Original title: Urge the issuer and intermediary agencies to return to their positions and improve the quality of the prospectus letter
Our reporter Wu Xiaolu
The reporter learned on October 29 that in order to implement the registration system reform requirements centered on information disclosure, further improve the quality of prospectus information disclosure, and promote high-quality development of the capital market, the China Securities Regulatory Commission has studied and drafted the “Regarding the Improvement of Prospectus Information Disclosure under the Registration System” Quality Guidance (Draft for Soliciting Opinions)” (hereinafter referred to as “Guiding Opinions”), and publicly solicit opinions from the public.
The China Securities Regulatory Commission stated that the core of the registration system is information disclosure. The prospectus is the main vehicle for information disclosure at the stage of stock issuance under the registration system. It is the basic basis for investors to make value judgments and investment decisions. It is the core and most important legal document in the process of corporate listing. Since the pilot registration system for the Science and Technology Innovation Board and the Growth Enterprise Market, the quality of information disclosure in the prospectus has improved, but there are still problems such as lengthy length, insufficient pertinence, excessive compliance information, weak investment decision-making role, and insufficient language conciseness.
“Improving the quality of information disclosure in the prospectus is of great significance in helping investors to better identify and use effective information, enhance the understanding and evaluation of all parties in the market on the reform of the registration system, and give full play to the capital market resource allocation function. It is also of great significance to the steady advancement of market-wide registration Necessary measures for regulatory reforms.” The China Securities Regulatory Commission said.
The “Guiding Opinions” mainly include four aspects: First, the basic principles. Adhere to the needs of investors as the orientation to meet the diverse needs of different types of investors; adhere to the problem-oriented approach and take multiple measures to improve the quality of information disclosure in the prospectus; adhere to comprehensive measures to form a joint effort.
The second is to urge the issuer and intermediary agencies to return to their positions, and to write and prepare high-quality prospectus. The issuer and related personnel shall ensure that the contents of the prospectus are true, accurate and complete, and cooperate with intermediary agencies in their work according to law; all intermediary agencies shall return to their respective positions and carry out the preparation and preparation of the prospectus in accordance with the division of responsibilities. When writing the prospectus, the issuer and intermediary agencies should reduce compliance information and redundant information, make disclosure in close accordance with the issuer’s own characteristics, and focus on optimizing the language expression and layout design of the prospectus.
The third is to give full play to the role of administrative supervision, self-regulation and market restraint mechanisms to guide and improve the quality of information disclosure in the prospectus. The relevant departments of the China Securities Regulatory Commission and the stock exchange shall form a joint effort by strengthening review and guidance and improving the system and rules to guide issuers and intermediaries to improve the quality of information disclosure in the prospectus.
The fourth is to strengthen accountability and ensure the implementation of various measures to improve the quality of information disclosure in the prospectus. Strictly enforce the law and keep the bottom line of truthful, accurate and complete information disclosure in the prospectus. Strictly crack down on violations of information disclosure in accordance with the law. Make full use of legal resources, and take different measures in accordance with the law, depending on the seriousness of the circumstances, for the crude and indiscriminate behaviors that do not constitute falsification of information disclosure, but the content of the prospectus is unclear, confused in logic, and seriously affects the understanding of investors.
.