The National Association of Financial Market Institutional Investors ("NAFMII") has recently issued the Rules on Information Disclosure for Debt Financing Instruments of Non-financial Enterprises in the Inter-bank Bond Market (the "Rules"), effective from December 18, 2017.
According to the Rules, if an enterprise is subject to any significant event that is likely to affect its debt paying ability, during the validity of a debt financing instrument, it shall disclose such event to the market in a timely manner. The aforesaid significant events shall include but be not limited to fifteen types, such as "drastic changes to the enterprise' name, business philosophy, or business scope". Also, the Rules expressly state that each enterprise shall work out a system, including but not limited to eleven points, such as "making clear what criteria for information disclosure shall be followed by the enterprise", to manage affairs in association with information disclosure. In addition, the Rules note that each enterprise is required to develop procedures for reporting, transmitting, examining and disclosing the significant events. In particular, the director or the person mainly in charge of an enterprise shall immediately report a significant event to the board of directors or other organization with the right to make decisions, after being informed of such event, and urge the person majorly responsible for information disclosure affairs to organize efforts to make public the significant event.