On the evening of September 17, the CSRC issued the announcement on expanding the scope of pilot listing of Red Chip Enterprises in China (hereinafter referred to as the "announcement"), which shall enter into force as of the date of announcement.

According to the announcement, except for the notice of the General Office of the State Council transmitting some opinions of the Securities Regulatory Commission on launching pilot projects of issuing stocks or depositary receipts in innovative Enterprises (hereinafter referred to as "the notice"), the Internet, big data, cloud computing, artificial intelligence, software and integrated circuits, high-end equipment manufacturing and biomedical industry are clearly defined. Red-chip enterprises belonging to the new generation of information technology, new energy, new materials, new energy vehicles, green environmental protection, aerospace, marine equipment and other high-tech industries and strategic emerging industries will be included in the scope of the pilot project.

Red-chip enterprises of great national strategic significance shall apply for inclusion in the pilot project and shall not be subject to the restrictions of the aforementioned industries.

Red chip enterprises apply for inclusion in the pilot project, it shall meet the other conditions stipulated in the notice, such as the measures for the implementation of the Supervision of domestic issuance of stocks or Depositary receipts and listing of pilot innovative Enterprises, and the announcement on the relevant arrangements for the domestic listing of innovative pilot Red-chip Enterprises.

Tian Lihui, dean of the Institute of Financial Development of Nankai University, said that the A-share market welcomes high-quality red-chip enterprises to return to listing, especially those in high-tech industries and strategic emerging industries. Expanding the scope of the pilot project reflects the development direction of the national strategy of serving the capital market, and contributes to the development and growth of China's high-tech industries and strategic emerging industries. The return of high-quality enterprises will not impact the market valuation, but can enhance the attractiveness of the market.

Chen Li, chief economist and director of the Research Institute of Chuancai Securities, analyzed that the return of red-chip enterprises to listing is important for both enterprises and investors. On the one hand, some high-tech enterprises in line with the national strategy can return to the A-share market, reflecting the strong inclusiveness of China's capital market. On the other hand, investors can also better participate in the growth of excellent enterprises, reflecting the concept of diversified development of the market. In addition, the document emphasizes the support for enterprises in line with the national strategic direction, reflecting the state's policy preference to encourage the high-quality development of industries and enterprises.