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CSRC Confident in Chinese Listed Companies
The China Securities Regulatory Commission (CSRC), China's securities market watchdog, showed confidence in local listed companies Tuesday, though several listed companies have been found guilty of malpractice recently.
"Illegal activities can be found in almost each stock market," CSRC vice chairman Laura M. Cha said Tuesday, "We are unable to eradicate such malpractice, but we will take real hard measures to punish offenders."
Chinese stock markets have slumped since last July, which has made the public much more sensitive to stock price manipulation or disclosing false information.
Most of the problems Chinese listed companies have now are rooted in the shift that is underway from the old economic system to a modern and open market in China, said Gui Minjie, CSRC deputy secretary general.
"The corporate governance remains weak in local listed companies and in many of them, one shareholder has the majority control, which makes it hard to protect other investors' interests," he said.
"But the supervision is tightening and the transparency is improving, so the CSRC has been able to uncover much more illicit activity," he added.
The CSRC will continue improving the transparency of the stock market and exploring more effective measures of supervision, said Laura M. Cha, who is former vice chairman of the Hong Kong Securities and Futures Commission.
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