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Recently, Shenzhen Stock Exchange (SZSE) developed and released the "Memorandum of Media Conference on Major Assets Restructuring", clearly setting forth the circumstance, method and information disclosure of media conferences need holding when a listed company reveals a scheme for major assets restructuring. This is a move taken to fully implement China Securities Regulatory Commission's (CSRC's) regulatory idea of "legal, strict and comprehensive regulation", improve the efficiency and pertinence of major assets restructuring information disclosure, and fully protect investors' right to know and participate.
In recent years, as the merger and acquisition business has been active in the capital market, major assets restructuring has become a key approach for helping listing companies to excel and grow strong and facilitating industrial structure upgrade. However, in the market there have also emerged disputed acts chasing system arbitrage, such as "speculative restructuring", "bamboozling restructuring" and "circumvention back door", seriously impairing the interests of listed companies and investors. The Memorandum clearly says that when a listed company launches a scheme for major assets restructuring that is in compliance with Article 13 of Management Measures on Listing Companies' Major Assets Restructuring (called "Restructuring Listing" for short) or its acts of major assets restructuring are suspected to circumvent the regulatory requirements on Restructuring Listing, the listed company should hold a media conference where all transaction participating parties and relevant intermediary agencies detail the scheme, respond to market attention and questions, and fully accept market supervision. Relevant principal from SZSE explains that the said move will further increase transaction parties and intermediaries' awareness of responsibility in information disclosure, urge market players to be honest and responsible, and boosts regulated development of the market.
In addition, the Memorandum also sets requirements on the conference time, participants, and content in need of explanation and information disclosure and it is implemented from the day of release onward.
