China’s CSRC seeks opinion on securities firm initiative
21 March 2013
By Asia Asset Management
The China Securities Regulatory Commission (CSRC) is seeking market opinion on a temporary initiative to allow local securities houses to issue debt financing instruments.
The CSRC said on its website on Sunday (March 3) that the measure is expected to broaden the fundraising channels of securities brokerages in addition to providing more flexible investment tools for investors.
The regulation comprises 18 directives, which regulate a number of items, including; investment scope, investor requirements, the approval process of debt financing instruments issued by securities brokerages including corporate debt, subordinate debt, and beneficiary certification.
Separately, local media reported that the market watchdog is looking to broaden delisting criteria. The most notable change is the raising of listed firms’ net asset value (NAV) requirements. Companies reporting negative NAV are at risk of being delisted, the report said.
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