SZSE recently completed the evaluation of information disclosure by companies listed on the Main Board and the ChiNext Board in 2020. Among the 2,350 SZSE-listed companies evaluated, 417 received an A, accounting for 17.74%, 1,529 received a B, accounting for 65.06%, 308 received a C, accounting for 13.11%, and 96 received a D, accounting for 4.09%. Compared to the last evaluation period, the number of companies receiving an A or B rose by 1.43%, while that of companies obtaining a C or D declined by 1.43%, indicating a stable improvement in the overall quality of information disclosure by SZSE-listed companies.
The information disclosure evaluation is an important measure to urge listed companies, shareholders and relevant information disclosure obligors to disclose information truthfully, accurately, completely, timely and fairly, and improve the quality of listed companies. SZSE has conducted information disclosure evaluation annually since 2001. With the goal of improving the quality of listed companies, and a focus on deepening classified regulation, SZSE has continuously optimized the standards and methods for information disclosure evaluation and given full play to the role of information disclosure evaluation as positive guidance. In September 2020, based on the new changes in the market situation and the practices of information disclosure evaluation, SZSE released the Measures for Evaluation of Information Disclosure by Listed Companies (Revised in 2020) (the “Measures”). In the Measures, SZSE refined the methods, content, use of results, etc. of information disclosure evaluation, further improving the transparency and effectiveness of the evaluation mechanism.
The 2020 evaluation was the first evaluation conducted after the Measures took effect. The evaluation standards were clearer, the evaluation procedures more open and transparent, and the evaluation methods more diversified. On the one hand, the “positive items” included the implementation of information disclosure requirements, maintenance of investor relations, fulfillment of social responsibilities, etc. In practice, over 2,100 companies held the 2020 results announcement meeting, more than 2,200 companies disclosed their fulfillment of social responsibilities, and over 1,000 companies rolled out a share repurchase plan or cash dividend plan, reflecting a positive role the evaluation has played. On the other hand, the “negative items” mainly included major negative events, disciplinary punishments or regulatory measures against listed companies or related parties, etc. Failure to disclose major events in a timely manner, occupation of funds, violations in providing guarantee, or receiving complaints repeatedly would have a negative impact on the evaluation result of a listed company’s information disclosure.
In 2020, the proportion of companies receiving an A or B grew by 1.43 percentage points year on year, indicating a group of excellent listed companies with good information disclosure quality, a high level of standard operation, and strong awareness of integrity-based development is taking shape. 192 companies have obtained an A for three years straight. Yunnan Baiyao (000538), iFLYTEK (002230), Inovance (300124), and ZEMIC (300114) have been rated A for ten years straight. They have played a good exemplary role. In the meantime, SZSE earnestly performed the duties as the front-line regulator, continued to strengthen in-process and ex post regulation, and intensified targeted measures against violations of laws and regulations. During the evaluation period, SZSE sent out a total of 206 disciplinary punishment decisions, which involved 117 listed companies and 742 relevant responsible persons including shareholders, directors, supervisors and senior management members.
An official of SZSE said that improving the quality of listed companies is an intrinsic requirement to sustain the healthy development of the capital market. SZSE will earnestly practice the principles of “system building, non-intervention and zero tolerance” and the requirements of “standing in awe of the market, rule of law, professionalism and risks and pooling the efforts of all sides to develop the capital market”, and adhere to the work philosophy of being “open-minded, transparent, honest and impartial”. With information disclosure as the core and investors’ demand as the orientation, we will continue to optimize rules and systems, effectively perform the duties as the front-line regulator, and actively give play to the regulatory interaction mechanism. We will advance scientific regulation, classified regulation, specialized regulation, and continuous regulation in depth, increase support to companies with excellent information disclosure quality, and strengthen compliance oversight of the “critical minority” in companies with poor information disclosure quality. We will adopt various measures simultaneously to improve listed companies’ information disclosure quality and level of standard operation, and focus on cultivating a group of high-quality listed companies, so as to build a sound capital market ecosystem.
