China Securities Regulatory Commission, Circular on Regulating Information Disclosure of Listed Companies and Acts of Relevant Parties

Issued: August 15 2007

Main Contents: Where a listed company anticipates that it will be difficult to maintain the confidentiality of a material event under planning or the related event has already been divulged, it shall take the initiative to apply to the stock exchange for suspension of trading of its shares. Where there is unusual fluctuation in share trading when there is a market rumour involving the listed company or in the absence of any announcement of material price-sensitive information, the listed company shall take the initiative to apply to the stock exchange for suspension of trading of its shares (Article 4). Where, excluding large cap stock factors and inter-sector factors, the accumulated price fluctuation range of a listed company's shares exceeds 20% within 20 trading days prior to the announcement of material price-sensitive information, the listed company shall, at the time of application to the China Securities Regulatory Commission (CSRC) for an administrative licence, provide evidence to prove that no insider trading was conducted by insiders or direct relatives (Article 5).

Where a listed company discloses that there is no major asset restructuring, acquisition or share issue in the clarification announcement or the announcement on the unusual fluctuation in share trading, it shall undertake that no event of the same nature is planned within at least the next three months (Article 6). Where a listed company intends to implement a material event of no precedence and material uncertainty that requires policy consultation and discussion of the proposal with the relevant department, it shall, before policy consultation and discussion of the proposal with the relevant department, apply to the stock exchange for suspension of trading of its shares before the market closes (Article 7). Where a listed company encounters a material event involving an administrative licence and of no precedence and material uncertainty that requires policy consultation and discussion of the proposal with the relevant department, it shall submit to the CSRC the relevant documents evidencing whether insiders or direct relatives have held or traded the listed company's shares within six months prior to the occurrence of the event, and provide sufficient evidence to prove that the relevant personnel has not carried out any insider trading (Article 8).