Author: China National News

Posted: Monday, February 27th, 2017

 

 

In a bid to further open its markets to foreign companies – China securities regulator has said that the country will now focus on stable development of its capital markets this year.

The top securities regulator said on Sunday that the country will focus on stability and reform.

Addressing a news conference in Beijing, Liu Shiyu, chairman of the China Securities Regulatory Commission (CSRC) said, “We will not waver from reforms (to make China’s capital markets) more market-based, law-based and international.”

As speculative activity and leverage in the economy rise, Chinese regulators are focused on controlling risks in financial markets.

Securities regulator have vowed to clear out «abnormal phenomena» from capital markets.

In a recent statement, the CSRC pledged to target «barbaric» leveraged buyouts and to restrict excessive fundraising by some listed companies, with a focus on private share placements.

Earlier in February, Liu had described law-breaking financial tycoons as «giant crocodiles» and had assured that the CSRC would take them down, claiming that they would not be allowed to take advantage of retail investors.

Liu added in the conference that balancing the needs for stability and progress were crucial, especially in managing the primary market.

He said that limiting or halting initial share sales in order to stabilize the secondary market doesn’t «solve the problems of long-term healthy development of capital markets.”

Fang Xinghai, CSRC deputy chief, who was also part of the news conference said that China is discussing measures that would allow foreign firms to take a larger stake in domestic joint venture securities and futures brokerages, without providing a timetable for any changes.

Xinghai however clarified that so far, there was no timetable for the launch of an international board that will allow foreign-invested enterprises to list shares domestically in China.

He added that issues such as accounting treatment and disclosure rules were still being studied.

Since the mid-2015 stock market crash that wiped out almost $3 trillion of share value, China has intensified crackdown on illegal market activities.

 

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