More than half of mainland brokerages downgraded by CSRC
Firms now likely to receive increased inspection and examination by regulators over the next year
The China Securities Regulatory Commission (CSRC), China’s top securities regulator, has downgraded more than half of the mainland’s brokerages in an annual review, the authority announced on Friday in Beijing.
“The rating reflects a company’s general condition in compliance management and risk control. It is not an assessment of its assets and credibility,” said Deng Ge, a spokesman for the CSRC.
One Beijing based brokerage analyst who asked not to be named, said that companies ranked lower by the CSRC will receive more intensive inspection and examination by regulators during operations in the next year.
Also, they will meet tougher challenges when applying to set up new businesses
The rating reflects a company’s general condition in compliance management and risk control. It is not an assessment of its assets and credibility
“The brokerage companies ranked lower in this list will also have to submit a higher proportion of their revenue into the investors’ protection fund, looked after by specialised company under the CSRC,” he added.
