Source: Xinhua | 2013-1-29 | NEWSPAPER EDITION
CHINA'S securities regulator has begun to act on violations that occurred during initial public offerings last year, with more sponsors being penalized for dereliction of duty.
Since September 2012, the China Securities Regulatory Commission has sent eight warning letters to six brokerages that failed to disclose information in a timely manner after their newly-listed clients' profit fell, the China Securities Journal said yesterday.
Three letters were sent to CITIC Securities, Guosen Securities and Everbright Securities this month, the report said.
The CSRC can impose punishments on sponsors and issuers if listed companies post annual profit declines of 50 percent or more in the same year that their shares became available for trading on the stock market.
The penalties range from a ban ranging from 3-12 months on sponsors and issuers' IPO business to the revocation of sponsorship qualifications.
The brokers involved may be downgraded and their investor protection fund will be raised sharply.