CSRC Issues New Guidelines on Investor Relations Management
The CSRC (China Securities Regulatory Commission) has issued Guidelines on Investor Relations Management for Listed Companies to help listed companies strengthen their management of investor relations.
In February, the CSRC issued a consultation proposing to introduce the guidelines, in a bid to redefine investor relationship management to emphasise information disclosure, shareholder rights protection, and stronger communication with investors.
The new rules establish four fundamental principles of investor relations management – conformity, equality, initiative, and honesty and trustworthiness – calling on listed companies to enhance their practices for dealing with investors.
The new rules add websites, new media platforms and investor education bases as new channels through which listed companies can communicate with investors. They also include new provisions requiring listed companies to improve the quality of and value delivered in briefing meetings held with investors.
The CSRC is also requiring listed companies to include more ESG information in their communications with investors, strengthen their service awareness and complaints handling processes, and establish a sound record-keeping mechanism for investor relations activities.
Requirements are also placed on controlling shareholders, actual controllers, directors, supervisors, and senior managers of listed companies to clarify their roles in investor relations management.
The CSRC said the stock exchanges and industry bodies will also develop guidelines on self-discipline management.
"Stronger investor relationship management is a key measure to improve the quality of listed companies and an important part of investor protection", the CSRC said.
The new measures will strengthen listed company communications with investors, incentivise them to improve their governance, and enhance protections for investors, particularly small and medium-sized enterprises.
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