Meeting adopts measures to develop well-regulated, resilient capital markets
China will work to further improve the information transparency and disclosure of listed companies, improve their corporate governance, and strengthen the mechanism of diverse exit options for these companies in a bid to sustain the steady and healthy growth of capital markets and better protect investors.
A host of new steps in this regard were adopted at the State Council's executive meeting chaired by Premier Li Keqiang on Wednesday.
"Improving the quality of listed firms is crucial for the sound development of the securities market," Li said.
Measures were adopted at the meeting to develop well-regulated, transparent, open, vibrant and resilient capital markets.
The meeting urged refining the institutions and rules for the corporate governance of listed companies. Shareholders with a controlling stake, actual controllers of companies, directors, supervisors and senior management must fulfill their statutory duties and responsibilities.
The mechanism for institutional investors to participate in corporate governance will be enhanced, and guidelines on internal controls will be widely applied. Information transparency and disclosure will be improved.
Greater efforts will be made to enhance the performance of listed companies. Well-run firms will be supported in going public. Institutions for asset restructuring, acquisition and listing will be developed and those for the refinancing and bond issuance of listed companies will be improved.
More eligible foreign investors will be allowed to make strategic investments in listed companies. The mechanism of diverse exit options for listed firms will be strengthened by refining standards, simplifying procedures and unclogging channels. Any circumvention of delisting will be strictly dealt with.
Interagency regulation and supervision will be stepped up. Issues relating to share-pledging risks, misappropriation of funds and guarantees that contravene regulations must be properly resolved. Heavier punishments will be imposed on any violation of laws and regulations, including market manipulation and insider trading.
Recent years have seen the robust and steady growth of China's capital market, with a visible rise in both the quality and quantity of listed companies. Figures from the China Securities Regulatory Commission show that by September, there were more than 4,000 publicly traded companies on the Chinese mainland, with a total market capitalization of over 79 trillion yuan ($11.6 trillion).
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