The training conference for the first batch of companies listed on the Growth Enterprise Board (GEB), co-sponsored by the Listed Company Supervision Department of the China Securities Regulatory Commission (CSRC), the Shenzhen Stock Exchange (SZSE) and relevant CSRC regional offices, was recently held in Beijing. The conference aims to help listed companies’ senior management, controlling shareholders and actual controllers understand relevant regulatory laws and regulations and their responsibilities and duties in a bid to improve the standardized operation of GEB-listed companies and the communication between the regulatory authority and the listed companies. Attending the meeting were officials from the CSRC Listed Company Supervision Department, the SZSE and relevant CSRC regional offices. About 220 attendees include board chairmen, general managers, secretaries to directorate, controlling shareholders, actual controllers and sponsor representatives of the first batch of 28 companies listed on the GEB and staff of the regulatory authority.
Head of the CSRC Listed Company Supervision Department pointed out at the meeting that in the backdrop of the rise of China’s capital market with its overall role fulfilled better and its capability to serve the real economy improved thanks to the sustainable national economic development, the introduction of the GEB market meets the need of China’s strategic development of building an innovative nation. The task confronting both the regulator and the GEB companies is to build a harmonious, healthy and sustainable GEB market. Specifically speaking, first, provide a real listed company for investors. Second, provide a sustainable listed company for investors. Third, work together to promote and improve the corporate governance. Fourth, boost the good-faith culture construction. Fifth, jointly create a harmonious development environment featured by mutual communication, trust and supervision.
The official also introduced the concepts in listed computer supervision: first, loosen control. To adapt to the market change, the regulatory authority, while pushing the market reform, will gradually loosen control and reduce unnecessary administrative examination to give full play to the market rule of corporate self-governing in a bid to expand the enterprises’ autonomy right and room for innovative development. Second, strengthen supervision. The regulatory authority will continuously improve and strengthen its supervision over market participants while loosening control. Based on the experience in supervision practices in the past several years, the violations of the listed companies may be classified into five categories, that is violation due to ignorance, unconscious violation, passive violation and malicious violation. The regulatory authority will take different supervisory measures to deal with the above five kinds of violations. Third, improve services. The relations between the listed companies and the regulator shall not be a simple and absolute cat and mouse game, but be equal and interactive. The regulatory authority and the listed companies, although being different market participants, share the same goal of promoting the standardized operation and sustainable development of listed companies. Fourth, advance with the times. As China’s capital market is still at its early stage, its internal mechanism and exterior climate undergo continuous changes. The regulator shall advance with the times to adjust its supervision concepts, measures and means in accordance with the changes in situation and find out a supervision system suitable for China’s national conditions by focusing its attention on the adaptability, suitability, pertinence and effectiveness of supervision. Meanwhile, the supervision orientation and goal shall remain unchanged, namely sticking to the market-oriented development and giving full play to the basic function of capital market to shape the culture and concept of standardized operation, compliance and rewarding shareholders and realize the harmonious, healthy and scientific development of capital market and listed companies.
The official also encouraged the GEB companies to become more professional, specialized, better and stronger through capital market and make independent innovation to gradually improve their core competitiveness with an aim to consolidate and upgrade industry through the platform of capital market. Sponsors and relevant intermediaries are expected to fulfill their responsibilities earnestly to caution all parties concerned against false information disclosure, stock price and insider dealing manipulation, impairment of listed companies’ interests, abuse of raised funds and blind expansion.
An official from the SZSE listed four musts for GEB-listed companies. The first is to keep good faith in mind to treat investors with kindness. The second is to take good advantage of the raised funds to spare no effort to do major business. The third is to improve the quality of information disclosure to prohibit insider dealing and market manipulation. The fourth is to do a better job in corporate governance and standardized operation.
At the meeting, the Listed Company Supervision Department, Administrative Sanction Committee, Legal Affairs Department and Accounting Department of the CSRC and the SZSE respectively introduced and explained to the company participants the GEB company supervision system, the violation cases of listed companies and controlling shareholders, the legal system for supervision over listed companies, the GEB company financial information disclosure and the key points in information disclosure and standardized operation of GEB companies.
The “Letters of Commitment to Standardized Operation” and the “Letters of Commitment to Good Faith” were signed at the meeting by the chairmen of directorate and general managers of the first batch of GEB companies and their controlling shareholders and actual controllers, respectively. Through the communication with the listed companies, the CSRC Listed Company Supervision Department, the SZSE and relevant CSRC regional offices proposed specific supervision requirements to the listed companies and solicited opinions and suggestions on supervision from them.
Source: China Securities Regulatory Commission (www.csrc.gov.cn)