China Securities Regulatory Commission, Measures on the On-site Inspection of Listed Companies

Promulgated: April 13 2010
Effective: May 20 2010

Applicability: The phrase “on-site inspection” refers to the supervision and inspection of the compliance of information disclosure and corporate governance of listed companies and their subordinate enterprises and organisations (hereinafter collectively referred to as “Inspection Targets”) by the China Securities Regulatory Commission and its agencies (hereinafter collectively referred to as “CSRC”), by way of review and duplication of documents and materials, inspection of physical items, interviews and inquiries at the production, business and management premises as well as other relevant premises of the Inspection Targets (Article 2).

Main contents: On-site inspection shall focus on: (1) the truthfulness, accuracy, completeness, timeliness and fairness of information disclosure; (2) compliance of corporate governance; (3) compliance of the exercise of shareholder rights or controlling power of the controlling shareholders or de facto controllers; and (4) compliance of accounting, audit and financial management (Article 5). Inspections may be conducted through comprehensive inspections, inspections of special items, on-site visits, sit-in on meetings, and reviews (Article 6).