• CHI CSRC issued opinions on supervision of securities firms engaging in investment banking business under the registration system, to improve their intermediary roles.
• Aims to address problems such as poor internal controls and corporate governance.

Opinions

• Clarifies standards and scope of supervision responsibilities by intermediaries, and focuses on solving the problems of what to supervise and how to supervise.
• Strengthen construction of investment banking standards, improve investment banking supervision on information disclosure, due diligence, on-site inspections, etc.
• Conduct special inspections on securities firms with high project withdrawal rates, high corporate bond default rates, poor evaluations, and problems reported by market.
• Improve checks and balances of internal control department, incentive mechanisms.
• Corresponding arrangements have been made such as accountability and self-supervision of regulatory agencies, and technological tools to enhance supervision.

Effectiveness

• Opinions shall come into force on the date of promulgation.