NO 230 – APRIL 2012
Reform and innovation in Chinese capital markets

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WFE Focus January 2012
Regulation

Deutsche Börse to close First Quotation Board and strengthen SME market rules
Deutsche Börse plans to close its First Quotation Board, in its current form, on 15 December 2012, and to change the rules for the Entry Standard, its segment for SMEs. It is the segment with the lowest transparency requirements, and has experienced in the past suspected cases of market manipulation. From 1 July 2012, stricter rules will apply to the Entry Standard. In future, access to the Entry Standard will always require a public offering and thus a prospectus. In addition, businesses must have existed as a company for at least two years and have minimum share capital of EUR 750,000. Issuers will have to publish an electronic version of not only their annual report, but also a semi-annual report including balance sheet, P&L statement and notes to the accounts. As part of the restructuring, new requirements will also come into force for the Quotation Board (formerly the Second Quotation Board) from 1 October 2012. In future, the specialist will take on the applicant’s role in the Quotation Board and will thus be required to announce capital measures and other relevant information to the stock exchange without delay.

Shanghai Stock Exchange adopts new measure for fund market
The Shanghai Stock Exchange issued a new measure oriented toward the fund market. It requires that fund management companies regulate the operational procedure and anti-risk measures of ETFs by improving internal control mechanisms. Moreover, the guideline requires that a fund manager should do all he can in risk disclosure and investor education for the interests of fund holders.

Stock Exchange of Thailand introduces new listing rules for renewable energy power plants
The Stock Exchange of Thailand supports renewable energy power plants seeking to list on its Market for Alternative Investment (mai) by issuing new listing rules effective from 26 March 2012. Power plants meeting the new requirements are those using any kinds of renewable energy sources, such as solar, wind, water, biological, and biomass energy, with a market capitalization of over THB 500 m (approx. USD 16.2 m). They must also have power purchase agreement (PPA) signed with the government in order to generating secure revenues with commercial operation date for at least one year.

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