China Securities Regulatory Commission, Circular on the Cessation of the Implementation of Special Audit Requirements on Specific Listed Companies

Issued: March 8 2007

Main Contents: The Circular repeals the following requirements, which were in effect prior to the issue of the new enterprise accounting and audit standards: on listed financial companies to engage international accounting firms to conduct an audit, in addition to the statutory audit; and on companies that issue 300 million or more shares in one single issue to conduct a supplementary audit.

Repealed Legislation: Compilation Rules for Information Disclosures by Companies that Offer Securities to the Public (No.16): Tentative Provisions for Supplementary Auditing of A-share Companies, Dec 30 2001; Circular on Improving the Supplementary Auditing of A-share Companies, Dec 30 2001; Circular on Issues Relevant to the Pilot Supplementary Auditing of A-share Companies in 2002, Feb 28 2002; Questions and Answers on the Standards for Information Disclosures by Companies that Offer Securities to the Public (No.4): Differences Between Domestic and Foreign Audits and Bases of Profit Distribution in Relation to Financial Companies, Aug 30 2001, CLP 2001 No.8 p.6; Article 13 of the Compilation Rules for Information Disclosures by Companies that Offer Securities to the Public (No. 5): Special Provisions on the Contents and Format of Share Prospectuses of Securities Companies, 2000; Article 5 of the Compilation Rules for Information Disclosures by Companies that Offer Securities to the Public (No. 8): Special Provisions on the Contents and Format of Annual Reports of Securities Companies, 2000; Articles 17 and 21 of the Compilation Rules for Information Disclosures by Companies that Offer Securities to the Public (No. 18): Special Provisions for Information Disclosures of Commercial Banks, Mar 19 2003; and Article 25 of the Compilation Rules for Information Disclosures by Companies that Offer Securities to the Public (No. 3): Special Provisions on the Contents and Format of Share Prospectuses of Insurance Companies, 2006