Thursday June 7 2018

News Source: Global Exchanges

Focus: Listing Rules

Type: General




On 4th June 2018, the Shenzhen Stock Exchange (SZSE) published its updated Bond Listing Agreement which regulates Corporate Bond Listings on the Exchange.

The agreement puts in place the following obligations:

  • Article 58 of the Regulations stipulates that exchanges should enter into listing agreements with companies that apply for listing of securities and specify the rights and obligations of both parties in the agreement, as well as on-site inspections. , penalties for breach of contract, etc.
  • Article 65 stipulates that the exchange shall supervise other entities issued or traded on the Exchange in accordance with relevant regulations. In order for this to be achieved SZSE is entitled to take Administrative Measures to enhance supervision.

SZSE has noted that these procedures are intended to achieve the following:

  • Strengthen the self-regulatory functions of exchanges. The procedures have enriched the SZSE ability to perform on-site inspections, received punitive liquidated damages, issued regulatory advice, and other regulatory measures, supplementing the Shenzhen Stock Exchange’s important functions for the suspension, resumption, resumption, or termination of trading decisions.
  • Improve information disclosure and regulatory operations. It clarifies that issuers and managers should be honest and trustworthy, regulate operations, perform repayment of principal and interest, distribute income, use the proceeds raised according to the contract, manage credit risk, disclose information and other related obligations, and ensure the content of information disclosure. True, accurate, complete, timely and fair.
  • The regulations reflect the purpose of Corporate Bond Listing Contract and clarifies the role of the SZSE in this.
  • The regulations further enhance fairness and transparency of self-regulation. The new version of the agreement stipulates that the Shenzhen Stock Exchange shall establish an internal self-regulatory remedy system to protect the issuer and the administrator’s right to apply for hearings and review of the major self-regulatory decisions related to the Shenzhen Stock Exchange.

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