The Shenzhen and Shanghai stock exchanges have published draft rules that will enable tougher punishment for fraud in the securities market, Caixin Global reports.
The aim of the new measures is to “severely crack down on and curb share issuance fraud, unlawful information disclosure, and other illegal and irregular activities by listed companies that seriously undermine order in the securities market”, the Shenzhen stock exchange said on Friday.
According to the changes, companies will be more easily delisted for transgressions already stipulated in existing regulation. Examples of such activity include providing false information in the run up to public offerings, and backdoor listings in listed shell companies.