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Yesterday the Shenzhen Stock Exchange issued the Evaluation Measures on the Sponsoring of Companies listed on the SME Board (hereinafter referred to as the Measures), effective upon promulgation.
The Measures prescribe that the Shenzhen bourse will conduct comprehensive appraisal of the work done by relevant sponsors and sponsor representatives based on their performance related to issuance, listing and sustained supervision, their cooperation with the exchange, the punishments, disciplinary or supervisory measures received as a result of their sponsoring work, the sustainable development capability, information disclosure quality and standard operation level of the sponsored companies. The evaluation will be carried out on a scale of four grades. And those who sponsor two and more SMEs at the same time will be rated by sponsor representatives and listed companies respectively, with the evaluation results averaged for the final ratings.
According to insiders, the bourse will carry out the first round of evaluations of sponsors and sponsor representatives for listed SMEs at the end of the 2007 annual reporting period. Relevant business divisions under the exchange have laid out detailed evaluation indicators and specific measures for those that may fail.
Since the founding of the SME board, the Shenzhen stock exchange has always attached great importance to the implementation of the sponsoring regulations and issued a series of guidelines and rules with a view to boosting the standard operation and information disclosure level of firms listed on the SME board. In addition, the bourse will further set out unified standards and requirements for sponsors and sponsor representatives on sustained supervision regarding monitoring and management of raised proceeds, on-spot investigation, special audit, and provision of sponsor’s opinions, in a hope to strengthen supervision and highlight the role of sponsors and sponsor representatives.
