Shenzhen Stock Exchange recently convened a work conference on self-discipline supervision over listed companies, where relevant work under new situations was studied and deployed. The conference pointed out that the year of 2015 is crucial for deepening reforms in an all-round way with profound changes happening to the capital market from external environments to internal mechanism and new topics as well as new challenges confronting the self-discipline supervision work over listed companies. SZSE will focus its efforts on promoting regulatory transition, explore and build up a new supervision mechanism in the course and afterwards of information disclosure, and constantly improve the level of supervision under the rule of law, so as to earnestly implement the work deployment of the National Work Conference on Securities and Futures Regulation and the spirit of CSRC at the Communication Meeting on Supervision over Listed Companies on March 31.
Establishing a new supervision mechanism in the course and afterwards of information disclosure is an important way for SZSE to perform its due duties, as pointed out at the conference. Supervision in the course can correct and stop misconducts in a timely manner, effectively guard against and dissolve market risks, and maintain the market order in an open, fair and impartial manner. SZSE should be oriented by problems and risks, vigorously promote classification regulation, orderly implement the regulation based on different industries, strengthen regulation with scientific techniques, and comprehensively enhance the ability and level of supervision over listed companies.
Specifically speaking, SZSE’s supervision work over listed companies under new situations will focus on the following aspects:
First, vigorously promoting regulatory transition and realizing open and transparent supervision. SZSE will establish and improve the public mechanism of regulatory correspondences and companies’ response letters, expand the scope of disclosure in good order, and explore the periodic or real-time disclosure of processes and results of information disclosure appraisals. SZSE will also study and formulate a Power List, Responsibility List and Negative List, further optimize the dynamic cleaning-up mechanism of review and registration items, and improve the efficiency of processing such items. Channels like press conferences, Weibo, WeChat, etc. will also be used to strengthen public opinion guidance and social supervision
Second, optimizing rules for information disclosure and innovating methods of information disclosure with orientation of investors’ demands. Coordinating with the reform of registration system, SZSE will revise the self-discipline rules such as Stock Listing Rules and Instructions on Standard Operations of Listed Companies, and streamline and integrate the memorandum for information disclosure business. Taking the chance of Shenzhen-Hong Kong Stock Connect, SZSE will have in-depth analysis of the difference of information disclosure between Hong Kong and Shenzhen markets, and study and solve the collaborative problems of cross-market and cross-border information disclosure. SZSE will optimize the compulsory information disclosure aiming at real-time, customization and concise as goals, and encourage voluntary, interactive and characteristic disclosure.
Third, promoting the Information Disclosure Express Practice in an all-round way and propelling market players back to their due responsibilities. SZSE will expand the scope of companies by including those with information disclosure appraisal results of D and new-listings into the Practice, and expand the scope of announcements and realize complete isolation of sensitive information. Based on the morning and non-trading days express disclosure launched earlier, SZSE will study to further extend the time window for after-market disclosure, so as to improve the efficiency of express disclosure.
Four, optimizing classified supervision and risk screening and enhancing supervisory efficiency with orientation of problems and risks. SZSE will optimize the indicator system for classified supervision with big data regulatory theory in a bid to improve the ability to discover problems and risks. SZSE will also explore to implement the targeted afterwards review mechanism with some companies exempting from reviews and some companies of high risks being cross-reviewed. A system of multi-person supervision group will also be established to strengthen the restriction and balance mechanism.
Five, orderly promoting supervision based on different industries and improving supervisory professionalism. SZSE will focus efforts on promoting industrial-classified supervision on emerging industries, industries cannot be fully reflected characteristics under existing rules and high-risk industries. Information disclosure guidance for industries like Internet and energy conservation and environment protection will be introduced, and information disclosure guidance for industries like real estate, mining and animal husbandry will be studied and formulated.
Six, strengthening studies on new patterns and new situations and increasing the effectiveness and capability of quick response in supervision. SZSE will strengthen afterwards supervision and carry out the special supervision work of “looking back” over M&A transactions. Expert review mechanism of significant new events will be established as so to build up a quick review and feedback mechanism through methods like legal analysis, expert argumentation and market analysis.
Seven, exploring Big Data supervision, realizing regulation with scientific techniques, and enhancing the level of regulatory cooperation and sharing. Based on the mass data of financial and non-financial information disclosure of listed companies, SZSE will gradually realize the cross comparison of companies’ information disclosure with public opinion information, misconduct reporting, and companies’ historic disclosure by exploring the use of big data technologies, such as “Internet Search”, “Text Mining”, “XBRL”, “Cloud Computing”, etc. SZSE will also further optimize the information sharing platform, and enhance the function of the existing financial analysis system.
