Securities Companies Not Allowed to Engage in Risk InvestmentChina Securities Regulatory Commission (CSRC) announced April 17 that securities companies are not permitted to engage in venture capital investment directly or indirectly by way of buying the stocks of venture capital companies.According to the Circular on Regulating Securities Companies' Participation in Venture Capital Investment issued by CSRC recently, making direct venture capital investment by securities companies is incompatible with current laws and regulations. CSRC stipulates that securities companies are not allowed to make risk investment directly or indirectly through buying stocks from venture capital companies, so as to spur securities companies to standardize their operation and prevent risks caused by their blind risk investment. An official with the CSRC said that securities regulatory departments in various localities should urge the securities companies under their jurisdiction, which have already been engaged in risk investment, to conduct check-up and rectification work which should be completed in six months from the day of the issuance of this Circular. The official stated that companies found to continue to engage in risk investment in violation of the stipulations would be punished by CSRC according to the merits of their cases and related laws and regulations. By PD Online staff member Li Yan |
| People's Daily Online --- http://english.peopledaily.com.cn/ |