Yunnan Province Implements Three-Year Action Plan to Improve Listed Company Quality and Resolve Risks
In an effort to enhance the quality of listed companies and address potential risks, the General Office of the Yunnan Provincial People’s Government has released a notice on the issuance of Yunnan Province’s three-year action plan for the period 2023-2025.
The plan aims to consolidate the responsibilities of listed companies for risk management and establish a fixed-point contact mechanism between state and municipal governments. It also seeks to develop an “one enterprise, one policy” assistance plan and risk classification resolution plan.
Local governments are required to actively cooperate with securities regulatory authorities to swiftly remove listed companies that lack the ability to sustain operations, seriously violate laws and regulations, or disrupt market order. This will further strengthen the delisting mechanism and ensure a smooth exit strategy for non-viable companies.
To address risks, the plan supports listed companies in resolving issues through mergers, acquisitions, reorganizations, bankruptcy, and restructurings. High-risk listed companies will be encouraged to undergo comprehensive reorganization, while high-quality assets within the region or province will be facilitated to enter listed companies through the reorganization process.
For bankrupt and reorganizing listed companies, the plan emphasizes the importance of efficient legal procedures. People’s courts at all levels are urged to utilize government-court linkage mechanisms, employ methods such as bankruptcy reconciliation and pre-reorganization, and efficiently handle bankruptcy cases in accordance with the law.
After successful reorganization, financial supervision, taxation, and other departments are mandated to repair and reorganize corporate credit as per the regulations.
To tackle stock pledge risks faced by listed companies, the plan supports the participation of banks, securities firms, insurance companies, and private equity funds. Measures will be taken to prudently handle issues related to the extension and forced liquidation of stocks pledged by major shareholders.
The plan also calls for the establishment of a fault-tolerant mechanism and moderate exemption from investment risk investigations and enterprise indicator assessments for state-owned capital investment projects or funds with clear bailout purposes and government support.
Lastly, the plan emphasizes the importance of judicial functions in preventing and resolving criminal risks faced by listed companies. Authorities will harness the role of the judiciary to effectively address such issues and maintain market stability.
The action plan demonstrates the commitment of the Yunnan Provincial People’s Government to promote the sustainable development and stability of the listed company sector. It is expected that the implementation of this plan will significantly improve the quality of listed companies in the province and contribute to the overall growth and stability of the regional economy.