China is tightening the screws on new domestic stock offerings, laying out some of the harshest rules, checks and penalties yet to crack down on fake accounting, as a newly appointed regulator dubbed the “broker butcher” strives to weed out malfeasance and instill financial discipline in the capital market.
The government will control the quality of declarations in companies seeking to raise capital from the public, according to a statement released by the China Securities Regulatory Commission (CSRC) in Beijing on Friday. It will strictly prohibit the “blind pursuit of initial public offerings (IPOs) and the raising of excessive financing for profit,” it added.
Authorities will probe financial fraud, false statements, whitewashing and other types of behaviour to crack down on accounting shenanigans, it said. In other measures, it will impose a regular on-site supervision mechanism, conduct random checks to ensure compliance,…
