The Shenzhen Stock Exchange ("SZSE") has recently formulated and issued the Detailed Rules on the Hearing Procedures for Self-discipline Regulation and the Detailed Rules of the Appeal Review Committee (Revised in 2018) (collectively the "Detailed Rules"), both of which take effect immediately from the issue date.
The Detailed Rules explicitly state that, the scope of hearing matters is widened to comprise hearings on disciplinary punishment and hearings on terminated IPOs, compared to mere hearings on disciplinary punishment in the past. In particular, hearings on disciplinary punishment will be held to decide on relatively heavy disciplinary sanctions, including publicly announcing the unsuitability of certain individuals to act as directors, supervisors and senior executives of listed companies, all forms of public denouncement, and canceling the membership or qualifications of other transaction participants. Hearings on terminated IPOs are those held to review the proposed compulsory termination of the listing of shares. In the meantime, such review will cover the decisions of publicly announcing the unsuitability of certain individuals to act as directors, supervisors and senior executives and all forms of public condemnation, to get aligned with the scope of hearing matters. As to implementing procedures, the Detailed Rules stress the link between in-process hearings and follow-up regulatory decisions, adjust the previous unified requirement that "enforcement will not be suspended during the review period", and detail the specific time limits for the holding of certain conferences, concerned parties' withdrawal of their applications, and the submission of applications for extension.