The high-quality development of listed companies cannot be divorced from sound investor relations management. The performance explanation meeting is an important carrier for communication between listed companies and investors and a major channel for investors to understand periodical reports and get comprehensive knowledge of listed companies. It is of positive significance to encouraging listed companies to improve governance and fostering a culture that respects investors.
After more than three decades’ development, SZSE-listed companies and investors have been growing increasingly in number, and SZSE has become one of the most dynamic and promising capital markets in the world. SZSE has always been attaching great importance to the communication between listed companies and investors and has been guiding listed companies in this respect. Since 2010, SZSE have proposed holding annual report performance explanation meetings in the original Guidelines for the Standard Operation of Listed Companies on the SME Board and Guidelines for the Standard Operation of Listed Companies on the ChiNext Board. This year, to further carry out the guiding principles of the Opinions of the State Council on Further Improving the Quality of Listed Companies and conscientiously implement relevant requirements of the campaign to improve the governance of listed companies, SZSE has actively organized and urged listed companies to hold 2020 performance explanation meetings, and taken various measures simultaneously to guide boards of directors to establish a sound and long-term communication & interaction mechanism with investors and to further standardize corporate governance and improve information disclosure quality.
Focusing on improving quality and effectiveness and guiding and mobilizing listed companies. In late February, with a focus on improving the quality of performance explanation meetings, SZSE issued a special notice asking companies with large market influence and of great social attention such as CSI 300 companies, dual-listed A+H companies, listed companies controlled by central government enterprises and ChiNext Board-listed companies to hold a performance explanation meeting within 15 trading days after releasing annual reports, to set a good example in the whole market. In the meantime, SZSE urged the critical minority such as chairmen of the board and general managers to attend the performance explanation meeting in person in principle, in a bid to improve the depth, breadth and effect of the direct interaction between companies and investors. Listed companies generally attached great importance to the matter and actively held performance explanation meetings. As of April 24, among over 1,400 SZSE-listed companies who had released their 2020 annual reports, more than 900 had issued a notice on convening a performance explanation meeting, a significant increase in number over the corresponding period last year.
Enhancing process management and laying down regulatory requirements. To improve the quality of the performance explanation meetings, SZSE has laid down requirements for work before, during and after the meeting. Specifically, before the meeting, listed companies should solicit questions from the public and make good preparations to improve the pertinence of communication. During the meeting, companies should earnestly answer investors’ questions via live streaming, video, voice communication or other forms to respond to investors’ concerns and fully guarantee small and medium investors’ right to know. After the meeting, companies should make timely disclosure and reflect the communication comprehensively and truthfully. In the meantime, SZSE has urged listed companies to disclose their production and operation information truthfully, stating that listed companies should not leak undisclosed important information, release false information or misleading statements, or conduct “newsjacking” in any form, and those who violate such regulations will be dealt with severely.
Improving platform functions and upgrading supporting services. To further improve the convenience of communication between listed companies and investors, SZSE has leveraged the advantages of the authoritative and professional platform “Easy IR” and investor activity, and increased technology input in the platform. At the end of March, SZSE launched the program “Cloud Interview”, to provide free real-time online image-text communication and video playing services for investor relations management related activities such as listed companies’ performance explanation meetings. The program has enriched the interaction channels between listed companies and investors and reduced the communication cost with investors.
With listed companies releasing their annual reports intensively, performance explanation meetings held by listed companies will peak. SZSE supports listed companies in communicating with investors in more dynamic, more diversified and more effective forms, showcasing industries’ development trend and companies’ operation quality and effectiveness objectively, and delivering the voice of high-quality development of listed companies to the market. At the same time, SZSE supports investors in proactively exercising shareholders’ rights, gaining in-depth knowledge of companies’ development status and actively giving advice and suggestions, to enhance their participation and sense of gain. SZSE will continue to pay attention to the effect of the performance explanation meetings, spread excellent cases sector by sector, and advocate best practices. SZSE will strive to make the performance explanation meetings a bridge for companies to transmit their value and for investors to find value, and foster a good atmosphere that respects investors in the whole market.
