Companies issuing new shares must disclose risks that relate to the financial status of their parents, following fresh regulations brought in by the China Securities Regulatory Commission.
The regulations, designed to better protect the interests of minority shareholders, apply to companies whose controlling shareholders have debts of at least Yn200m and debt-to-asset ratios of more than 70 per cent.
The Hong Kong Society of Accountants said the new regulations would improve corporate governance on the mainland and suggested that the SAR should consider introducing similar rules.
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