CHINA: SZSE Amends the Appraisal Measures for Information Disclosure

According to a principal from SZSE, the adjustment involves routine announcement disclosures, business handling and increased flow of information disclosure regarding negative lists, further highlights the overall performance appraisal of information disclosure and improves the comprehensive appraisal mechanism that takes listed companies as the core and covers companies’ controlling shareholder, de facto controller, directors, supervisors, senior management and key personnel of information disclosure. On the one hand, SZSE optimizes the announcement appraisal method. Appraisal items are consolidated and scoring flexibility is increased to reflect the appraisal result in a more reasonably way. In addition, supervision is intensified over input mistakes of key data in announcements and extreme events like operational risks. Also, scoring weight of important and complicated announcements on extraordinary matters is stressed to ensure fair and rational appraisal result. On the other hand, SZSE has amended the appraisal content and negative list indicators in the Appraisal Measures. In view of the new situations of capital market and the supervision practices and considering the influence of different companies’ information disclosure differences on appraisal result, SZSE will bring the following factors into appraisal: the ratio of disclosure supplements or changes, the degree of cooperation by shareholders and other information disclosure obligors, the protection of investors’ rights and interests, and the extent of cooperation by companies or their interested personnel in developing regulatory work, and the administrative regulatory measures taken by securities regulatory bureaus.

The SZSE principal said that in order to leave listed companies a proper transitional period, the amended appraisal mechanism will be applied from the appraisal year of 2017 onward and stressed that information disclosure systems are the cornerstone of securities market. Listed companies and interested information disclosure obligors should further enhance their awareness and strictly perform their obligation according to securities laws and regulations and the rules of exchange to deliver sound performance and improve quality in the information disclosure of listed companies.

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