The head of China’s securities regulator has called for improving measures to ensure full information disclosure in order to expedite the growth of the country’s capital markets.
Speaking in Shanghai at an event to commemorate Pan Xulun (潘序论), the “father of Chinese accounting,” Liu Shiyu (刘士余), the head of the China Securities Regulatory Commission said that full information disclosure lies at the core of capital market development.
“The disclosure of information by companies, and in particular accounting information, is a key basis for decision-making by investors,” said Liu.
“The quality of accounting information directly impacts the lawful rights and interests of investors, and directly impacts the operating efficiency and results of the market…it is necessary to use accounting system arrangements to resolve the problem of information asymmetries between the multitude of companies and the multitude of investors.
“Overseas and domestic practice proves that accounting systems are key systems for protecting the lawful rights and interests of capital market investors in general…without registered accountings playing the role of ‘gatekeepers’ for the quality of accounting information, we cannot have an open, fair and just market order, and we cannot have capital markets with enduring stability that a full of vitality.”
