The FINANCIAL -- Recently, SZSE finished the 2017 annual information disclosure assessment of the listed companies on the Main Board, SME Board and ChiNext Board. The assessment results show that the overall information disclosure quality of SZSE-listed companies is good. In the assessment, 84.06% of the companies get A and B, and 15.94% of the companies get C and D.
This assessment is based on the Measures on the Appraisal of Information Disclosure of Listed Companies (Revised in 2017) (hereinafter as the “Appraisal Measures”), and the truthfulness, accuracy, completeness, timeliness and fairness of the information disclosure contents, taking into account such factors as administrative penalties, disciplinary actions and regulatory measures imposed during the assessment period, information disclosure management and coordination, and investor protection work. The assessment subjects are mainly listed companies, but also cover controlling shareholders, actual controllers, directors, supervisors, senior managers, and the main staff responsible for information disclosure, according to SZSE.
In 2017, SZSE continued to strengthen the frontline regulatory duties and took all kinds of violations severely. During the information disclosure assessment period, SZSE issued 105 disciplinary decisions and 452 regulatory letters, with year-on-year growth of 17%. SZSE has put forward higher requirements for the quality and efficiency of information disclosure of listed companies according to the Appraisal Measures, added more dimensions to the assessment requirements, and enhanced supervision of extreme events such as important parameter entry errors and operational risks of company announcements. In addition, pursuant to the Appraisal Measures, a total of 132 companies newly listed in 2017 couldn’t get A because their assessment period is less than 12 months. There were 375 SZSE-listed companies with an assessment result of A, accounting for 17.95% of all SZSE-listed companies, slightly down by 2.22% from the previous year. The proportion of companies with C and D increased from 14.45% to 15.94%.
As are shown from the results of information disclosure assessment in recent years, a number of SZSE-listed companies have done a good job in information disclosure with high level of operational standards, setting a good example for others. For instance, on the Main Board, China Merchants Shekou has been rated with A for 15 consecutive years, Yunnan Baiyao has been rated with A for 12 consecutive years, and Guoyuan Securities for 11 consecutive years; on the SME Board, Suning.com has been rated with A for 13 consecutive years, and Bank of Ningbo, Zhejiang NHU and 3 other companies have been rated with A for 10 consecutive years; Hanwei (formerly known as Hanwei Electronics), Lanxum, and Inovance Technology on the ChiNext Board have been rated with A for 8 consecutive years.
An officer from SZSE says that sufficient and effective information disclosure is the premise of the healthy development of the capital market, and regulation of information disclosure is the basis for the effective operation of the capital market. In recent years, in accordance with the unified arrangements of the China Securities Regulatory Commission, SZSE has enhanced its comprehensive and stringent law-based supervision, and built the first line of defense for capital market supervision. Through efforts to comprehensively implement industry supervision, deepen classified supervision, and optimize information disclosure assessment mechanisms, SZSE aims at improving the quality of information disclosure and standard operation of listed companies, and ensuring the smooth operation of the multi-tiered Capital Market of SZSE. Next, SZSE will continue to perfect the information disclosure supervision system, urge listed companies to improve the effectiveness and pertinence of information disclosure, and effectively protect the legitimate rights and interests of investors. On the one hand, SZSE will further promote proactive and preventive supervision, and disqualify companies with disclosure results of D in 2017 from conducting Express Information Disclosure to fully maintain market order; on the other hand, SZSE will strengthen the training of information disclosure for shareholders, directors, supervisors, senior managers and other obligators in listed companies, in order to enhance their awareness and responsibility of information disclosure, and guide them to fulfill the duty of good faith and other obligations.