CSRC tightens rules
The China Securities Regulatory Commission has required listed banks to disclose more details and risk exposures in their regular financial reports amid concerns that the global financial turmoil could hurt mainland lenders.
Under the new rules, lenders must disclose the face values, interest rates and maturities of the bonds they held as well as the provisions for their investments, the CSRC said yesterday. The rules will become effective from September 1.
The notice came after several state-owned lenders made provisions and write-downs on their holdings in US subprime-related securities.
Many listed lenders have also invested in bonds issued or guaranteed by the two troubled US mortgage finance giants, Fannie Mae and Freddie Mac, raising concerns that they may suffer considerable investment losses if the bonds are defaulted.
'It's good for investors as they can have more information to assess the strength of banks,' said Ivan Li, an analyst at Kim Eng Securities.
