English

By Xie Fang

The Shenzhen Stock Exchange (SZSE), one of China's two stock exchanges, released a report on listed-companies' performance in abidance by rules on information disclosure recently, the China Securities Journal reported on Monday.

The SZSE said in the report that listed companies including those listed on the main board, the small and medium enterprises (SME) board as well as the second board performed relatively well in abidnce of rules on information disclosure last year.

According to the report, 84.06 percent of all Shenzhen-listed companies were rated A or B for their compliance with the rules on information disclosure, while 15.94 percent were rated C or D.

More specifically, there were 375 A-rated companies in total last year, which accounted for 17.95 percent of all Shenzhen-listed companies, a decrease of 2.2 percent from a year earlier. On the other hand, the share of the companies rated C or D rose from 14.45 percent in 2016 to 15.94 percent in 2017.

The report also highlighted a group of companies which serve as role models in abidance by the rules on information disclosure. The China Merchants Shekou Holdings has, for example, been rated A for 15 consecutive years.

What's more, Yunnan Baiyao Group, a well-known herbal medicine producer and Suning.com, a popular online appliance retailer, have also been retaining the A-rating for 12 and 13 straight years respectively.

An official from the SZSE noted that a healthy development of the capital market requires sufficient and effective information disclosure while a strong oversight over the information disclosure guarantees an efficient operation of the capital market.

He also disclosed that the SZSE would improve its system for preventing information disclosure by scrutinizing the information to be disclosed by the D-rated companies beforehand and enhancing the training of shareholders and senior executives of listed companies who are responsible for disclosing information.