SZSE Amends Periodic Report Disclosure Memos

date: 2018-2-13

Recently, CSRC made amendments to the norms on the content and format of annual report disclosure by listed companies, further completing the disclosure requirements on entrusted wealth management, social responsibility and environmental information. In addition, the standards on new audit reports have been fully adopted among listed companies from 01 January 2018 onward. Accordingly, for orderly cohesion with such standards, SZSE has amended the following memos to enhance the pertinence and effectiveness of listed units’ information disclosure and guide them in annual report formulation and disclosure: Memorandum No. 1 on the Main Board Information Disclosure Business: Periodic Report Disclosure, Memorandum No. 2 on the SME Board Information Disclosure Business: Periodic Report Disclosure, and Memorandum No. 10 on the ChiNext Board Information Disclosure Business: Periodic Report Disclosure, released on and applicable since 13 February 2018.


The amendments mainly involve modified audit opinions, entrusted wealth management and connected fund transactions. With regard to a modified audit opinion, its scope is pinpointed, which covers the unqualified opinion (qualified opinion, disclaimer of opinion, adverse opinion) and the qualified opinion with emphasis-of-matter paragraph, other matter paragraph or material going-concern paragraph. This is to guide listed companies in submitting periodic report materials as per Chapter VI of Rules Governing the Listing of Shares under the background of adopting new accounting standards. As to entrusted wealth management, the accrual calculation standard for disclosure by type is defined as “the single day maximum balance of a certain type of entrusted wealth management during the reporting period”, which reflects listed units’ largest risk exposure in entrusted management and ensures the accuracy and effectiveness of information disclosure. In terms of connected fund transactions, the definitions of “non-operating fund occupation”, “non-operating transactions” and “operating transactions” are further specified to avoid listed companies’ incorrect information filing due to concept confusion.


An SZSE principal expressed that the amendments are crucial moves taken to implement strict and comprehensive law-based regulation, perfect listed units’ information disclosure system and reinforce disclosure supervision. All the units listed in SZSE shall earnestly study the annual report disclosure norms issued by CSRC, the aforesaid SZSE memos and other relevant rules and perform their obligations of disclosing 2017 annual reports and submitting the relevant materials to truly improve the disclosure quality and formulation efficiency of annual reports.