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On Saturday, China Securities Regulatory Commission (CSRC) introduced a regulation which said securities companies should remind investors about potential risks when shareholders decide to launch a new business or introduce an innovative business.
The annual report and half-year report by listed securities companies should include risk assessment conditions, as well as reasons for risk and probable effects.
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Photo taken on April 1, 2009 shows a woman smiles before a stock price electronic board in Beijing. China's benchmark composite stock index on the Shanghai Stock Exchange closed at 2408 points on Tuesday |
In addition to the annual operation report, companies were asked to deliver a supervision and monitoring annual report which includes audit and accounting information.
If a company or high-rank official is involved with serious illegal activity, and that results in worsening financial condition, the company should inform all shareholders.
The CSRC said the regulation, which was made on the basis of the Securities Law, took effect April 3.