CHINA: SSE Requires Recommendations on Trading Suspension Guidelines from the Public

Friday November 23 2018

The trading suspension/resumption system for listed companies is a fundamental institutional arrangement for the capital market. The China Securities Regulatory Commission (CSRC) recently released the ‘Guidance on Improving the Trading Suspension/Resumption System for Listed Companies’ (hereinafter referred to as the ‘Opinions’). It defines the basic principles of trading suspension/resumption, shortens the trading suspension period, and intensifies the disclosure requirements to safeguard trading order, stabilize market expectations and fully ensure investors’ trading opportunities. To practice the requirements of the Opinions, the Shenzhen Stock Exchange (SZSE) has drafted the Guidelines for the Trading Suspension/Resumption Business of Listed Companies on Shenzhen Stock Exchange (Exposure Draft) (hereinafter referred to as the ‘Trading Suspension/Resumption Guidelines’) and sought public opinions from the market.

The Trading Suspension/Resumption Guidelines offers key standards to the trading suspension/resumption business of listed companies from such aspects as reducing suspension causes, shortening suspension period, intensifying information disclosure and perfecting suspension/resumption supervision. For example, it cancels the trading suspension caused by restructuring planning not involved with share offering, non-public share offering, outward investment and signing material contracts etc.

The deadline for seeking the public opinions is December 21, 2018. SZSE, according to the market feedback, will further improve the Trading Suspension/Resumption Guidelines to deepen the reform of information disclosure system, perfect the fundamental system for market operation and protect investors’ legitimate rights and interests.

For more information please click on the link above.