Shanghai Stock Exchange (SSE) recently revised the guides to listed companies on format of announcements and business procedures. The revision incorporates feedback and suggestions collected during extensive visits to listed companies, significantly simplifying filing documents, streamlining announcement content, and improving the user-friendliness of announcement formats. According to estimates, the number of required reference documents for listed companies will decrease by more than 50% following the rule revision.
Announcement formats and filing documents are disclosure references and supporting materials for listed companies. As listed companies pursue higher level of operational compliance, redundancy and complexity in existing formats and filing documents have become acute issues that increase cost and burden of disclosure. First, some announcement formats require information that duplicates the filing documents, undermining their effectiveness; second, certain filing documents are weakly related to the disclosed matters and are no longer necessary to submit; third, some announcement formats are overly detailed, making it hardly understandable for investors. In light of this, the SSE conducted a comprehensive review of the current announcement format guides, streamlining and optimizing both the formats and the types and quantity of filing documents. This allows listed companies to prepare announcements more easily and enables investors to access announcements more efficiently.
Going forward, under the guidance of China Securities Regulatory Commission, the SSE will continue to optimize disclosure rules, enhancing the quality of disclosures by listed companies and improving investor-friendliness.
