To implement the requirements stated in the CSRC-amended principles on the content and format of periodic reports and further normalize matters on the disclosure of SZSE-listed companies' periodic reports, Shenzhen Stock Exchange (SZSE) has recently revised the Memoranda on Matters Regarding Periodic Reports Disclosure. This will enhance the efficiency of information disclosure related to periodic reports.
A principal from SZSE explained that the overall principle of the revision is centered on information disclosure, improving and elaborating disclosure requirements while strengthening disclosure supervision and restraint. During the revision process, specifics on the periodic reports disclosure of the main board, the SME board and the ChiNext board were improved according to their own features. Particulars include the following three aspects:
First, new requirements on periodic reports disclosure are defined. In accordance with CSRC's revision spirit on periodic reports, provisions on social responsibility disclosure, such as poverty alleviation and environmental information, are detailed. Requirements on the social responsibility of precise poverty alleviation are defined and the concept of key pollutant discharging units is specified. Also, the disclosure on goodwill impairment risk is reinforced, with companies being asked to disclose the operating conditions of the basic assets forming goodwill and the influence of goodwill impairment on the operating performances of listed companies.
Second, the connection between implementing industrial information disclosure guidelines and disclosing periodic reports is consolidated. When disclosing periodic reports, listed companies are required to refer to the applicable industrial information disclosure guidelines and disclose industrial information in corresponding parts so as to improve the content pertinence of information disclosure.
Third, the disclosure channel for periodic reports is unified and new disclosure content is added. With regard to the daily frequent asked matters on periodic reports disclosure, SZSE, taking into account the regulatory practice, has defined requirements on disclosure time, including application term for delayed disclosure, information disclosure requirements, early report on failure to disclosure periodic reports in specified term. In addition, the disclosure on delisting risk evaluation of companies violating laws and regulations and coping measures is newly added and the disclosure channel for raised funds usage and external guarantee is specified.
Moreover, the principles of state secret and trade secret disclosure exemption and the concept of "material"/"major" in periodic report principles are defined in the revision. The disclosure requirements on the employment of innovative sales models are also stated.
The SZSE principal also said that SZSE will continue to take into account regulatory practices and board features to constantly improve regulatory efficiency and organize comprehensive training on listed companies' periodic reports disclosure to help them better understand and implement relevant rules and improve information disclosure quality, as well as protect investors' right to know.