The China Securities Regulatory Commission ("CSRC") has recently issued the Decision on Revising the Provisions on Strengthening the Regulation of Listed Securities Companies (the "Decision"), with effect from the date of issuance.
The main revisions made under the Decision to the Provisions on Strengthening the Regulation of Listed Securities Companies are as follows: the first is to cancel the "additional" requirement for the monthly disclosure of business data and improve the requirement for the disclosure of classification results of securities companies. For example, the original Article 12 is renumbered as Article 11, reading "a listed securities company shall disclose its classification results given by the regulatory department for the last three years in its annual report." The second is to connect with the new Securities Law and the Provisions on the Equity Management of Securities Companies to improve the expressions related to administrative licensing matters. The third is to reinforce the administrative requirements for insider information of securities companies. For example, the original Article 14 is renumbered as Article 13 and a paragraph is added to read "6. establishing an effective internal control system and cooperating in the management relating to inside information of other listed companies known in the practicing process." The fourth is to connect with other rules and adjust expressions.