Breaking News

China's Securities

China’s Securities to Implement Stringent Guidelines for IPOs and Listed Companies

Beijing, March 15, 2024, The Europe Today: In a move aimed at bolstering oversight of initial public offerings (IPOs), listed entities, brokerage firms, and public offering funds, China’s securities regulatory authority, the China Securities Regulatory Commission (CSRC), has announced the forthcoming issuance of three comprehensive guidelines. This announcement came from Li Chao, the Vice Chairman of CSRC, on Friday.

The guidelines are set to encompass a spectrum of regulatory measures to elevate supervision standards and fortify the regulatory framework within the financial sector. Additionally, a directive aimed at enhancing the regulatory body’s own capabilities is slated for release alongside these guidelines, according to Li Chao’s statement.

Highlighting the commission’s resolve to combat financial malfeasance, Guo Ruiming, the head of CSRC’s Department of Listed Company Supervision, delineated the focus areas for regulatory scrutiny. Five distinct categories of illicit practices will be targeted with intensified regulatory measures. These include protracted systemic fraud, collaboration with third parties in fraudulent activities, deceptive issuance of stocks and bonds, exploitation of accounting policies for profit manipulation, and falsification through activities such as financing trade. Guo emphasized that fraudulent actions detrimentally affecting the interests of listed companies will be rigorously addressed.

Moreover, to reinforce regulatory efficacy, the CSRC emphasized its commitment to bolstering random sampling procedures and conducting on-site investigations of companies slated for listing.

Yan Bojin, who heads the CSRC Department of Public Offering Supervision, underscored the commission’s stance on companies withdrawing their listing applications during on-site investigations. Bojin clarified that such withdrawals would not preclude thorough scrutiny, signaling the commission’s unwavering dedication to upholding regulatory integrity and ensuring compliance within the securities market.

The forthcoming guidelines and heightened regulatory measures underscore China’s concerted efforts to strengthen the integrity and transparency of its financial markets, fostering an environment conducive to sustainable growth and investor confidence.