New law to intensify management of securities market in China: CSRC chairman

By Xie Jun Source:Global Times Published: 2020/1/21 11:09:29

People walk outside the headquarters of the China Securities Regulatory Commission in Beijing. File photo: VCG

This year is set to be critical for the deepening of capital market reforms and legal construction, said Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), in an interview with the Xinhua News Agency during which he elaborated upon details of the new securities law. 

“The CSRC will take the implementation period of the securities law as an opportunity to clear up and perfect existing capital market rules and regulations,” said Yi, adding that the CSRC has already begun making or amending supporting rules.

He also stressed that the CSRC will strengthen cooperation with other government departments to crack down on securities violations, via methods such as information sharing. 

The new securities law was passed in December and will be implemented from March, 2020. 

It will strengthen the management of securities activities and increase the punishments for relevant misbehaviors. For example, it will allow securities regulators certain “timely, effective” law enforcement means, and will perfect regulations to freeze and close down unlawful capital, Yi disclosed. 

Additionally, securities institutions can be fined up to 10 times their business revenues for failing to fulfill their responsibilities, said Yi. 

The government has moved to further standardize the capital markets at a time when it is also launching measures to open up the financial sector and overseas capital is flowing into domestic markets at an increasing pace. 

Mainland markets have been showing a bullish trend recently. The benchmark Shanghai market has risen by more than 2 percent in the past month alone. 

Global Times 

Posted in: ECONOMY

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