China issues draft regulation on brokers

A draft regulation by the China Securities Regulatory Commission would require fund companies to be more transparent in releasing information, state media reported. The government called the regulation part of an effort to promote the healthy development of the stock market. Starting next year, information on stock-oriented funds, such as their periodic results, would have to be publicized on websites according to a standard format. This information would make it easier to appraise the management of fund companies. Also, a new regulation on securities brokers would prohibit them from spreading false or misleading information, or from tempting customers to make unnecessary deals. Nor could they make agreements on sharing investment proceeds with customers, or promise gains or compensation for losses.