Voluntary info release urged
China should encourage listed companies to disclose information voluntarily and enhance punishment if rules for revealing corporate information are violated, said the Shanghai Stock Exchange in a report.
To build up a transparent capital market, China should ensure that listed firms practice good governance and that they should voluntarily disclose information in order to protect the interests of investors.
More attention and stricter regulation should be paid to special treatment, or ST companies, said the report issued on Thursday.
The supervision system should also be improved and there should be increased cooperation between the China Securities Regulatory Commission and the two domestic bourses. The media should also be called on to highlight the regulations and punishment for violation, the report said.
According to the exchange, more than 78 percent of punishment imposed by the Chinese securities watchdog on listed firms from 1996 to 2007 were related to malpractice in information disclosure.
In September this year, the stock market regulator ruled that listed firms must show that there was no evidence of insider trading or market manipulation if their share prices fluctuated beyond 20 percent within 20 trading days before sensitive data was to be disclosed.
Tags: china stock, Shanghai-Stock-Exchange