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The new board is a key pillar of plans to build Shanghai into one of the world’s top financial centres by next year. Photo: Xinhua

CICC sponsors receive slap on wrist from watchdog for rule violation while advising tech board listing applicant

  • It is the first case of an investment bank being punished for breaching rules when representing companies seeking to list on China’s new board

Two investment bankers from China International Capital Corp have received a warning from the securities watchdog after making changes to the sales prospectus of a company they were advising on its listing on the new technology board.

The China Securities Regulatory Commission meted out the administrative punishment to Wan Jiuqing and Mo Peng after the Shanghai Stock Exchange spotted the case, the regulator said on its official microblog on Tuesday night.

Shanghai’s new tech board vital to China’s global financial ambitions, says top official

The two sponsors from CICC altered data and content linked to operating data, technology and management analysis in the prospectus of Traffic Control Technology without notifying the exchange of the changes or reporting them to the company’s compliance department, the Shanghai Stock Exchange said in a statement on its website on the same day. CICC received a warning letter from the bourse and was urged to strengthen its oversight of sponsors, the statement said.

It is the first case of an investment bank being punished for breaching rules when representing companies seeking to list on China’s new board, which was first announced by President Xi Jinping in November to host the nation’s technology companies.

Adopting a registration-based system in vetting applications, the exchange will be more focused on the authenticity of information disclosures instead of judging the company’s growth outlook or profitability.

Traffic Control, a Beijing-based manufacturer of signal systems for metro rail transport networks, is aiming to sell no more than 40 million shares. The proceeds will be used to fund projects including construction of a hi-tech industrial park and a technology upgrade worth 557.9 million yuan (US$80.8 million), according to the company’s prospectus.

At present, the Shanghai exchange is dealing with listing applications from 110 companies.

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