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SZSE Establishes the 1st Accounting Advisory Committee to Build Market Synergy and Improve Quality of Financial Information Disclosure in Capital Market

Date: 2020-11-23

To fully implement the guiding principles of the Fifth Plenary Session of the 19th CPC Central Committee and the requirements specified by the State Council in the Suggestions on Further Improving the Quality of Listed Companies, SZSE recently set up the Accounting Advisory Committee. It’s a measure taken by SZSE to further pool market wisdom and leverage the synergy of market participants to jointly improve the financial information disclosure quality in the capital market, support the reform of the registration-based IPO system with “information disclosure at its core”, and ensure steady advancement of the key tasks of deepening the reform of the capital market in all respects and the comprehensive authorization reform of the pilot demonstration zone of socialism with Chinese characteristics.

 

After relevant procedures are duly performed, the list of members of the 1st Accounting Advisory Committee was officially generated and made public. On November 19, SZSE held the 1st Accounting Advisory Committee Inaugural Meeting & Forum, which discussed how the Committee can leverage its role as the bond between self-disciplinary regulation and the market, improve the financial information disclosure quality in the capital market and the quality and efficiency of accounting and audit regulation, and upgrade regulatory approaches against financial frauds such as false financial information disclosure.

 

The 1st Accounting Advisory Committee consists of 26 members from relevant ministries, securities regulators, industry associations, universities, accounting firms, appraisal agencies, securities companies, investment institutions and listed companies. They have profound theoretical knowledge and rich practical experience and possess the qualification required for duty performance. All members serve part-time with a two-year term. The members will provide advisory opinions on major accounting and audit issues involved in SZSE’s relevant work such as issuance and listing review, self-disciplinary regulation and business innovation, conduct researches on strengthening construction of basic systems of SZSE and enhancing the capability of the capital market to serve the real economy, and propose initiatives.

 

An officer from SZSE pointed out that high-quality financial information disclosure is a necessary requirement to improve the quality of listed companies, an effective means to forestall and defuse major market risks, and an important cornerstone to ensure implementation of measures for deepening reform in all respects, so it is of great significance to the sustainable and healthy development of the capital market. The reform of the registration-based IPO system stresses “information disclosure at its core”, with accounting information as the key and accounting regulation at its center. By giving play to role of the Accounting Advisory Committee, we can pool experience and wisdom of experts from various fields, improve the authority and professionalism of issuance and listing review and self-disciplinary regulation, and securely guard the access and exit of the market so as to ensure the high-quality operation of the ChiNext Board and the registration-based IPO system, and foster a good capital market ecosystem. SZSE will, working with those experts, actively practice the principles of “system building, non-intervention, and zero tolerance”, and follow the requirements of “standing in awe of the market, rule of law, professionalism and risks and developing the capital market demands the efforts of people of all walks of life”. SZSE will uphold the working philosophy of “openness, transparency, integrity and impartiality”, and thoroughly understand the requirement of improving the quality of listed companies in the context of the registration-based IPO system. SZSE will act proactively and fulfill its duties, and leverage the synergy among market participants to improve the financial information disclosure quality in the capital market. Besides, SZSE will guard the market access and clear the exit channel, continue to consolidate the achievements of the reform of the ChiNext Board and the pilot project of the registration-based IPO system, in a bid to build a group of high-quality listed companies as required, and speed up the building of a quality innovation capital center and world-class exchange.