Recently, SZSE completed the 2019 annual appraisal of information disclosure of listed companies and announced the results. Among the 2,196 listed companies on SZSE, 387 companies were graded A (17.62%), 1,400 companies B (63.75%), 314 companies C (14.30%), and 95 companies D (4.33%). In recent years, there are 178 companies graded as A in the last three consecutive years (8.58%), 129 companies in the last four consecutive years (6.68%), and 92 companies in the last five consecutive years (5.09%). A group of excellent companies featuring high quality information disclosure, good integrity in standardized operation, and strong sense of active services is emerging, which has set an example for all SZSE-listed companies. The 2019 appraisal results of listed companies show that the proportion of grade-A and grade-D companies is higher than that in previous years, indicating the prominent problem of non-standard information disclosure in some listed companies despite the steady improvement in the overall quality of information disclosure.

On the same day, SZSE also released the newly revised Measures on the Appraisal of Information Disclosure of Listed Companies (hereinafter as the “Appraisal Measures”). According to the requirements of the new Securities Law, the Appraisal Measures further improves the transparency and effectiveness of the appraisal and evaluation mechanism from the perspectives of information disclosure appraisal method, appraisal contents and the use of results by putting the improvement of information disclosure quality as core and the deepening of classified regulation as orientation while taking consideration of the performance of the existing system and the new situation and changes in the market.

Adjusting the appraisal method to reflect the regulation orientation. The mode of “awarding-and-deducting” is adopted in the appraisal method. That is to say, points may be awarded or deducted on the basis of unified appraisal benchmark scores. The appraisal results of listed companies shall be based on this, in combination with the negative list indicators. The “awarding items” focus on whether a company’s information disclosure is standardized, the maintenance of investor relations, the disclosure of social responsibility fulfillment and the cooperation with SZSE. The “deducting items” focus on major negative matters and the self-discipline measures or disciplinary punishments imposed on listed companies and related parties. With a clearer and more visible appraisal method, and a procedure holding greater openness and transparency, it is beneficial to sending a clear signal to listed companies to urge them to make constant improvement in the quality of information disclosure and standardize the level of operation.

Completing the appraisal content and focusing on market concerns. The Appraisal Measures strengthens the appraisal on hot and key issues with a high degree of market concert based on the regulation practices. First, appraisal on the effectiveness of disclosure is added, which focuses on whether the disclosure content is investor needs-oriented, easy to understand, or actively based on policies and developments of the industry. Second, voluntary disclosure will be assessed. The appraisal focuses on whether there are selective disclosure or misleading information to investors, and adequate warnings about uncertainties and risks in the listed companies, in a bid to guide them to increase the usefulness of information disclosure to help investors make right value judgment and investment decisions. Third, appraisal contents such as cash dividends, share repurchases, and disclosure of corporate social responsibility reports are added to urge companies to strengthen management in investor relations, enhance the protection of investors’ rights and interests, and earnestly fulfill social responsibilities.

Expanding the use of appraisal and increasing support for the excellent. In order to further motivate listed companies to better disclose information, build a favorable market environment, and create an atmosphere of pioneering and striving for excellence, the Appraisal Measures clarifies supportive measures for excellent companies in information disclosure. For companies graded as A, SZSE shall provide more convenient services in respect of equity, bond financing and other businesses in accordance with laws and regulations within the scope of its duties undertaken; provide targeted training at the request of listed companies; invite executives of such companies to give training lectures to promote standardized operation experience to market players; and give priority to recommending the executives of such companies as members of relevant committees, etc.

During the revision of the Appraisal Measures, SZSE solicited opinions from listed companies in forms of on-site discussions and questionnaires. As generally recognized by the listed companies, the revised Appraisal Measures features more reasonable appraisal content, more improved appraisal mechanism and more comprehensive quality of information disclosure the listed companies can reflect.

The relevant person in charge of SZSE said that the implementation of the new Securities Law and the registration-based IPO system on the ChiNext Board underscores the core role of information disclosure. Information disclosure entities such as listed companies and the “key few” should further raise their awareness, earnestly fulfill their obligations to disclose information, make solid efforts in information disclosure, and continuously improve the quality of information disclosure. SZSE will make sustained efforts to meet the requirements in the speeches delivered by Vice Premier Liu He and CSRC Chairman Yi Huiman at the listing ceremony of the first group of enterprises under the reform of the ChiNext Board and the pilot project of the Registration-based IPO system, adhere to the regulatory concept of “taking information disclosure as the core”, and give full play to the positive orientation of information disclosure appraisal. We will implement classified policies and upgrade services to help listed companies improve the quality of information disclosure and standardized operation and strive to cultivate a group of listed companies that meet the requirements for high-quality development.