The CSRC issued guidance on capital-market support for a new China property
market development model and said it will implement the General Office of the
CPC Central Committee and General Office of the State Council’s opinion to
strictly combat securities violations. Regulators will prevent and crack down on
fraudulent issuance, false information disclosure, and misappropriation of
raised funds by real-estate securities issuers; increase penalties for systemic
or organized fraud; and step up enforcement against third-party collusion and
intermediary misconduct by sponsors, underwriters and accounting firms. The CSRC
said it will apply a zero-tolerance approach to financial fraud and punish cases
that are egregious, have major market impact or create significant risk strictly
in accordance with law.
