In order to assist the innovative enterprises to enter into the capital market, the TPEx has established the new board, Pioneer Stock Board (PSB), within the Emerging Stock Market. The amended Rules Governing the Review of Emerging Stocks for Trading on the TPEx and relevant rules regarding PSB has been approved for recordation by the Financial Supervisory Commission on 30 March, 2021. TPEx then announced that the amended rules and relevant documents takes effect from the date of promulgation. Accordingly, with the addition of PSB, the Emerging Stock Market on TPEx will comprise of two sub-boards, i.e., the "Emerging Stock Board” (ESB) and the “Pioneer Stock Board” (PSB).
The key features of PSB are as follows: First, the issuer shall be from one of the "Six Core Strategic Industries" or other innovative industries. Second, in order to accelerate the entry into capital market, the issuer could apply to register its stock on the PSB and together with the application it also files to conduct public issuance of the stock. Third, the PSB stocks buyers are limited to qualified investors. Besides, TPEx adopts an automatic matching and execution mechanism (applying to call auction and continuous trading) for the PSB stocks trading, with the recommending securities firms acting as liquidity providers.
The trading method for PSB stocks is mostly the same as that for TPEx listed stocks. Investors may engage securities brokers to trade PSB stocks whose daily price limit is 20%. However, a natural person who is a qualified investor should sign a Risk Disclosure Statement before trading. The TPEx adopts instantaneous price stabilization measures with the 7% implementation standard and the same prescribed time period as TPEx listed stocks.
To comply with the schedule of establishment of trading and information reporting systems, the PSB is expected to be launched in the 3rd quarter, 2021.