Crackdown plans set for content providers
Beijing will take civil action and impose criminal charges against Internet operators found guilty of 'disseminating falsified securities information' over the Net.
New online regulations drafted by the State Council include laws to hold Internet content providers accountable for any untrue and misleading financial and business information on their Web sites, the Shanghai Securities News report says.
The rules were initiated by the standing committee of the National People's Congress, to crack down on online fraud in China.
The new rules require Internet operators to apply for an operations licence and a business licence. Analysts said the impact of the new law on China's securities portals remained to be seen.
During the past four years, about 100 securities portals have been set up by brokerage houses and non-securities firms to provide trading information and online trading businesses in China.
The new regulations also stipulated that China's online operators take responsibility for the sales of shoddy products over the Internet and false advertisements placed on their Web sites. The draft also called for a crack down on various Internet offences and hacking that could pose threats to national security, national unity and privacy.
The rules banned intellectual property infringements by China's Internet web operators.
The new regulations also defined what Beijing claimed as 'harmful' links and information on Web sites related to pornography and cults. These would be subject to legal action, according to the draft.