Chinese lawmakers have called for better protection of retail investors in the stock market while discussing an amendment to the Law on Securities on Wednesday.
SEO in China is Changing
The Standing Committee of the National People’s Congress (NPC) weighs a revision requiring more transparent information disclosure system.
According to the draft, tabled for first reading, issuers must disclose information to all investors at the same time and strictly forbidden to disclose information to any organization or individual in advance.
The majority of investors in the Chinese stock market are individuals, many of which take a bet on fluctuations in stock prices rather than making long-term investments, said He Yicheng, a member of the Standing Committee of the APN.
manipulate the stock market is crucial
Prevent dealers to manipulate the stock market is crucial, he said, and new provisions in the amendment to protect their interests.
Another change is to eliminate much of the red tape surrounding share issues. A system of registration of the share issue to replace the current system and the review committee of the Securities Regulatory Commission would be dissolved.
Registration will enhance the role of market pricing, said Wu Xiaoling, deputy director of the Committee on Economic and Financial Affairs of the NPC.
The draft amendment establishes a multi-level capital market, to promote innovation in securities and to better protect investors. It increases the range of securities regulated by law, stocks and corporate bonds at present to equities, bonds, certificates and other evidence identified by the State Council.
Issuing investment funds and trade securities backed, listing and trading of government bonds, and securities were also addressed in the amendment.
A Chinese manufacturer supply equipment
A Chinese manufacturer supply equipment became the first public company to default on a bond payment in modern China, state media said on Wednesday that the government is taking a more hands-off approach.
Baoding Tianwei Group Co., Ltd. said in a filing Tuesday with the Shanghai Clearing House he failed to make the payment of the coupon of this year is 85.5 million yuan ($ 13.8 million) on a domestic issue because of the same day.
The power transformer manufacturer is a subsidiary of China’s largest manufacturer of defense equipment South Industries Group Corporation, which is owned and managed by the central government directly.
The event marks the first time a state-owned enterprise (SOE) has breached an obligation onshore, the Beijing News reported Wednesday.
Chinese authorities in the past intervened to ensure that debt holders in most enterprises failing paid to avoid sparks social unrest – a government priority.
But executives have promised to let the market play a greater role as they seek to transform the growth model of the country, and Premier Li Keqiang reported that Beijing was willing to accept certain defaults in debt, say individual cases are “difficult to avoid” being economic restructuring.
“The company has made huge losses in 2014,” BTW Group, said in the filing, adding that he has lost 10.1 billion yuan last year partly because of the poor performance of its new sector energy.
“The asset-liability ratio has increased and our financing capacity decreased with dry up funds. We have not been able to raise the money to pay interest despite efforts in various ways.”seo
Fitch Ratings noted Wednesday in a credit event has indicated that public companies “are no longer safe” domestic bond default, and Beijing might allow more failures occur to “serve the government’s reform program “.
But he added: “The government is likely to maintain a cautious stance on the defects of large currency values, those involving large companies in strategic sectors, and / or those who injures a large number of small short-term investors. “source http://www.chinadaily.com.cn/
first firm in China to an obligation internal fault
Chaori solar company last year became the first firm in China to an obligation internal fault of the company after it was unable to make interest payments in its own 89.8 million yuan. Several months later, he went through a restructuring. see nice photo
This month, live coverage technology company said it could not meet a debt repayment of 241 million yuan, making it the first in the country to default on the primary corporate bond .
Monday and developer Kaisa Group Holding has confirmed that he did not have to pay interest on its debt in US currency. It was the first developer from China to miss a foreign bond repayment.
Analysts have previously said these defects could SEO benefit from the market over the long term by raising awareness of the risks and make the most selective investors. source http://news.asiaone.com/