The Shenzhen Stock Exchange revises and releases business rules such as the "Stock Listing Rules" to promote the improvement of the governance level of listed companies.

Under the overall guidance of the China Securities Regulatory Commission, the Shenzhen Stock Exchange revised the "Stock Listing Rules" and "Code of Conduct Guidelines" for the Main Board and the Growth Enterprise Board and officially released them to the public on April 24. The main revisions include strengthening the role of company secretary, enhancing the protection of company secretary's duties, improving the management of directors and senior executives, strengthening the supervision of directors and senior executives, and regulating the behavior of controlling shareholders and actual controllers. The Shenzhen Stock Exchange revised and released the "Stock Listing Rules" and other business rules to promote the improvement of the governance level of listed companies. This is in accordance with the requirements of the Opinions on Improving China's Modern Enterprise System issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council, as well as the China Securities Regulatory Commission's Guidelines on Corporate Governance of Listed Companies and Rules on the Supervision of Corporate Secretaries of Listed Companies. The purpose is to strengthen the supervision of "key few" such as directors, senior executives, controlling shareholders, and actual controllers of listed companies, promote proactive roles of company secretaries, enhance the governance level of listed companies, better protect the legitimate rights and interests of investors, especially small and medium-sized investors. Prior to this, the Shenzhen Stock Exchange had publicly solicited opinions on the draft of the relevant rules. For the opinions received, the Shenzhen Stock Exchange analyzed them carefully and, under the guidance of the China Securities Regulatory Commission, fully absorbed and adopted reasonable suggestions, and optimized the wording of some clauses. As for some opinions that have not been adopted yet, they will be further studied in consideration of market developments. The main revisions of this round include: strengthening the role of company secretary by refining their responsibilities in organizing corporate information disclosure work, promoting corporate governance compliance, and facilitating effective communication internally and externally. Second, enhancing the protection of company secretary's duties by integrating their responsibilities into the company's daily operation and management processes, ensuring active cooperation from directors, senior executives, and relevant departments with the company secretary, and improving the reporting mechanism for ineffective duties. Third, improving the management of director and senior executive appointments by strictly regulating the qualifications for company secretaries and requiring them to have the necessary work experience for their duties. Clarifying the procedures for the selection and dismissal of directors and senior executives to prevent inappropriate individuals from taking office. Fourth, strengthening the supervision of directors and senior executives by specifying their duty of loyalty and diligence, enhancing the dual role of company secretaries, and strengthening internal constraints and accountability mechanisms for company secretaries' duties. Fifth, regulating the behavior of controlling shareholders and actual controllers by explicitly prohibiting them and their controlled entities from engaging in activities that may have a significant detrimental impact on the listed company, and strengthening disclosure requirements for activities that have a non-significant detrimental impact. Additionally, in accordance with higher-level regulations, a transitional period for the application of the new and old rules will be arranged in the notification. Going forward, the Shenzhen Stock Exchange will adhere to the unified deployment of the China Securities Regulatory Commission, adhere to the principles of strengthening the foundation and strict supervision, continue to strengthen the supervision of the "key few" in listed companies, and strive to improve the standardized operation and governance level of listed companies, laying a solid foundation for the high-quality development of the capital market.