China's securities watchdog is mulling over a new rule that would require listed companies to provide transparent, up-to-date information about their performance and, more generally, provide investors with adequate and timely information.

Under the rule, price fluctuations of overseas stocks and financial derivatives must be swiftly communicated to domestic investors and significant events affecting the company must be reported, according to the China Securities Regulatory Commission Wednesday.

The move will help promote transparency of company governance and curb market manipulation by corporate management.

Both individual and institutional investors are entitled to have access to the latest information, according to the new rule.

Companies will be required to disclose information via official reports or notices and not by means of a press conference.

Listed companies in China have long been criticized for the vague and out-of-date information they provide to investors which undermines the healthy development of the capital market.

The new rule said intermediate agencies such as accounting firms should not be mealy-mouthed when evaluating listed companies' financial performance.

Source: Xinhua