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To strengthen the front-line regulatory duties, maintain market order, prevent market risks, and protect the legitimate rights and interests of investors, SZSE has recently revised and improved the Guidelines of the Shenzhen Stock Exchange for Express Information Disclosure of Listed Companies. According to relevant officials from SZSE, the improvement of the express information disclosure system is a significant move to implement the spirit of the 19th CPC National Congress and National Financial Work Conference and an active measure to respond to the market change. It also embodies SZSE's determination to implement rigorous supervision and enhance the regulatory duties in the frontline.
Upholding the principle of "start smoothly and get risks under control", SZSE launched the express information disclosure pilot program in October 2011. In April 2015, it expanded the coverage of the express service and the disclosure duration. SZSE has formulated a series of rules to guarantee the safe operation of the express service from technical and operational perspectives. These rules include the Guidelines of the Shenzhen Stock Exchange for Express Information Disclosure of Listed Companies, Internal Standards and Procedures for Immediate Adjustment of the Companies in the Express Information Disclosure List, and Internal Standards and Procedures for Immediate Adjustment of the Express Disclosing Status for Different Categories of Announcements. Information disclosure of listed companies is sound in general, and the stable operation of the express service plays an important role in improving the efficiency of information disclosure by listed companies, urging market participants to perform their duties, releasing regulatory resources, and reducing the disciplinary and integrity risks. As the market continues to change, some phenomena and problems have also emerged. For example, some listed companies used the express announcements to follow hot issues or play up concepts, severely damaging the interests of small and medium investors, while some companies' announcements issued via the express service had significant impact on the market, severely affecting stable market operation.
SZSE improves the express information disclosure service by following three principles: First, adhering to the general direction of express information disclosure and making the express service within reach to most companies whose risks are under control and to their announcements. Second, keeping an eye on "key companies" and "key problems". SZSE will concentrate on major high-risk companies and major market issues, and strengthen advance supervision and push forward the supervision. Third, revising the rules and making dynamic assessment in a prudent manner. SZSE revised the auxiliary systems to the express service, improved the basis and rules for adjusting the scope of companies under the express service and the categories of announcements, and improved the periodic assessment working mechanism with dynamic adjustments made according to new market phenomena and problems.
According to the Guidelines of the Shenzhen Stock Exchange for Express Information Disclosure of Listed Companies, companies whose information disclosure assessment result is "D" and which have relatively high risks in information disclosure will not be included in the express service. Announcement pertaining to generous profit distribution, change of company name and commitments will excluded from the express service.
Relevant officials from SZSE indicated that a series of institutional arrangements are made in the newly revised Stock Exchanges Administration Measures to enhance the frontline regulatory duties of stock exchanges. To give full play to the regulatory responsibilities of stock exchanges, it is necessary to adjust the concept of supervision in a timely manner, review and evaluate the express service from the perspectives of the basic market system, risk prevention and control, and properly advance regulatory positions to promote proactive and preventive supervision, so that the quality and efficiency of the capital market would be improved. SZSE will continue to deepen all-round and rigorous supervision and regulation according to law, adhere to mission of safeguarding the legitimate rights and interests of the small, medium, and large investors, guide listed companies to improve corporate governance, regulate information disclosure, improve the quality and social image of listed companies, and promote the sound and stable development of the capital market.
