Shanghai Stock Exchange Releases New Business Rules to Crack Down on Market Disruptions
In a recent announcement from the Securities Times, the Shanghai Stock Exchange has officially released nine new business rules in an effort to crack down on market disruptions. The rules, including the “Stock Issuance and Listing Review Rules,” aim to address issues such as “empty zombies” and “black sheep” that have been affecting the market.
According to a statement from the Shanghai Stock Exchange, the new rules are designed to prevent major shareholders from cashing out through deceptive practices such as “fake” restructuring, “three high” mergers and acquisitions, and blind cross-border acquisitions. These practices have been found to disrupt the market order and harm the interests of small and medium-sized investors.
The new rules also require stronger supervision of mergers, acquisitions, and reorganizations in order to reduce the value of “shell” resources. The China Securities Regulatory Commission’s “Opinions on Strict Implementation of the Delisting System” will also play a role in ensuring that companies under risk warnings are closely monitored.
Moving forward, the Shanghai Stock Exchange plans to conduct more refined supervision on major asset reorganizations of “shell” companies, as well as closely monitor companies facing delisting for failing to meet revenue and profit indicators. Additionally, the exchange will increase on-site inspections for major asset reorganizations to prevent illegal activities such as “shell preservation” and “shell speculation.”
Investors are encouraged to stay informed about these developments by downloading the official APP of “Securities Times” or following the official WeChat account. It is important to remember that the information provided in this article is for reference only and does not constitute investment advice. All investments made based on this information are at the individual’s own risk.