The executive meeting of the State Council has approved a draft regulation on Supervision and Administration of Securities Company.
“Based on the reform principles and experience in recent years, the Chinese government summarized them into a guideline for the Chinese capital markets, particularly securities companies,” said Charles Guan, managing partner at Grandall Legal Group. “This regulation offers great support for the current Chinese capital market in order to ensure its stable and rational development,” he added.
Problems such as misappropriation of client’s assets, misleading accounting statements, and ossification of business methods still exist in some domestic securities companies, Guan said.
Yet by standardizing and developing the supervisory system of securities companies, Guan said the new draft will ensure the Chinese capital market to become more lawful and transparent.
“It may then integrate itself into the modernized operations of the global capital market,” he said.