CHINA: Shenzhen Stock Exchange Simplifies and Integrates Information Disclosure Memos for the Main Board

Monday April 20 2015

In a bid to deepen regulatory transition, further optimize self-discipline rules for information disclosure and enhance its regulatory efficiency, Shenzhen Stock Exchange recently completed the amendments to Information Disclosure Memos for Companies Listed on the Main Board, which has been promulgated in the Special Business Zone.

The amendments are focused on the following aspects:

• restrictions on some information disclosure are loosened, including “abandonment of rights”, “providing of external financial aid” and “deposits, loans and other financial business with related financial companies”, and the independent judgment and disclosure requirements of the board of directors of listed companies is strengthened.
• some disclosure requirements are added, deleted or revised according to the multi-tier information disclosure regulation and the latest changes of relevant business rules of SZSE, enhancing the conciseness, readability and effectiveness of information disclosure.
• new disclosure requirements are added in a bid to reflect the new business and products emerging in the markets. For example, information of preferred stocks is required to disclose in periodic reports.
• the framework of the memos is determined according to two categories i.e. information disclosure by listed companies and regulatory businesses, and then the contents of chapters are set according to sub-categories of specific businesses. The memos basically cover the whole process of related businesses, which help listed companies to comprehensively and fully grasp the disclosure requirements on related businesses.

Click on the link above for further details.