CSRC issues rules for financial analysts

The China Securities Regulatory Commission (CSRC) has issued new rules governing financial advisers, the South China Morning Post reported. The rules to regulate asset-restructuring deals involving listed companies require advisers to make public apologies to investors if the profit from acquired units falls 20% below their forecasts. The regulator will issue warnings to advisers if the profits are 50% less than projected. The CSRC said in late May that companies that use acquisitions to distort earnings would be barred from launching initial public offerings. The CSRC increased its oversight of asset restructurings last year, setting up a 25-member committee to review mergers and acquisitions involving listed companies.