China stock market: CSRC denies it is planning to inspect a decade of financial reports as part of clean-up, says fraud prevention a ‘continuous process’
- Media reports about plan reflect ‘the concerns and attention investors have for listed companies’, CSRC official says
- Regulator is gearing up to tighten its grip on public companies and stem a rout in China’s US$8.7 trillion stock market
The commission does not have plans to examine 10 years of public company financial reports, Yan Bojin, head of the CSRC’s department of public offering supervision, said during its first press conference since the Lunar New Year holiday.
“The fact that the media reported [that we might have this plan] reflects the concerns and attention investors have for listed companies,” he said, adding that preventing and punishing financial and issuance fraud was “a continuous process”.
Yan’s statements come at a time when the securities regulator is gearing up to tighten its grip on public companies and stem a rout in China’s US$8.7 trillion stock market. The CSRC said in a post-holiday meeting on Monday that it will weed out unqualified IPO candidates to fundamentally improve the quality of public companies, as well as to deliver better returns for investors.
The regulator also pledged to standardise transactions in various asset classes and to improve the fairness of the trading system.
Reiterating its aim of strengthening the oversight of China’s stock market, Yan said the CSRC will continue to be investor oriented, and will strictly vet initial public offering (IPO) applications.
