China Securities Regulatory Commission, Compilation Rules for Information Disclosures by Companies That Offer Securities to the Public (No. 7): Contents and Format of the Annual Reports of Commercial Banks Special Provisions

Issued: December 21 2000
Effective: as of date of issue
Interpreting authority: China Securities Regulatory Commission (CSRC)
Applicability: These Provisions apply to commercial banks that issue shares to the public (Article 1).

Main contents: According to the Provisions, in addition to the requirements generally applicable to the annual reports of public share issuing companies, commercial banks shall comply with certain special requirements (Article 2). Commercial banks are required to disclose bank-related information such as lending, their capital adequacy ratios and inter-bank borrowing (Article 3). They are also required to disclose information concerning the risks they have undertaken, such as credit risk, liquidity risk, exchange risk, non-performing loans and bad debts (Article 4). Commercial banks shall engage international accounting firms specially licensed by CSRC and the Ministry of Finance to audit their supplemental financial information prepared on the basis of internationally accepted accounting and disclosure principles (Article 5). They shall also provide explanations as to the integrity, rationality and effectiveness of their internal control systems (Article 6).
Related legislation: PRC, Company Law (Revised), Dec 25 1999, CLP 2000 No.1 p4; PRC, Securities Law, Dec 29 1998, CLP 1999 No.1 p25 and Compilation Rules for Information Disclosures by Companies That Offer Securities to the Public No.2: Notes Appended to Commercial BanksFinancial Statements Special Provisions, Nov 2 2000, CLP 2000 No.10 p4