Sound Listed-Company Supervision

Functions and regulatory fundation of SSE

Shanghai Stock Exchange has long been committed to improving the transparency of listed companies, to protecting the legitimate rights and interests of investors, and to urging listed companies to fulfill disclosure obligations in true, accurate, complete, timely and fair manners. Through enforcing information disclosure regulations, SSE has found effective methods to reveal the risks of listed companies, give full play to the role of public oversight mechanisms, and prompt the corporate governance norms gradually shifting from the external pressure to the internal needs of listed companies, thus enhancing the operational standards and improving the qualities of listed companies, and preventing the conjection and outflow of market risks.

According to the provisions of the Securities Law of the People's Republic of China and also based on the Stock Exchange Management Approach as well as the Listed Company Information Disclosure Management Approach, the Exchange shall bear the oversight responsibilities of information disclosure of listed companies and relevant information disclosure obligor. According to the Exchange's internal division functions arrangements, the Listed Company Management Department exercises such functions on behalf of the Exchange. The Rules Governing the Listing of Stock on Shanghai Stock Exchange is the regulatory fundation for the listed company information disclosures.