The China Securities Regulatory Commission (CSRC) has unveiled plans to significantly reduce the size of its issuance examination committee (证监会发审委) and reduce the number of part-time members.
On the evening of 30 September CSRC issued the draft version of its “Decision Concerning Amendment of the ‘China Securities Regulatory Commission Issuance Examination Committee Measures'” (关于修改〈中国证券监督管理委员会发行审核委员会办法〉的决定) for the solicitation of public opinions.
The draft sets the number of members of CSRC’s issuance examination committee at 35, as compared to the 66 members stipulated by the current measures.
Article 6 of the current measures states that “there are 66 issuance examination committee members” of which 42 are full-time members and 21 part-time members.
33 of these members hail from China’s securities regulatory system, while the remaining 30 are recruit from other departments and commissions or tertiary and financial institutions.
The amended version of the draft states that “there are 35 issuance examination committee members…comprised of CSRC’s professional staff and relevant experts from outside CSRC as appointed by CSRC.”
One Beijing-based investment banker said to state-owned media that “the phrasing indicates that there will be a large-scale reduction in the number of part-time committee members.
“This change is normal, given that some part-time committee members are state-owned enterprise officials and renowned specialist professors, whose own affairs are quite pressing, and very rarely participate in issuance examination remark.”