CHINAUS AFRICAASIA 中文双语Français
Business\Markets

Regulator warns listed firms over fraud, little dividend payout

Xinhua | Updated: 2017-04-10 14:11

Regulator warns listed firms over fraud, little dividend payout

An investor checks stock prices at a securities brokerage in Fuyang, Anhui province. Lu Qijian / for China Daily

BEIJING - The securities regulator on Saturday vowed to severely punish listed firms that violate market rules or fail to pay dividends when due.

Listed firms that engage in "illicit practices" on the stock market should "pay a heavy price," Liu Shiyu, head of the China Securities Regulatory Commission (CSRC), told a meeting of the China Association for Public Companies.

He criticized some companies, without naming them, for forging financial information, engaging in fraudulent restructuring, and cashing out after driving stock prices high at the cost of retail investors' interests.

He also urged firms to pay dividends to their investors, saying authorities will "act hard" against those who fail to do so without justified reasons.

He reiterated that the CSRC remained committed to protecting the rights and interests of retail investors, who dominate China's stock market.

China currently has over 3,100 listed companies, with a combined market value exceeding 50 trillion yuan ($7.25 trillion).

Listed firms should play an active role in the implementation of national strategies and avoid blind expansion into non-core business, Liu told the meeting.

He stressed good corporate governance and full information disclosure, saying credit records should be built for company directors and management.

BACK TO THE TOP
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US