China to toughen regulations on brokerages

BEIJING- The China Securities Regulatory Commission (CSRC) said on Tuesday that it will toughen regulations on brokerages and other intermediary institutions for initial public offerings (IPO) in order to raise the quality of the country’s listed companies.

The CSRC said it will soon issue internal control guidelines for the securities brokerages to improve the country’s IPO business. The regulator on Thursday disqualified two IPO sponsors with Ping An Securities for their un-thorough due diligence in the IPO of wine brewer ShengJing Shanhe Biological Technology Shares Co Ltd. The company’s IPO approval was revoked by the regulator in April due to its disclosure of misleading information.