors, and board secretary systems in accordance with the law, and relevant institutions and personnel can perform their duties in accordance with the law.

2. The issuer's directors, supervisors and senior managers have understood the laws and regulations related to stock issuance and listing, and are aware of the legal obligations and responsibilities of listed companies and their directors, supervisors and senior managers.

3. The issuer's directors, supervisors and senior managers meet the qualifications stipulated in laws, administrative regulations and rules, and must not have the following circumstances: have been banned from the securities market by the China Securities Regulatory Commission and are still in the ban period; within the current 36 months Received administrative punishment from the China Securities Regulatory Commission, or received public condemnation from the stock exchange within the current 12 months; was opened for investigation by judicial authorities for suspected crimes, or was opened for investigation by the China Securities Regulatory Commission for suspected violations of laws and regulations, and no clear conclusion has yet been made.

4． The issuer's internal control system is sound and effectively implemented, and can reasonably guarantee the reliability of financial reports, the legality of production and operations, and the efficiency and effectiveness of operations.

5. The issuer's articles of association have clarified the approval authority and review procedures for external guarantees, and there are no illegal guarantees for controlling shareholders, actual controllers and other companies they control.

6． The issuer has a strict fund management system and shall not have funds occupied by the controlling shareholder, actual controller and other enterprises controlled by it through borrowing, repaying debts, advancing funds on behalf of the company, or in other ways.

Financial indicators

1. Net profits in the current three fiscal years are all positive and the cumulative amount exceeds RMB 30 million. The net profit is calculated based on the lower before and after deducting non-recurring gains and losses.

2. The cumulative net cash flow generated from operating activities in the current three fiscal years exceeds RMB 50 million; or the cumulative operating income in the current three fiscal years exceeds RMB 300 million.

3. The total share capital before issuance shall be no less than RMB 30 million.

4． At the end of the current period, the proportion of intangible assets (after deducting land use rights, water surface breeding rights, mining rights, etc.) to net assets shall not exceed 20%.

5. There are no unrecovered losses at the end of the current period.