The International Forum on Application of XBRL (eXtensible Business Reporting Language) Standard in Domestic Securities Industry, sponsored by the Shanghai Stock Exchange (SSE), has recently been held in Shanghai. Assistant Chairman Wang Jianxi of the China Securities Regulatory Commission (CSRC), pointed out in his speech that the application of XBRL standard in the securities industry would be of great importance in promoting the standardization of information disclosure of domestic listed companies, improving the efficiency of information transmission, facilitating information intermediaries' improvement of services, further enhancing public investors' confidence as well as contributing to the conformity of China accounting standards with international ones. The CSRC hopes that the standard's trial application would be first carried out among listed companies. (Feeling the most powerful offensive-type wave band of China’s stock market…)

Wang said that according to the trial and practice of the SSE and the Shenzhen Stock Exchange, it is predicted that the application of XBRL standard in China will bring about a series of significant changes to the market.

Firstly, the quality of listed companies' information disclosure will be improved. The standard, through language unification between the corporate financial reports' data and the off-balance-sheet statement, has realized the automatic treatment to financial data articulation. This has objectively increased the difficulty and costs of making false accounts and improved the efficiency of the CSRC, the SSE and the public's supervision. Therefore, the accurateness and quality of listed companies' information disclosure are provided with technical support.

Secondly, through standard and uniform language of corporate financial data, the searching in listed companies' database is greatly empowered, thus laying the foundation for a convenient and efficient company analysis to further improve services for investors.

Thirdly, the investors' confidence enhances and this helps to attract foreign investment. The XBRL standard reserves an elastic range to enable users to develop and define new tags in accordance with actual requirements of different countries, industries and enterprises. This has solved the problem of understanding international accounting language to certain extent and thus prepared conditions for foreign investors' understanding and investing in China.

Fourthly, it has laid a foundation for listed companies' internationalization. Objectively speaking, it is another reason why the standard can be soon popularized internationally and receives high recognition in developing countries especially.

Affirming the efforts made by the two stock exchanges and some listed companies in promoting the application of XBRL standard, Wang also expected that relevant departments will continually draw lessons from experiences and gradually establish a XBRL standard that adapts to China's corporate financial reports in future implementation of the XBRL standard, with an aim to provide high-quality services for China’s securities market and enterprises.

CSRC Securities Standardization Committee Director Xu Yaping, SSE Deputy General Manager Zhou Qinye, XBRL International Steering Committee President Louis Matherne and XBRL Japan Head Eiichi Watanabe delivered speeches at the summit.