To strengthen monitor over information disclosure of listed companies and improve quality of information disclosure, the Shenzhen Stock Exchange (SZSE) recently amended and publicized the “Assessment on Information Disclosure of Listed Companies”.
The SZSE has been implementing the Assessment promulgated in May 2001 by letting listed companies know their assessment results timely, making credit records and revealing results to public. The newly publicized Assessment amended objectives to be assessed, assessment durations, grades, standards and supervision measurements. It is ruled that lately listed companies are also to be objective of assessment. To ensure accuracy of assessment, results will be given in the wake of disclosure of annual reports. The Assessment also gave detailed assessment principles. Companies censured or punished by the China Securities Regulatory Commission or the SZSE would be regarded as substandard in information disclosure.
Officials from the SZSE introduced that supervision measurements will be taken for those companies with worse assessment results, and their senior management will be ordered to be in special training, or to change secretary of board with the aim to protect investors’ right.
