Shanghai and Shenzhen Exchanges Revise Listing Rules
ISSUING AUTHORITIES:
Shanghai Stock Exchange, Shenzhen Stock Exchange
DATE OF ISSUANCE:
December 10 , 2021
On December 10, 2021, the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) respectively issued the revised Shanghai Stock Exchange Listing Rules (Draft for Comments) and the revised Shenzhen Stock Exchange Stock Listing Rules (Draft for Comments) (hereinafter collectively referred to as the "Revised Rules") to solicit opinions from the public.
The listing rules have been revised mainly in three aspects, namely, to implement the requirements of superior laws and regulations, to link up with subordinate business rules and to codify in rules the existing consensus in practice.
Specifically, the key points of the Revised Rules include the following:
● The scope of information-disclosure-obligors extends from shareholders to depositary receipt holders;
● It is clarified that directors, supervisors and senior executives shall be responsible for the authenticity, accuracy and completeness of the information disclosed by listed companies;
● A new section on "Controlling Shareholders and Actual Controllers" is added to strengthen their respective obligations;
● The voting rights of shares purchased in violation of regulations shall be restricted and shall not be exercised within 36 months;
● The right of independent directors, shareholders holding more than 1% of voting shares, and other eligible shareholders to solicit voting rights and to make proposals has been regulated;
● Listed companies are prohibited from providing financial assistance to related parties;
● Disclosure of quarterly report performance forecasts shall no longer be mandatory.
The deadline for feedback on the drafts is December 24, 2021.
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