The authorities have issued a series of measures
recently in a bid to avoid turbulent fluctuation in the red-hot stock
market and protect investor's interests.
A futures investor protection fund will start functioning on August 1,
according to a joint release by the China Securities Regulatory Commission and
the Ministry of Finance yesterday.
The new protection fund, as described by the Temporary Administration Method
on Futures Investor Protection Fund, will step in when there is a shortage in
deposit margin caused by illegal conducts or ineffective risk control by a
The fund will compensate the loss in the deposit margin that can't be paid
back. For the part of below 100,000 yuan, it will pay in full amount to
individual and institutional investors; for the part of over 100,000 yuan, it
will pay 90 percent to individuals while 80 percent to institutions.
The Shenzhen Stock Exchange also issued a rule today governing its small- and
medium-sized enterprise (SME) board. According to the Guidance of Conducts by
Controlling Shareholders and Actual Controlling Persons of Companies Listed on
SME Board, a controlling shareholder or actual controlling person is required to
formally disclose his intention of selling shares.
The guidance, analysts believe, may prevent controlling shareholders and
actual controlling persons from insider trading, price manipulation or abusing
the controlling rights to make equity transactions on unfair basis.
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