BIZCHINA / News |
CSRC sets up new unit to monitor non-public share sales(Shanghai Daily)Updated: 2007-02-01 15:37 China has set up a State department to vet applications by firms to launch sales of shares that don't trade publicly as part of a broad drive to curb irregularities as direct fund-raising activity gears up. The division was formed on December 21 under the China Securities Regulatory Commission (CSRC), according to an undated notice on the watchdog's website yesterday. The new department is tasked with drafting rules on the set-up of non-listed companies and sales of non-tradable shares to public investors, according to the notice. It will also be in charge of coordinating moves to clamp down on securities crimes, which mainly involve illegally pooling public funds, the notice said. A CSRC official yesterday confirmed the division's establishment, without providing details. The securities regulator previously had only one listing committee, which reviews equity issuance on the nation's two stock bourses. Chinese authorities revised the country's securities law early last year, ordering companies that plan to sell stocks to more than 200 shareholders to gain CSRC approval. China's Cabinet last month called on provincial governments and State agencies to combat illegal securities activities to prevent investors from being swindled amid a bullish stock market. The crackdown mainly targets unauthorized public share sales and the issuance of fake securities, the government said, noting a program to educate investors would be launched. "The set-up of the new supervisory body has been long awaited and was propelled by recent rises in illegal fund-raising cases," said Li Zhi, a Hualin Securities Co analyst. (For more biz stories, please visit Industry Updates)
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