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Exchanges revise rules to boost info oversight
(Shanghai Daily)
Updated: 2007-03-27 15:03 China's stock markets have revised listing rules to reduce unnecessary trade suspension while boosting oversight of information disclosures, according to draft regulations seen by Shanghai Daily yesterday.
Listed firms won't need to stop trading of their shares when releasing annual reports, making routine disclosures or having shareholders' meetings, according to the rules obtained from the Shenzhen Stock Exchange. The amended rules, for which opinions are being sought from public companies until Sunday, will likely be implemented late next month after gaining regulatory approval, sources familiar with the matter said. The revision "is aimed at regulating information releases of listed companies and the people involved in an effort to bolster the quality of disclosures," the Shenzhen bourse said in a statement. Other adjustments include a tightening of rules to delist companies with poor quality and liquidity. Firms which fail to unveil earnings reports will be delisted three months after being warned by the bourses, the rules said. In addition, firms will face expulsion if their combined trading volume in 120 consecutive sessions is lower than three million shares, the rules said. If firms get an adverse opinion or have an opinion disclaimer clause from auditors, they will also be subject to delisting procedures. Companies must consult with big shareholders or other related parties to issue a clarification if market rumors boost their share prices, according to the regulations. Public firms also have to disclose their plans to manage information disclosures on the exchanges' websites, and only a deputy general manager or a board member can serve as a board secretary. Listed companies must disclose information on the designated websites of the exchanges if any of their officials, including spokespeople, trade shares of their firms, the revised rules stipulate. China last year revised its securities and company laws as part of moves to change share-trading rules and extend more power to stock exchanges to curb financial crimes. (For more biz stories, please visit Industries)
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