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. 《关于严把发行上市准入关从源头上提高上市公司质量的意见（试行）》
3. 《关于加强证券公司和公募基金监管加快推进建设一流投资银行和投资机构的意见（试行）》
4. 《证监会落实政治过硬能力过硬作风过硬标准全面从严加强自身建设》
