CHINA: Shanghai Stock Exchange introduce annual report auditing regulation

Tuesday May 6 2014

The 2014 Meeting on National Securities and Futures Regulatory Work has arranged the work on regulatory transformation, in which it points out that securities exchanges will be in charge of front-line regulation on the information disclosure related to periodical reports and temporary announcements of listed companies, establish authority on information disclosure regulation, and strengthen self-disciplinary management.

In line with this requirement, the Shanghai Stock Exchange (SSE) has, in this year’s annual report auditing, carefully considered such issues as how to promote transformation of self-disciplinary regulation and how to do well in front-line regulation work on investors-oriented information disclosure, adopted an array of measures on in-process and aftermath regulation, and explored new ideas on regulatory transformation in practice, with some good results achieved.

The measures adopted by the SSE include;

• Ensuring the normal operation of “Direct Channel for Information Disclosure”
• Urging listed companies to timely correct and clarify typical mistakes in their annual reports.
• Transfer the focus of annual report examination to the matters concerned by investors. In 2014, the SSE will orient itself to investors’ demands and focus on examining matters concerned by them, such as corporate business modes, industry tendencies, risk disclosure, financial prediction, and other key information that may exert great influence on their decisions.
• Deal with illegal behaviours in information disclosure.

Click on the above link for further details.