China details measures to improve quality of listed companies
The State Council, China's cabinet, has detailed multiple measures to improve the quality of listed companies.
China will strengthen institutional construction of the capital market, step up market oversight, optimize the structure and development environment of the listed companies, and improve the quality of information disclosure, according to a guideline released by the State Council.
The guideline said channels for institutional investors to participate in corporate governance should be improved and the implementation of the standard internal control system should be accelerated in order to improve the governance of listed companies.
Measures to implement a registration-based system and allow more qualified foreign investors to make strategic investments in listed companies on the Chinese mainland should be put into effect to encourage listed companies to become better and stronger, the guideline said.
Meanwhile, measures to strengthen the exit mechanism for listed companies and solve the prominent problems of listed companies will also be carried out, according to the guideline.
The guideline added that efforts should be made to step up punishment for irregularities such as market manipulation and insider trading, improve the comprehensive regulatory system for listed companies, and establish a sound information-sharing mechanism.