Listed firms to disclose more info

By Winny Wang  |   2008-12-30  |     NEWSPAPER EDITION

CHINA'S securities regulator requires listed companies to unveil their holdings of foreign financial assets in their annual reports to reflect any impact from the global financial turmoil, according to a statement.

Listed firms must objectively disclose any impact from the financial crisis, credit policy adjustment, fluctuating currency exchange rate and natural disasters on their operations, the China Securities Regulatory Commission said in a statement on its Website on Sunday. They also need to pay attention to devaluation of financial assets and derivatives, the statement said.

Listed firms on the Chinese mainland publish their annual earnings reports from January to April.

Some Chinese financial firms have suffered losses during the economic slowdown. The Industrial and Commercial Bank of China, Bank of China, China Merchants Bank, the Industrial Bank and the Bank of Communications have disclosed a total of US$454.24 million in their exposure to Lehman.

Ping An Insurance in October said it was booking a loss of 15.7 billion yuan (US$2.30 billion) on its investment in troubled Belgian-Dutch financial group Fortis NV.

Meanwhile, China Business News cited an industry source as saying the regulator is ready to launch the growth enterprise board at any moment.

"A set of regulations, including prospectus, approval processes and the system of sponsors, have been mapped out," the source said.