you're reading...
Finance & Economy

China draft regulations target futures market fraud

Guo Shuqing, chairman of China's Securities Regulatory Commission

China’s securities regulator issued draft regulations on Friday that aim to crack down on deceptive practices in the country’s securities futures markets through increased supervision and “name and shame”-style disclosure of chronic offenders, official media reported on Friday.

The draft rules, released for public comment late on Friday afternoon, would increase regulatory supervision of investors, underwriters, accountants, lawyers, and other market participants with an established record of dishonest practices, the official Xinhua news agency reported.

The measures would establish a public database of such individuals and firms and the practices they have engaged in, Xinhua said.

The regulations are the latest in a series of moves this year by the China Securities Regulatory Commission (CSRC) to clean up the country’s chaotic securities markets, which analysts say are rife with insider trading, faulty disclosure, and other forms of manipulation.

A related measure would establish a system for monitoring and public disclosure of instances in which listed companies fail to carry out promises they have made regarding such actions as dividend payments and asset restructurings.

The rules also specify a zero tolerance policy for dishonest practices under which an individual who has engaged in such practices one time would be ineligible for selection to CSRC’s audit committee.

CSRC intends to issue a final version of the rules later this year, the news agency said.

CSRC has issued a flurry of new measures to clean up and develop the country’s financial markets since Chairman Guo Shuqing took office in October last year.

The measures include plans to roll out a high-yield bond market; the establishment of an “investor protection” bureau within CSRC; efforts to crack down on IPO pricing abuse and insider trading; and plans to streamline rules for exchange de-listings.

Gabriel Wildau

About Craig Hill

General Manager at Craig Hill Training Services * Get an Australian diploma by studying in your own country * Get an Australian diploma using your overseas study and work experience * Diplomas can be used for work or study in Australia and other countries. * For more information go to www.craighill.net


No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

China News

China News is not affiliated in any way with any publication in China or anywhere else.

Enter your email address to receive an email each time an article is published, or join our RSS feed. 100% FREE.

Join 3,705 other followers

Want to write for China News?

Read “Contributor Guidelines” above to join our team of 76 contributors. Write news or opinion about issues in China, or post photos and video. Promote your own site.

Recent Posts

China News Articles Have Been Featured In:

%d bloggers like this: