China – SZSE Listed Company Violations

China – SZSE Listed Company Violations

On 18 August 2019, SZSE updated listed company violations from this year.

  • Since the start of the year, SZSE has made 62 disciplinary decisions on information disclosure/standard operation of listed companies, compared to 37 the previous year.
  • Among them, 22 cases were publicly condemned, 52 were notified, and 8 persons responsible for the nature of the violations were publicly identified as unsuitable.

Focus Points

  • SZSE will enhance the accuracy, transparency and credibility of disciplinary actions.
  • Severely crack down on the capital occupation of controlling shareholders and related parties and violation of guarantees by listed companies, despite increasing complexity.
  • Also, tackle any non-compliance with performance compensation commitments.
  • Act against violations of information disclosure on major issues, including accuracy.
  • Tackle irregularities in periodic reports such as financial fraud and accounting errors.
  • Ensure intermediaries are diligently looking for illegal, non-compliant behaviors.
  • Act upon irregularities in internal operations that are not standardized.