Shenzhen Stock Exchange File Photo: CFP

The Shenzhen Stock Exchange rolled out new measures to rein in risks on the capital markets by classifying the risks of listed companies into four categories. 

According to a statement released by the stock exchange on Sunday, listed companies will be classified into four categories: high-risk, lower high-risk, attention class and normal companies. 

The stock exchange listed a number of conditions under which a public company is likely to be defined as high risk. These include companies whose main business was halted and had their bank accounts frozen. Companies that have applied for bankruptcy, liquidation or whose internal controls had major flaws might also be classified as high risk. 

A company could be listed as high risk if it or its major subsidiaries are being investigated for suspected violation of securities laws. 

The stock exchange also noted that a listed company can't be classified as "normal" if it is suspected of violations or if it is engaged in major pending lawsuits that could have a large impact on the company's daily operations.

The measures were rolled out as the government has accelerated financial reforms and opening of the financial sector to overseas investors. 

The Shenzhen Stock Exchange's NASDAQ-style ChiNext board has debuted new rules that allow companies to participate in an IPO registration system. The first batch of companies that went public under those new regulations saw share prices rise on their first day of trading.