Financial Stability and Development Committee Declares “Zero Tolerance” for Capital Market Fraud

51

One of China’s top financial authorities has issued a slew of new measures to expedite the development of the country’s capital markets, with an especial focus on fraudulent conduct.

A meeting of the State Council’s Financial Stability and Development Committee (FSDC) on 11 July proposed a total of seven measures for driving the “healthy, long-term development” of China’s capital markets, including:

  • Strict handling and punishment of major illegal, criminal cases;
  • Strengthening of civil compensation and criminal prosecution;
  • Deepening of reforms for market withdrawal systems;
  • Acceleration of criminal law reform;
  • Strengthening of public opinion guidance.

The FSDC also said that it would “comprehensively implement work requirements for zero tolerance of illegal or criminal conduct on capital markets.”

The 11 July meeting marks the fourth time in the past several months that the FSDC has publicly highlighted fraudulent and criminal conduct on China’s capital markets.

The FSDC said that its goal would be to “clean up the market ecosystem, to enable markets to fully play their resource allocation function.”

As of the end of May 2020 China was host to over 165 million A-share investors, primarily comprised of small and medium-sized investors.

Related stories

Fi­nan­cial Sta­bil­ity and De­vel­op­ment Com­mit­tee Out­lines 11-Point Re­form Pro­gram for Chi­nese Fi­nance

China Will Ex­pand Vigour of Counter-cy­cli­cal Mea­sures: Fi­nan­cial Sta­bil­ity and De­vel­op­ment Com­mit­tee

Fi­nan­cial Sta­bil­ity and De­vel­op­ment Com­mit­tee Un­veils Post-COVID-19 Pol­icy Plans

LEAVE A REPLY

Please enter your comment!
Please enter your name here