Wednesday June 24 2020
News Source: Global Exchanges
Focus: Stock Exchange Regulation
On 23rd June 2020, the Shenzhen Stock Exchange (SZSE) released the integrated and revised business guides for listed companies, including 11 guides for the Main Board (SME Board) and 12 guides for the ChiNext board, marking the basic completion of the improvement of the system of self-discipline regulation rules for listed companies after more than one year of evaluation, planning, adjustment and refinement.
The three-level system of self-discipline regulation systems for listed companies, with listing rules at its core, guidelines for standard operation and guidelines for information disclosure of sectors and special business as its trunks, and business guides as its supplement, has further improved.
In the rule improvement, which lasted more than one year, SZSE reconstructed the structure, content, and format of the system of self-discipline regulation rules for listed companies in three steps:
Establishing a three-level system and clarifying the positioning of rules:
SZSE abolished all memos for the Main Board, the SME Board and the ChiNext Board and further streamlined the levels of self-disciple regulation rules for listed companies, forming a simpler, easier-to-implement, more transparent and more efficient three-level system of rules.
Refining content of rules to meet market needs:
- SZSE balanced disclosure effect and cost revised and refined the guidelines for standard operation and 18 guidelines for information disclosure of sectors, and deregulated and cancelled control that does not adapt to development needs, to ease the burdens on enterprises.
- Based on market needs, SZSE promptly released three guidelines for information disclosure of special business, namely, the guidelines for information disclosure of major assets restructuring, employee stock ownership plans, and transactions and related-party transactions.
- On the basis of in-depth analysis of industry characteristics, SZSE formulated and issued four guidelines for information disclosure of sectors including the guidelines for information disclosure of the industrial robot sector, the integrated circuit sector, the lithium battery sector, and the non-metallic building materials sector.
Restructuring business guides and improving user experience:
- Following the vein of special business, SZSE established six categories of business guides based on business types, namely, issuance, listing & circulation, periodical reporting, stock ownership incentive, general meeting, announcement format and general information disclosure business operation.
- SZSE integrated similar business content. For example, nine business guides and one piece of content in the information disclosure guidelines were combined into one information disclosure business guide. Redundant content was deleted, and operation procedures were upgraded.
- SZSE supplemented and improved the business chain. For example, it formulated the business guide for issuance of convertible corporate bonds to nonspecific objects, to realize the full coverage of content.
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