Shenzhen Stock Exchange formally releases listing rules for the new market

Shenzhen Stock Exchange formally releases listing rules for the new market

With the approval of CSRC, Shenzhen Stock Exchange formally released the Listing Rules for the New Market of Shenzhen Stock Exchange (“Listing Rules”) on 5 June, which is to be effective from 1 July,2009.

Shenzhen Stock Exchange sought for opinions for the draft of Listing Rules from 8 May to 22 May, and totally received 153 feedback mails. It also held 2 meetings on 10, May and 11, May to solicit opinions on the draft of Listing Rules with the public.

In general, the public highly appraised the draft of Listing Rules. Meanwhile, they also gave some specific suggestions and opinions mainly related to corporate governance, information disclosure, restricted shares, rules for resume of listing, responsibilities of intermediary institutions. Shenzhen Stock Exchange finally generalized 135 opinions with 9 classifications after sorting.

After deliberated over all the feedback for the draft of the Listing Rules, Shenzhen Stock Exchange made related revisions in the formal Listing Rules mainly as follows:

Firstly, it added 3 provisions, which included that listed companies shall provide safeguard provisions for independent directors, the restrictions to accounting firms shall be strengthened, and listed companies shall intensify information disclosure regarding their key technology.

Secondly, it revised 7 provisions, which included that directors, supervisors and senior management shall assure timely and fair information disclosure, insiders shall not suggest others to buy related securities, directors, supervisors and senior management shall make declaration regarding direct or indirect holding of their companies’ shares, directors, supervisors and senior management shall notify the holding of their companies’ shares and apply for share restriction as they resign, and it also further identified the range of external investment.

Thirdly, it adjusted some words so as to ensure the expression of the Listing Rules to be more accurate.

As for those suggestions which seemed reasonable but have not been reflected in the formal Listing Rules this time, Shenzhen Stock Exchange promised to consider adopting those in appropriate time under appropriate market condition.

As for those suggestions which were not applicable for the Listing Rules, Shenzhen Stock Exchange would transfer those opinions to related parties.