China cracks down on false disclosures by listed firmsUpdated: 2012-12-17 09:41
( Xinhua) BEIJING - Securities regulators will take strong measures against the disclosure of false information by listed companies as part of efforts to strengthen monitoring efforts.
"The China Securities Regulatory Commission (CSRC) will mete out punishments to listed companies found to be involved in accounting fraud and the concealment of important information, as well as intermediaries who fail to exercise their duties," Yao Gang, vice chairman of the CSRC, said on Sunday.
The information released by listed firms and duties performed by intermediaries are closely linked with the interests and benefits of investors, he said.
The CSRC will help investors obtain compensation through legal procedures for losses caused by false disclosures. Other serious violations, such as fraudulent initial public offerings (IPOs), will also result in severe punishments, Yao added.
China will further improve its IPO mechanism and contract administrative procedures, he said.
The stock market has experienced major turbulence this year, with the benchmark Shanghai Composite Index dipping to a fresh low since early 2009 at the end of November. The index has rebounded in recent weeks.
"The China Securities Regulatory Commission (CSRC) will mete out punishments to listed companies found to be involved in accounting fraud and the concealment of important information, as well as intermediaries who fail to exercise their duties," Yao Gang, vice chairman of the CSRC, said on Sunday."
If that's not what they've been doing to this point, then what HAS the CSRC been doing? Isn't the entire point of having an SEC to do what's outlined in the first sentence of that quote?
Just look how they handled the FB IPO. After they over priced it, Morgan Stanly told his found manager buddies not to touch the stock making hundreds of millions on the expense of the retail investors.
What the SEC did about it ? Now they going after Chinese companies when the fraud is right here in our back yard.
It's like your house is a mess but you are trying to put somebody's else house in order instead of cleaning up your mess first.
What a bunch of crooks.
If the CRSC were to actually do what they say they are going to do, there wouldn't be enough
hours in a year to enact their plan. Oh, I forgot, no fraud in China or it's stocks. Which brings me
to the next point, you won't publicly hear of many because the Chinese wouldn't want that news
to get out, they'll just do one of their many cover ups.