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China's top stock regulator reiterated Wednesday that Chinese securities companies are not allowed to participate in venture capital investment.
The China Securities Regulatory Commission (CSRC) issued a circular recently, saying that current involvement in venture capital investment by securities firms in either direct or indirect ways does not comply with China's existing laws and regulations.
The commission demands that securities firms immediately stop futures brokering business, and complete the clear-up within six months of the date the circular was issued.
"Those who refuse to abide by rules and regulations will be subject to punishment," a spokesman with the commission warned.
Meanwhile, the top regulator is also tightening supervision over futures companies. Fifteen futures brokerages were closed down Tuesday for failing to meet designated standards for resuming business after rectification. The commission retrieved licenses for futures brokering from these companies.
During the past few weeks, the market watchdog has introduced a series of rules and regulations to tighten market supervision, demonstrating its determination to rebuild market order with new standards.
(Xinhua 04/18/2001)
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