Recently SZSE has finished the appraisal of listed companies in the aspect of information disclosure in 2016. As is revealed by the appraisal, companies listed in the Shenzhen market has done a fairly good job in information disclosing over the past year. Listed companies rated with A and B account for 85.55%, with A-rated listed companies representing 20.17% of the total listed companies in the Shenzhen market. On the other side, with the tightening up of regulation over information disclosure, companies with C-rating have risen to 14.45%, up from 14.32% in last year, and companies with D-rating have increased by 0.49% year on year.
Among 477 companies listed on the main board, 84 are with A-rating, accounting for 17.61% of the companies appraised; 286 with B-rating, accounting for 59.96%; 90 with C-rating, accounting for 18.87%; 17 with D-rating, accounting for 3.56% of listed companies under evaluation.
Among 822 companies listed on the SME board, 189 are with A-rating, accounting for 22.99% of the companies appraised; 531 with B-rating, accounting for 64.60%; 79 with C-rating, accounting for 9.61%, 23 with D-rating, accounting for 2.28% of listed companies under evaluation.
Of 570 companies listed on the ChiNext board, 104 are with A-rating, representing 18.25% of the companies appraised; 405 with B-rating, representing 71.05%; 49 with C-rating, representing 8.60%, 12 with D-rating, representing 2.10% of listed companies under evaluation.
As shown by the appraisal results over the past few years, of main board listed companies, CMSK (formally as ‘CM Real Estate’) has been awarded with A-rating for 14 consecutive years, Yunnan Baiyao for 11 consecutive years, Guoyuan Securities for 10 years. Of SME board listed companies, Suning Commerce has been awarded A-rating for 12 years consecutively, Bank of Ningbo, IflyTech and 3 other companies for 9 years. Of ChiNext board listed companies, Hanwei Electronics, Lanxun and Inovance have been awarded with A-rating for 7 years on end. The foregoing companies have set a good example in the market with their standard operation and the quality of their work in information disclosing. Conversely, there are also companies with D-rating such as Quanxinhao, TSD, Extra ST CLTG and Geeya, who have seriously violated the rules and regulations on information disclosure with false records and misleading representations, or with fund occupation by the controlling shareholder for non-operating purpose, or with violations in provision of external aid or guarantee, or failing to disclose periodic reports with the prescribed period, or whose annual report auditor refused to express an opinion thereon, or who have been publicly denounced. SZSE shall tighten up regulation, and urge the listed companies to further standardize their operation and to center round the need of investors in information disclosure, and to defend the legitimate rights and interest of investors, especially those of medium and small investors.
As expressed by an official from SZSE, appraisal of the work on information disclosure of listed companies is an institutional arrangement. Since the implementation of the appraisal in 2001, SZSE has been trying to optimize the appraisal latitude, format and application of the results, greatly improving the work of information disclosure and the standardization of corporate operation. Since 2016, guided by China Securities Regulatory Commission, SZSE shall impose strict regulation overall in accordance with laws, strengthen first-line regulation on information disclosing of listed companies, and continuously optimize the honor roll and blacklist of listed companies concerning information disclosing. Next, SZSE shall, by drawing on the work on appraisal of information disclosure, continue to improve the regulation system for information disclosure, build a comprehensive management system for information disclosing, and enhance the ability and deterrence of first-line supervision. SZSE shall improve information disclosing in the aspects of quality and efficiency, intensify the training of directors, supervisors and senior executives, and raise listed companies’ awareness of self-discipline, compliance, and honesty, and instruct listed companies to observe the laws and regulations and to fulfill their duties and responsibilities.
