13 Dec 2016
Shanghai Bourse Issues Information Disclosure Guidelines for Seven Sub-sectors
The Shanghai Stock Exchange (SSE) has issued information disclosure guidelines for the third batch of listed companies involving the seven sub-sectors of wine, broadcasting and television transmission, environmental protection services, water production and supply, chemicals, air transportation, and agriculture, forestry, animal husbandry and fishery. The guidelines will come into effect on 1 January 2017.
After the implementation, the guidelines for the seven sub-sectors, coupled with the guidelines for 13 sub-sectors already implemented on the SSE as well as the guidelines for the financial sector issued by China Securities Regulatory Commission (CSRC), will make the rule system of the information disclosure guidelines on SSE more complete and comprehensive, covering the vast majority of first- and second-tier industries in Shanghai and over 80% of the market value. Companies make disclosure under the sub-sector information disclosure system by means of periodic reports or ad hoc announcements, providing high-quality business information which is an important basis for investors to judge value and risks of the company, coupled with various regulatory instruments, becoming an important tool for guiding rational investment and curbing speculation in the market.
The first batch of sub-sector industry information disclosure guidelines was issued by SSE in September 2015, on the six sub-sectors of real estate, coal, electricity, automobile and pharmaceuticals manufacturing. The second batch of disclosure guidelines involving the six sub-sectors of oil and gas exploration, iron and steel, photovoltaic, construction, clothing and news was released in November 2015. These sub-sector industries make up the vast majority of Shanghai blue-chips, and include the most important industries in Shanghai.
The third batch of guidelines covers industries of higher tiers. First, the second and third tier sub-sectors, such as wine, air transportation, water production and supply will be included in the industry information disclosure system; second, industries reflecting the new economic force and direction of supply-side structural reform such as environmental protection and broadcasting will also be included in the priority list of sub-sector information disclosure. Hence, not only covering a vast number of companies, of substantial market value, the industry information disclosure system also includes, at the market level, key industries, emerging industries, the second- and third- tier industries as well as the much-hyped industrial hotspots.
The launch of a comprehensive and multi-layered Shanghai sub-sector industry information disclosure will enhance the relevance and effectiveness of information disclosure of listed companies, curbing speculation and cutting market risks.