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China to Further Enhance Enforcement of Securities Law
China's securities regulatory authorities are drafting new rules and regulations to supplement the securities law in a bid to standardize the securities market.
Cheng Siwei, vice-chairman of the Standing Committee of the National People's Congress (NPC), made the remarks while giving a briefing on the implementation of the securities law to Chinese lawmakers Thursday.
At the on-going 22nd session of the Standing Committee of the National People's Congress, the vice-chairman said that the securities market regulators are working on detailed rules regarding market supervision, listed companies and securities firms management.
The Standing Committee of the NPC, China's top legislature, adopted the country's first Securities Law on December 29, 1998, which took effect on July 1, 1999.
Since the Securities Law was enforced, the China Securities Regulatory Commission along with other authorities have done a lot to standardize and promote the market and have achieved satisfactory results, said Cheng.
The commission introduced five regulations and more than one hundred rules to standardize market order, and abolished old rules prior to the implementation of the securities law, Cheng noted.
New procedures on stock issuance and information disclosure, as well as securities registration systems have been improved or updated to meet the new demands of the market, Cheng said.
Sources said that related supervision departments dealt with 285 cases involving illegal dealings of securities firms, and punished 92 institutions and 251 persons. Moreover, Chinese courts at various levels have handled 20-plus illegal securities cases since 1998, which involved counterfeiting and shares issuance without approval.
Cheng noted that problems still exist, such as inaccurate information release, insider control and irregularities by securities firms and intermediary agencies.
Cheng urged related departments to step up efforts to improve the current regime of listed companies' corporate governance and standardize rules on punishing irregularities and B share dealings.
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