In the news: CSRC boosts investor rights, companies face talent hurdle and dispute resolution clauses
October 17, 2013 | BY
clpstaff &clp articlesCSRC chairman has pledged to better protect investors' rights. A survey shows US companies are finding it hard to locate talent and ChinaLawBlog provides key tips for dispute resolution clauses
CSRC considers SME investor rights
The country's top securities regulator has stated the need to protect the legal interests of small and medium-sized enterprises (SMEs) in the capital markets by redesigning the regulatory system. Xiao Gang, the chairman of the China Securities and Regulatory Commission (CSRC) made the comments in an article published by the People's Daily this week. The chairman pointed out that the current regulation system lacks mechanisms to protect investors' legal interests as it focuses more on ensuring the market's financing functions.
Xiao took over from Guo Shuqing in April this year. In that time, he has spoken very little on the subject of protecting investors' interests. Xiao's comments show that the regulator is determined to repair the country's underperforming markets. It is also essential that a balance between small investors and corporate shareholders materialises. The CSRC's current policy means that large shareholders can deprive small investors of profits through mobilising large amounts of capital.
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