Shenzhen Stock Exchange to intensify regulation on sponsoring business

Shenzhen Stock Exchange to intensify regulation on sponsoring business

28/01/10

In order to give the full play to the role of sponsoring institutions in supervising and guiding listed companies, strengthen the communication and connection between the Stock Exchange and sponsoring institutions, improve the sponsoring quality of sponsoring institutions, practically enhance the level of regulated operations of listed companies and information disclosure quality, the SZSE hereby releases the “Notice on Starting Using Sponsoring Business Special Column and Establishment of Sponsoring Business Representative System”(hereinafter referred to as “Notice”), bringing forward the “Sponsoring Business Special Column” and implementing the sponsoring business representative system.

The buildup of the sponsoring business special column will put up the speedy channel for information exchange and business handling between the SZSE and sponsoring institutions, simplifying the relevant business links in respect of continuous supervision, significantly enhancing the work efficiency.

At the same time, in order to further strengthen the communications between the SZSE and sponsoring institutions, the SZSE will build the sponsoring business representative system. The Notice provides that the post of sponsoring business representative shall be held by the person in charge of sponsoring business in a sponsoring institution, and a sponsoring institution may designate 1-3 persons as sponsoring business liaison. The Notice also sets out the main duties for sponsoring business representative and sponsoring business liaison.

The SZSE always has attached the high importance to the sponsoring system, successively promulgating the relevant regulations and rules including the “Guidelines for Sponsoring Work on SME Board”, “Measures for Evaluation on Sponsoring Work for Listed Companies on SME Board”. The SZSE person in charge of sponsoring work expressed that the launching of sponsoring business platform and business sponsoring representative will build up the platform for the communication between the SZSE and sponsoring institutions, further conducive to bringing into play the role of sponsoring institutions, take the further step to enhance the level of regulated operation of listed companies and information disclosure quality in order to give important security to continuous and healthy development of listed companies.