What’s new: China’s securities watchdog is soliciting public comment on a new regulation for securities companies intended to improve supervision push them to strengthen corporate governance.
Under the new rules, shareholders and those in control of securities companies would be barred from: false capital contributions and disguised withdrawal of capital contributions; interfering in the operation and management of the company in violation of regulations; forcing the companies or personnel to provide financing or debt guarantees directly or indirectly in violation of regulations; and conducting improper related-party transactions with the company, according to a draft released Friday by the China Securities Regulatory Commission (CSRC).
