China’s securities regulator revises delisting rules
Violations in areas such as public safety and public health are now included as mandatory delisting triggers
The China Securities Regulatory Commission announced it has amended its delisting rules, which now include violations in areas such as “public safety” and “public health” in the mandatory triggering conditions, The Paper reported.
The amendment states that listed companies involved in fraudulent issuance, violations of major information disclosure or other major illegal activities concerning national security, public safety, ecological safety, production safety and public health and safety, the stock exchange shall move to suspend or terminate the listing of the company’s shares.
Also, another major revision states that the securities regulator can suspend or terminate the listing when illegal activities are found.
This compared to the previous version where companies with significant legal violations would first suspend trading and then withdraw from the market.
The new rules have been in effect since July 27.