The Shenzhen Stock Exchange (SZSE) held the 3rd seminar on acquisitions and restructurings of listed companies recently in a bid to promote the standardized operation of acquisitions and restructurings in listed companies.
Participants discussed issues including practices and innovation of acquisitions and restructurings, industry policy and corporate acquisitions, financial issues involved in acquisitions and restructurings, law practices, risk and control in overseas investment and acquisitions, and acquisition loans.
In respect of the current market trend, policy orientation and internal motivation of enterprises, all participants reached a consensus that 2009 will be an important year, during which listed companies will optimize resource deployment by means of acquisitions and restructurings to achieve industry integration.
It is noted the SZSE will boost acquisitions and restructurings of listed companies from 6 aspects.
Firstly, Market mechanism will be fully exerted to push forward the market-oriented process of acquisitions and restructurings. Game mechanism between large shareholders and middle and small shareholders will be established so that non-associated shareholders can have a say and acquisitions and restructurings being more fair and reasonable.
Secondly, the supervision of intermediaries will be strengthened so that restructuring can be restrained by market mechanism.
Meanwhile, policies will be improved to advance the standardization of acquisitions and restructurings, such as optimizing the suspension policy of restructurings, giving consideration to both efficiency and fairness, enhancing the supervision of controlling shareholders, de facto controllers and senior management in listed companies, strengthening the supervision of unusual movements in share prices to avoid and crack down inside transactions.
In addition, pre-commitment approach regulation will be strengthened to enhance the hard constraint imposed on acquisitions and restructurings.
Furthermore, beginning with the innovation of system and methodology, new methods of acquisitions and restructurings will be mulled to raise the efficiency and success rate of restructurings.
The last aspect is about the information disclosure. Investors’ rights to know will be fully protected. Pursuant to the demand of acquisitions and restructurings, corresponding disclosure regulations will be improved to raise market efficiency.
It is learnt 43 major assets restructurings are disclosed by Shenzhen market in 2008, with a turnover of 74.5 billion yuan.