Opinions on Strengthening the Regulation of Listed Companies (for Trial Implementation)
Opinions on Strengthening the Regulation of Listed Companies (for Trial Implementation)
Opinions on Strengthening the Regulation of Listed Companies (for Trial Implementation)
March 15, 2024
All local offices of the China Securities Regulatory Commission, all exchanges, all affiliated units, all associations, and all departments and bureaus within the China Securities Regulatory Commission,
Listed companies are a cornerstone of the national economy, as well as an important micro-foundation for high-quality economic development. Since the State Council issued the Opinions on Further Improving the Quality of Listed Companies (Guo Fa [2020] No.14) in October 2020, listed companies have continuously optimized their structures, enhanced their innovation capabilities, steadily enhanced their returns, and significantly improved their overall appearance. However, illegal activities such as accounting fraud committed by listed companies and majority shareholders' encroachment on the company interests still occur from time to time. Illegal shareholding reductions seriously affect investor confidence. The stability, timeliness and predictability of dividend distribution are relatively insufficient. Listed companies attach little importance to their investment value. And there is still a gap between the quality of listed companies and the requirements for high-quality economic and social development and the expectations of investors. The Opinions are formulated to further enhance the quality and investment value of listed companies.
I. Overall Requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Central Financial Work Conference, closely focus on the goal of vigorously improving the quality of listed companies, insist on strengthening regulation, preventing risks, and promoting high-quality development, promote the high-quality development and higher investment value of listed companies through stricter regulation, and make new contributions to accelerating the construction of a capital market with Chinese characteristics and a financial power, and serving the high-quality development of the economy and society.
--Adhere to putting investors' interests in a more prominent position. Respond to investor concerns in a timely manner and enhance investors' sense of gain throughout the entire process of regulatory rule formulation, regulatory action execution, and market culture cultivation.
--Adhere to being based on the national and market conditions. Follow the general rules of the capital market, be based on the reality of our country, accurately grasp the governance characteristics of listed companies, urge listed companies and their controlling shareholders, actual controllers, directors, and officers to fulfill their responsibilities, and improve the regulatory system for listed companies.
--Adhere to comprehensive and strict regulation. Fulfill the primary regulatory responsibilities and tasks, ensure strict and tough regulation, effectively improve regulatory effectiveness, severely crack down on financial fraud, misappropriation of the interests of listed companies, illegal shareholding reduction, "false market value management" and other illegal and criminal acts, and identify, alert to, disclose, and dispose of risks early.
--Adhere to the system concept. Pay attention to the comprehensive implementation of policies and treatment of both the symptoms and root causes of problems, and adhere to the driving forces of information disclosure and corporate governance. Pay equal attention to the principle of corporate autonomy and the strengthening of regulatory constraints, protect the interests of small and medium-sized investors while protecting the rights of majority shareholders, and insist on improving rules, strengthening regulation, and promoting development, so as to cultivate a good market ecology.
II.
......
March 15, 2024
All local offices of the China Securities Regulatory Commission, all exchanges, all affiliated units, all associations, and all departments and bureaus within the China Securities Regulatory Commission,
Listed companies are a cornerstone of the national economy, as well as an important micro-foundation for high-quality economic development. Since the State Council issued the Opinions on Further Improving the Quality of Listed Companies (Guo Fa [2020] No.14) in October 2020, listed companies have continuously optimized their structures, enhanced their innovation capabilities, steadily enhanced their returns, and significantly improved their overall appearance. However, illegal activities such as accounting fraud committed by listed companies and majority shareholders' encroachment on the company interests still occur from time to time. Illegal shareholding reductions seriously affect investor confidence. The stability, timeliness and predictability of dividend distribution are relatively insufficient. Listed companies attach little importance to their investment value. And there is still a gap between the quality of listed companies and the requirements for high-quality economic and social development and the expectations of investors. The Opinions are formulated to further enhance the quality and investment value of listed companies.
I. Overall Requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Central Financial Work Conference, closely focus on the goal of vigorously improving the quality of listed companies, insist on strengthening regulation, preventing risks, and promoting high-quality development, promote the high-quality development and higher investment value of listed companies through stricter regulation, and make new contributions to accelerating the construction of a capital market with Chinese characteristics and a financial power, and serving the high-quality development of the economy and society.
--Adhere to putting investors' interests in a more prominent position. Respond to investor concerns in a timely manner and enhance investors' sense of gain throughout the entire process of regulatory rule formulation, regulatory action execution, and market culture cultivation.
--Adhere to being based on the national and market conditions. Follow the general rules of the capital market, be based on the reality of our country, accurately grasp the governance characteristics of listed companies, urge listed companies and their controlling shareholders, actual controllers, directors, and officers to fulfill their responsibilities, and improve the regulatory system for listed companies.
--Adhere to comprehensive and strict regulation. Fulfill the primary regulatory responsibilities and tasks, ensure strict and tough regulation, effectively improve regulatory effectiveness, severely crack down on financial fraud, misappropriation of the interests of listed companies, illegal shareholding reduction, "false market value management" and other illegal and criminal acts, and identify, alert to, disclose, and dispose of risks early.
--Adhere to the system concept. Pay attention to the comprehensive implementation of policies and treatment of both the symptoms and root causes of problems, and adhere to the driving forces of information disclosure and corporate governance. Pay equal attention to the principle of corporate autonomy and the strengthening of regulatory constraints, protect the interests of small and medium-sized investors while protecting the rights of majority shareholders, and insist on improving rules, strengthening regulation, and promoting development, so as to cultivate a good market ecology.
II.
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