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Shenzhen Stock Exchange (SZSE) promulgated “Guidance on operation procedures with listed companies No.10---substantial asset restructure and document submission” and “Information Disclosure Memorandum No.13—substantial asset restructure” to regulate the suspension and listing, information disclosure and management processes such as agreements, financial reports, auditing reports and etc.
The new rules optimized information disclosure and managing processes by stipulating the principal of substantial asset restructure suspension, resume and document submission.
The Guidance ruled that listed companies should guarantee the authenticity, feasibility and maneuverability of the restructure program of the company and should not apply for trading suspension with the reason of asset restructure and infringe investors’ right and interest by releasing false information.
Listed companies should submit the suspension applications within 5 trading days and could extend the term if needed and the aggregate suspension period should not be longer than 30 trading days. Application and progress reports are required for suspension extension and trading will be resumed compulsorily for no application and disapproval.
Companies forced to resume trading should make announcements on the problems in a unified format and promise to have no asset restructure plan within three months.
To prevent important information leakage, it is ruled that SZSE should not accept any consultancy on information involving asset restructure and any applications from listed companies during the processing period. Such operations can only be accepted during 3:30pm to 4:30 pm after closing.
The Memorandum No. 13 prescribed that companies should deliver materials in accordance with stated format and content.
Listed companies are also ordered to submit self-inspect reports and name lists of involved principals to curb any illegitimate trading and to provide SZSE with evidence on non-involvement of those principals and their relatives during the abnormal fluctuation of the stock price.
Principals from SZSE expressed the bourse’s intention to cooperate with related parties for implementation of the rule to specify the relevant procedures, enhance information disclosure and improve the efficiency of asset restructure.
