China Securities Regulatory Commission, Provisions for the Establishment of Management Systems for the Registration of Persons Who Have Knowledge of Insider Information by Listed Companies

Promulgated: October 25 2011
Effective: November 25 2011

Applicability: The term “persons who have knowledge of insider information” refers to the relevant personnel specified in Article 74 of the Securities Law (Article 2). The term “insider information” refers to the information that has not yet been disclosed and concerns the company's business or financial affairs or may have a material effect on the trading prices of the company's securities and its derivatives as specified Article 75 of the Securities Law (Article 3).

Main contents: Persons who have knowledge of insider information have the obligations to maintain the confidentiality of insider information before it is disclosed (Article 4). Prior to the disclosure of insider information in accordance with the law, listed companies shall complete the files of persons who have knowledge of insider information of listed companies, and record in a timely manner the list of persons who have knowledge of insider information during the stages of negotiation and planning, debate and consultancy, conclusion of contract, and during the reporting, delivery, formulation, resolution and disclosure processes, as well as the information on the time, location, basis, format and contents of the insider information to which they are privy (Article 6). The board of directors of listed companies shall guarantee the truthfulness, accuracy and completeness of the files of Persons who have knowledge of insider information, with the chairman of the board as the main responsible person (Article 7). Such files shall be kept for at least 10 years from the date of record (including the dates on which the record is supplemented or amended) (Article 13).