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China re-classifies listed companies
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THE China Securities Regulatory Commission (CSRC) on Tuesday issued a guidance notice on the re-classification of listed companies, a move to standardize information disclosure on the securities market.
A spokesman of the CSRC said that, for various reasons, China had failed to formulate a unified classification standard of listed companies in the early development stage of the market. “As a result, China's two bourses have been operating on different standards set by themselves," he said.
Previously, listed companies on the Shanghai Stock Exchange were classified into four categories -- manufacturing industry, commerce, civil service and the general sector. Companies on the Shenzhen Stock Exchange, however, were classified into five, with the addition of the financial sector, the spokesman pointed out.
However, these rough classifications have proved unable to meet the demands of the fast-growing securities market, bringing inconvenience for in-depth market analysis, he noted.
The new standards, drawn up on the basis of trial guidelines issued by the CSRC in 1999, singles out a number of newly-emerging sectors, such as information technology and bio-pharmacy, unites computer, telecommunications and information services into one, separates bio-pharmacy from the pharmaceuticals sector, and introduces the postal sector into social services and other services into the new hi-tech sector.
The listed companies will be classified into different industries according to the proportion of business volume. Once classified, a listed company will not be able to change its category unilaterally, and in the case of merger or transfer, the company must apply to the CSRC for a change of status.(Xinhua)
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