China regulates intermediary services for public stock offerings

BEIJING, Jan. 15 (Xinhua) -- Chinese Premier Li Qiang has signed a State Council decree to regulate intermediary services for public stock offerings.

The decree endorsed a set of regulations aimed at improving the quality of publicly-listed companies, protecting the legitimate rights and interests of investors, and promoting the healthy and stable development of the capital market.

Effective from Feb. 15, these regulations stipulate that intermediary agencies must not aid companies in committing financial fraud, issuing deceptive offerings or breaching information disclosure rules.

Relevant regulators in the securities, finance and judiciary fields should work together closely to strengthen oversight of intermediary institutions' practices in accordance with the law and their obligations, as per the regulations.

Administrative penalties, including warnings, fines and suspensions from related activities, may be imposed on intermediary agencies and their personnel in the event of violations of the regulations.