China Securities Regulatory Commission (CSRC), the watchdog of China's securities market, announced June 14 procedures to standardize investment fund operations and increase the accountability of fund managers.
Managers must submit a written commitment to the security exchange acknowledging their full responsibilities for all fund transactions, the commission said in disclosing details of its Provisions on Standardizing Securities Investment Fund Operation.
The commission emphasized that basic principles of investment theory and regulation – as well as honesty - must be applied in ongoing decision-making in fund management companies.
Securities Exchange will also monitor transactions by single investors and fund investment companies. Any abnormal activity will result in a written warning to the offender along with a possible report of the violation to the China Securities Regulatory Commission.
The China Securities Regulatory Commission earlier announced a new measure to introduce market supervision mechanisms into the application procedures for fund management companies application procedure. In its Notice on Application for Establish of Fund Management Company, the commission said it is researching a stock subscription record system to improve the current investor system.
(China.org.cn by Alex 06/19/2001)
