2024-07-05 10:56:29
China’s financial markets regulator vowed on Friday to crack down on financial fraud harder, stressing the need to punish offenders to restore confidence in the country’s troubled stock markets.
The China Securities Regulatory Commission (CSRC) and five other government agencies have issued a series of guidelines against fraud in capital markets. These are their latest efforts to tackle a deep-rooted problem that has affected the world’s second largest stock market.
The statement, which promises a coordinated crackdown on fraudulent companies and their accomplices, comes as regulators investigate the role of PricewaterhouseCoopers (PwC) as auditor of China Evergrande Group, whose main unit in China was found guilty of fraud.
“Financial fraud seriously disrupts capital market order and undermines investor confidence,” the CSRC said in a joint statement.
Regulators will “combat the big bads,” “punish the conflict,” and make coordinated, systemic, and comprehensive efforts to combat fraud.
As part of efforts to stop misconduct, the CSRC said it was working to revise laws to impose tougher penalties.
For example, laws were revised to allow a company to be fined up to 10 million yuan ($1.38 million) for dishonest disclosure, up from 600,000 yuan ($82,568) previously, the watchdog said.
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