[Last updated: 1 January 2024, unless otherwise noted]

According to the Measures for the Administration of Information Disclosure by Listed Companies, once a company is listed, it must publish its quarterly, interim and annual accounts within a prescribed timeframe, as described below. Any information that may have a major impact on the investors' decision-making must also be disclosed.

Inside information. As one of the continuing disclosure requirements under PRC law, a listed company is required to notify the public of any information that constitutes inside information, that is information likely to cause a significant impact on the trading price of a listed company's securities and the derivatives thereof, such as a major change in the operation of the business, important investments, contracts, debt, loss and purchase assets, a material change of directors, shareholders or capital, any merger, division, dissolution, or application for bankruptcy and other major events.

A listed company shall, in a timely manner, perform the information disclosure obligations for any major event when any of the following circumstances occurs:

• The board of directors or board of supervisors makes a resolution regarding that major event.
• The parties concerned conclude a letter of intent or agreement regarding that major event.
• The directors, supervisors, or senior management personnel know of that major event and report it.

Financial statements. The issuer must issue annual, interim, and quarterly reports.

Financial statements must be prepared in accordance with CASBE. The annual report must be audited by an accounting firm that has the relevant business qualification related to securities and futures.

Pursuant to PRC law, annual reports must be formulated and disclosed within four months from the end of each accounting year, interim reports must be formulated and disclosed within two months from the end of the first half of each accounting year, while quarterly reports must be formulated and disclosed within one month from the end of the third month and the ninth month of each accounting year. Disclosure of the quarterly report for the first quarter must not be made prior to the disclosure of the annual report for the preceding year.

Prohibited trading activities. Prohibited trading activities are supervised by the CSRC. The forms of prohibited trading activities comprise:

• Insider dealing.
• Stock market manipulation or any activity affecting or with an intent to affect trading prices or the transaction volume of shares.
• Disclosure of false or misleading information inducing transactions.
• Fraudulent activities by securities companies and their employees.
• Illegal use of accounts.
• Unlawful flow of funds.
• Trading by enterprises owned by the State or controlled by State assets in breach of relevant regulations.

The CSRC has the power to impose sanctions for these prohibited trading activities. With respect those activities that constitute a crime will also be investigated in accordance with criminal law processes. Under the regime, the CSRC may make various orders, including:

• Order to rectify and give warning to the person or the company.
• Confiscate illegal gains of the person or the company.
• Impose a fine on the person or the company, as well as the person directly in charge and the other persons directly responsible.
• Give a warning to the person directly in charge and the other persons directly responsible.
• Disqualify officers of securities companies.

In addition, where the person or the company is involved in prohibited trading activities and causes losses to others, the person or the company will be held liable for compensation in accordance with the law.