CSRC Released Guidelines to Enhance Regulatory Oversight over IPOs, Listed Companies and Brokers
ISSUING AUTHORITY:
China Securities Regulatory Commission
DATE OF ISSUANCE:
March 15, 2024
EFFECTIVE DATE:
March 15, 2024
On March 15, 2024, the China Securities Regulatory Commission (CSRC) issued three new guidelines aimed at bolstering supervision of initial public offerings (IPOs), listed companies, brokers and public offering funds. These guidelines comprise the Opinions on Improving the Quality of Listed Companies through Rigorous Enforcement of the Admission Criteria for Issuance and Listing of Companies (for Trial Implementation), the Opinions on Strengthening the Supervision and Administration of Securities Companies and Public Funds to Facilitate the Development of First-Class Investment Banks and Investment Institutions (for Trial Implementation) and the Opinions on Strengthening the Supervision of Listed Companies (for Trial Implementation). Additionally, CSRC also introduced a directive to improve its operational capacities and enhance self-construction of its system.
The newly issued guidelines bring in stringent procedures for IPOs and stock offerings, along with increased scrutiny over the activities of publicly traded companies, and the strengthening of professional standards within securities companies.
IPO applications will be strictly vetted to prevent companies from excessive fundraising. Moreover, CSRC is stepping up its crackdown on financial fraud, focusing particularly on five types of illegal practices, namely: long-term systemic fraud and third-party cooperation in fraudulent activities, fraudulent issuance of stocks and bonds, accounting manipulations, falsification through activities such as supply chain finance and financing trade, and fraudulent actions that undermine the interests of listed companies.
References:
1. 《關于嚴把發行上市準入關從源頭上提高上市公司質量的意見（試行）》
3. 《關于加強證券公司和公募基金監管加快推進建設一流投資銀行和投資機構的意見（試行）》
4. 《證監會落實政治過硬能力過硬作風過硬標準全面從嚴加強自身建設》
