On 25 October, the CSRC published the Establishment by Listed Companies of a System Governing the Registration of Parties to Insider Information Provisions, which came into force on 25 November. The Provisions require listed companies to establish a system to govern the registration of parties to insider information, with the aim of enhancing the management of insider information at its source.
The Provisions primarily govern listed companies. If the initiator of a significant matter involving price-sensitive information is a listed company, it should compile a list of the parties to the inside information in accordance with the Provisions and maintain the confidentiality of such insider information.
If the initiator of a significant matter involving price-sensitive information is a party other than a listed company, such as a shareholder or de facto controller of a listed company or their connected parties; or an intermediary such as a securities company, a securities services agency or a law firm; or an initiator of a potentially significant matter such as an acquirer or a counterparty to a major asset restructuring, then each of these parties is required to compile a list of parties to the inside information at its respective work unit or office, and deliver the list to the listed company within a specified time.