Shenzhen Stock Exchange recently held the second training session in Beijing for ChiNext-listed companies to promote compliance and development. A total of 161 board chairmen and senior executives of 83 ChiNext-listed companies located in northern and northeastern regions of China attended the training programme
According to a representative of SZSE, the new delisting rule has markedly heightened regulation over ChiNext-listed companies’ operation. In particular, the new rule provided that an aggregate of 3 public censures within 36 months will result in delisting the company concerned. In other words, irregularities may set a non-conforming issuer on the path of being delisted.
The first public censure has recently been issued to a ChiNext-listed company. According to the SZSE representative, investigation results pointed to related parties’ embezzlement. Even though no serious consequences were caused, the act of embezzlement had violated relevant SZSE rules such as the Listing Rules for Shares Listed on the ChiNext Market, its severity matched Standards for Public Censure of Companies Listed on the ChiNext Market and caused negative social influence. In order to safeguard the market order on the ChiNext and protect investors’ interests, the SZSE seriously handled the case in accordance with rules and regulations. The SZSE representative also emphasized that zero tolerance is enforced with regard to embezzlement or any irregular practice that infringe on shareholders’ interest. Such cases will be thoroughly investigated and subject to punishment once proven guilty. Each and every listed company and its directors, supervisors and senior management shall draw a lesson from the case and prevent law-violating and non-conforming behaviors.
The training programme is one of serial training activities held by the SZSE for board chairmen and senior executives of ChiNext-listed companies. In the next two months, the SZSE plans to organize two more sessions in other regions. The training programme is designed to enhance publicity and education of new delisting rules and revised listing rules, which sets higher standards for corporate behaviours.
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