Shanghai Stock Exchange Releases Report On Work Of Self-Regulatory Management In 2011

The Shanghai Stock Exchange (SSE) released the "Report on the Work of Self-regulatory Management in 2011" today. According to the report, the SSE examined a total of 36,482 announcements of listed companies, post-checked 3,652 periodic reports, imposed temporary trading suspension and continuous trading suspension of shares for 3,235 and 484 times respectively, and issued 852 regulatory documents in 2011. Besides, it further improved relevant regulations and regulatory rules about information disclosure, providing listed companies with clear and detailed stipulations for standardized operation and information disclosure.

As stated in the report, in 2011, the SSE, in terms of self-regulatory management, made major efforts on the following aspects of work. First of all, it went all out to provide support and guarantee for the regulation by optimizing the system of business rules and perfecting the law enforcement mechanism of self-regulatory management. In this respect, the SSE, in light of the united deployment of regulatory work, played an active role in providing support and guarantee for the regulation by focusing on the sorting and improvement of business rules as well as the optimization of disciplinary mechanism.

Besides, the SSE made new achievements in self-regulatory management by keeping toughening the supervision on listed companies and expanding the regulatory scope. On one hand, it tightened the regulation on listed companies and promoted the construction of the blue chip market. In particular, regarding the optimized regulation on merger, acquisition and reorganization as well as the improved services for the reinforced rationalization of listed companies, it accepted 47 companies for access to the procedures of significant assets reorganization in 2011, among which 25 companies disclosed the announcements on reorganization upon examination on information disclosure and verification in the secondary market. Moreover, 65 companies completed merger, acquisition and reorganization. Among the 65 companies, 40 companies completed significant assets reorganization tasks and 25 ones changed actual controllers. On the other hand, it strengthened the self-regulatory management of members, supported the members in the development of innovative businesses, formulated and issued the "Professional Evaluation Measures on Implementation Schemes for Pilot Members' Innovative Businesses", created an expert group for the evaluation of innovative businesses, and completed the professional evaluation on the agreed repurchase securities trading business for 6 pilot companies and the collateralized quotation repo of bonds for 15 ones. Furthermore, the SSE toughened the regulation on the market trading, improved the efficiency in regulation and strengthened the regulatory enforcement.

In 2012, the SSE will be faced with more pressure and challenges in the self-regulatory management as a severe test will fall on the domestic economy and the global economy and the external environment will be more complicated for the development of the capital market. Therefore, the SSE, by closely following and earnestly implementing the requirements of the Central Economic Work Conference, the National Financial Work Conference and the National Work Conference on Securities and Futures, will further give play to the active role of the blue chip market, offer better services for the scientific development and transformation of the real economy in China, effectively prevent and resolve the risks in the financial market, and push forward the suitability and effective regulation.

Specifically, the SSE will do the tasks as follows. First, it will strengthen the risk monitoring and anticipation and prevent the systematic risks of the market. Second, it will lay emphasis on the key points in the regulation and work out new measures for improving the regulation on listed companies. Third, it will deepen the management of members and non-members and drive the innovation and development of members' businesses. Fourth, it will cement the initiative regulation and risk monitoring and toughen the regulation on the market trading. Fifth, it will stabilize the regulatory rules and perfect the mechanism of integrity regulation.