The FINANCIAL — Shenzhen Stock Exchange has recently completed the 2014 annual evaluation of information disclosure over companies listed on the main board, SME board and ChiNext board. The evaluation gives a good result and shows overall improvements in information disclosure, with 88.94% companies receiving Grade A or Grade B, including 20.83% companies receiving Grade A, a 2% up against the result of 2013.
In September 2011, SZSE launched a significant innovation to the ways of information disclosure and started the pilot program of Information Disclosure Express Practice, which was afterwards gradually promoted into full force. Currently, all companies have taken part in the Express Practice and over 90% announcements are disclosed thereby. On April 8 2015, the time window for the Express Practice was enlarged by SZSE, adding morning sections (6:00-8:00) and non-trading days. Thanks to a series of system reforms, the main body responsibility consciousness of listed companies has greatly enhanced and the quality and efficiency of information disclosure has substantially improved, according to Shenzhen Stock Exchange.
Moreover, in order to guide listed companies to do well in information disclosure under the system of the Express Practice and prevent business risks, SZSE has actively taken many effective measures on the basis of previous supervisory practice. For example, trainings and follow-up trainings for board secretary qualification, the Information Disclosure Express Practice, compiling and disclosing periodic reports, etc. were regularly organized; and the Announcement Category Manual of Information Disclosure Express Practice was published in December 2014. In order to continue to urge improvements in the quality of information disclosure and promote supervisory openness, SZSE has also selected some inquiry letters and replies concerning listed companies’ 2014 annual reports and made them public on the website of SZSE in May 2015. So far, 90 pieces of inquiry letters and 73 replies made by listed companies have been disclosed. And the number is increasing.
According to the evaluation results of information disclosure for the recent years, some Grade A companies, such as Ping An Bank, Vanke A, Suning Commerce, Hikvision, Originwater and Tgood, showed standardized operation and high quality information disclosure and have played a good demonstration role; whereas some particular companies received Grade D due to reasons like violation of information disclosure rules, misleading statements found in periodic reports, illegal provision of external financial aid, major errors found in accounting treatment, etc. SZSE will urge such companies to actively improve the level of standard operation, consciously perform the duty of information disclosure and maintain a good image of listed companies in a true and transparent way.
With respects to the main board, 480 companies have taken part in the evaluation, among which, 88 companies such as Ping An Bank received Grade A, accounting for 18.33%; 318 companies such as Cau-Tech received Grade B, accounting for 66.25%; 59 companies such as China High-Speed Railway received Grade C, accounting for 12.29%; and 15 companies such as Extra ST Zhongfu received Grade D, accounting for 3.13%.
With respects to the SME board, 732 companies have taken part in the evaluation, among which, 163 companies such as NHU received Grade A, accounting for 22.27%; 497 companies such as Hongda Xingye received Grade B, accounting for 67.89%; 60 companies such as Elec-tech received Grade C, accounting for 8.2%; and 12 companies such as Extra ST CLTG received Grade D, accounting for 1.64%.
With respects to the ChiNext board, 406 companies have taken part in the evaluation, among which, 86 companies such as Tgood received Grade A, accounting for 21.18%; 287 companies such as Ultrapower Software received Grade B, accounting for 70.69%; 28 companies such as Shanghai Bestway received Grade C, accounting for 6.9%; and 5 companies such as Wanfu Biotechnology received Grade D, accounting for 1.23%.
SZSE will further promote regulatory transition, continuously improve the system of Information Disclosure Express Practice, transfer the focus of information disclosure supervision from beforehand prevention to supervision in process and afterwards, and at the same time urge listed companies to seriously and timely perform information disclosure obligations so as to protect investors’ legitimate rights and interests.