CSRC calls for better supervision of listed firms

By Wang Yanlin  |   2008-6-24  |     ONLINE EDITION

CHINA will improve the supervision of listed companies to fight against misdeeds such as information disclosure, insider trading and fund misappropriation, said Fan Fuchun, vice chairman of the China Securities Regulatory Commission.

During a recent meeting, Fan demanded senior executives and big shareholders enhance internal supervision and said the regulator would hand out harsher punishment to those offenders, according to a statement on the commission's Website late yesterday.

Fan also provided an update on the Zoje Sewing Machine Co Ltd and Shandong Jiufa Edible Fungus Co Ltd fund misappropriation case.

According to earlier reports, 13 senior executives with Zoje Sewing Machine were punished after they misappropriated more than 169.8 million yuan (US$24.6 million) while the assets of its biggest shareholder, Shandong Jiufa, were frozen after a misappropriation of more than 500 million yuan was discovered.

Fan asked the listed firms to strengthen the training of board members, senior managers and accountants so that they are more familiar with rules and laws.

Fan's remarks were made as stock markets continued to plunge and senior officials of the regulator kept speaking out to boost confidence among investors.

Shang Fulin, chairman of the commission, said on Sunday that China will spare no effort to facilitate the stable growth of the country's capital market.

Li Deshui, former director of the National Bureau of Statistics, said last week that the country's overall economic fundamentals are healthy and that the recent drop in the stock market should be temporary. He tried to convince people that the corrections won't last long and that the market won't let down mature investors.