Notice on Issuing Guidelines No.1 of the Shanghai Stock Exchange for Application of Bond Self-Regulation Rules — Continuous Disclosure of Corporate Bond Information (2023 Revision)

With the development of the bond market and changes in external credit environment, higher standards are expected for the quality of bond information disclosure. In order to further strengthen the risk disclosure function of bond information disclosure, promote the formation of rational pricing, improve the efficiency of bond market resource allocation, and urge market entities to fulfill their responsibilities, the Shanghai Stock Exchange (SSE) has adopted a problem-oriented and risk-oriented approach and combined with previous regulatory practices to release and implement the Guidelines No.1 of the Shanghai Stock Exchange for Application of Bond Self-Regulation Rules — Continuous Disclosure of Corporate Bond Information (2023 Revision). The revision mainly involves the following four aspects:

First, optimizing and integrating the previous rules and requirements for information disclosure. The SSE has absorbed and integrated the disclosure requirements in business rules and guidelines including Guidelines No.2 of the Shanghai Stock Exchange for Application of Bond Self-Regulation Rules — Express Lane for Information Disclosure of Corporate Bonds and Asset-Backed Securities Business and the Notice on Promoting Work on Corporate Bond Information Disclosure in 2022, to establish a more systematic rule system. Content on issuers' substantive rights and obligations in the attachment "Content and Format of Information Disclosure in Interim Report on Corporate Bonds" in the previous Guidelines No.1 of the Shanghai Stock Exchange for Application of Bond Self-Regulation Rules — Continuous Disclosure of Corporate Bond Information has been adjusted to corresponding sections of the main text. Specific format is no longer required in announcements, in order to preserve the necessary flexibility for fulfilling information disclosure obligations.

Second, being risk-oriented to optimize disclosure standards. The SSE has added disclosure items that may lead to the acceleration of credit bonds' redemption, as well as the establishment of a committee for financial institution bondholders; clarified the verification and disclosure requirements for decline or abnormal fluctuations of the price of corporate bonds; and simplified the disclosure requirements for items with low association with credit risks, such as raising the trigger standards for new borrowings, new guarantees, and significant investments.

Third, further strengthening requirements for standardized information disclosure. The SSE has clarified the standard for synchronous disclosure of information by issuers and their related parties both at home and overseas; reinforced the responsibilities of issuers' directors, supervisors, senior management members, and entrusted managers in verifying the content of periodic reports; and specified the disclosure requirements for impact analysis of interim reports and arrangements in the absence from duty of major personnel of the issuer.

Fourth, establishing clear disclosure requirements for bankruptcy and market-oriented restructuring. The SSE has fully taken into account the actual situations of entities in bankruptcy, trusteeship or takeovers, highlighted risk handling, strengthened the disclosure requirements for the progress of bankruptcy or overall risk handling procedures, the formulation and implementation of bankruptcy and settlement, reorganization or market-oriented restructuring plans, and unique items such as special audit assessment reports in bankruptcy proceedings; and appropriately simplified routine disclosure requirements for relevant entities.

Going forward, under the leadership of the China Securities Regulatory Commission, the SSE will fully implement the requirements of the registration system reform, effectively promote the launch and enforcement of the rules through organizing training, optimizing services, strengthening supervision and other means. The SSE will also constantly guide and urge market entities to improve the quality of their bond information disclosure, so as to promote the effective functioning of the SSE bond market, and substantially enhance the quality and efficiency of its services to the real economy.