Date
17 August 2017
BOC NEW LENDING

The Big Picture: POST-IPO OVERSIGHT

The China Securities Regulatory Commission (CSRC) will strengthen monitoring of newly listed firms to protect the interests of small investors, the regulator’s chairman Xiao Gang {肖鋼} said on Monday.

The CSRC will improve its regulatory work in six ways, Xiao said, identifying investor protection, rule execution, post-initial public offering (IPO) monitoring, centralized regulation, diversified regulatory means and transparency as the key tasks.

In a speech delivered at the 2014 National Securities and Futures Regulatory Work Conference, Xiao said the CSRC will simplify its approval procedures and push forward reform of the share issuance registration system. The regulator will make sure that sufficient information is disclosed to the markets.

Observers believe it will take a long time for the CSRC to carry out the necessary reforms although it is stepping up its efforts. The regulator recently announced some other new rules.

Listed companies should observe at least three comparable peers in formulating their stock incentive schemes, the Shanghai Securities News cited the regulator as saying in a Monday report. The CSRC said such schemes could raise the competitiveness of listed firms but they shouldn’t be implemented by any company that is losing money. Listed firms are required to disclose the companies they took reference from in order to protect shareholder interests.

The CSRC has also begun checks on the IPO pricing process of some listing candidates in line with the tightened supervisory regime that was outlined on Jan. 12, the China Securities Journal reported last week. Any party found violating the rules will be blacklisted and barred from participating in the market, it said.

FTZ could roll out financial reform details soon

The Shanghai Free Trade Zone could announce details of a proposed financial reform as soon as this quarter, Shanghai Securities News reported Wednesday, citing Ai Baojun, head of its administrative committee. The FTZ will work on measures that can be replicated elsewhere in the country, deputy director Dai Haibo was quoted as saying. Anti-monopoly audits are also in the pipeline and could be ready in the first quarter, the report said.

Property tax legislation may take two years

A property tax law may take at least two more years after a draft of the proposed legislation was submitted to the national legislature for approval, China Securities Journal reported Wednesday, citing a source with knowledge of the matter. More cities are expected to introduce a property tax trial scheme this year after Shanghai and Chongqing, the report said.

– Contact HKEJ at [email protected]

 

 

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