CHINA: Shanghai Stock Exchange Listing Rules Amended

Monday April 23 2018

On 20^th April, 2018 the Shanghai Stock Exchange amended the Audit Procedures contained within its Listing Rules:

• Article 3.1.6 is amended to state: A listed company shall establish an audit committee under the board of directors. The internal audit department shall be responsible to the audit committee and report to the audit committee. The independent directors of the audit committee shall account for more than half and act as convener, and at least one independent director is an accounting professional.
• Article 6.5 has been introduced to state: An accounting firm utilised by a listed company to provide audit, net asset verification and other related services shall have the qualification to execute securities and futures related businesses.

The amended Shanghai Stock Exchange Listing Rules (Amended in April 2018) have been approved by the Board of Directors of this Exchange and submitted for approval by the China Securities Regulatory Commission (CSRC) . The rules will come into effect once approval from the CSRC is granted.

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