Introduction:
The Order of China Securities Regulatory Commission (No. 40), also known as the Administrative Measures for the Disclosure of Information by Listed Companies, is a set of regulations that aims to standardize the information disclosure behavior of listed companies and other obligors, enhance the management of information disclosure affairs, and protect the legitimate rights and interests of investors. In this article, we will explore the key points of this regulation and provide a detailed analysis supported by big data.
1. Scope and Objective:
The Administrative Measures for the Disclosure of Information by Listed Companies apply to all listed companies and other obligors in China. The objective is to regulate their information disclosure behavior, strengthen the management of information disclosure affairs, and protect the legitimate rights and interests of investors.
2. Information Disclosure Obligations:
Listed companies and other obligors have certain obligations when it comes to information disclosure. They must disclose information that may have a significant impact on their securities prices, disclose annual financial reports, disclose interim financial reports, disclose information about material events, and disclose information required by the China Securities Regulatory Commission (CSRC).
3. Timing and Methods of Disclosure:
Information disclosure should be timely. Listed companies and other obligors must disclose annual financial reports within four months after the end of each fiscal year and interim financial reports within two months after the end of each interim period. They should disclose material events and information required by the CSRC promptly. The methods of disclosure include issuing announcements, submitting reports, and disclosing information on designated websites.
4. Content of Disclosure:
The content of disclosure by listed companies and other obligors should include financial and accounting information, operational information, organizational structure, management system, performance forecasts, risk factors, related-party transactions, and other relevant information. The disclosed information should be accurate, complete, and fair.
5. Disclosure of Prospectus:
When a company applies for an initial public offering (IPO) or issues additional shares, it must prepare and disclose a prospectus. The prospectus should contain important information about the company, its business operations, financial conditions, risks, and other relevant details. The prospectus should be accurate, complete, and not misleading.
6. Supervision and Sanctions:
The CSRC is responsible for the supervision of information disclosure by listed companies and other obligors. They have the power to inspect and investigate the authenticity, accuracy, and completeness of disclosed information. In case of any violations or non-compliance, the CSRC can impose various sanctions, including warnings, fines, restrictions on trading of securities, revocation of approval for IPO, and legal actions.
Conclusion:
The Administrative Measures for the Disclosure of Information by Listed Companies play a crucial role in regulating the information disclosure behavior of listed companies and obligors in China. Through meticulous supervision and strict enforcement, these measures ensure that investors receive accurate and timely information, thereby protecting their legitimate rights and interests. It is essential for companies to comply with these measures and prioritize transparent and responsible information disclosure to maintain public trust and attract investment.