MNI China Press Digest Nov 9: CSRC, Insurance, Stock Exchanges

Highlights from Chinese press reports on Thursday:

• China Securities Regulatory Commission, the country’s top securities regulator will quicken the development of domestic “smart money” and strengthen supervision of institutions and market behaviour, said CSRC Chairman Yi Huiman at the Financial Street Forum. The CSRC will crack down on illegal fraudulent activities in finance, issuance, and market manipulation. Authorities will improve early warning mechanisms through monitoring market capital leveraging and corporate debt risks, and tracking high-frequency quantitative trading, according to Yi. (Source: Securities Times)
• China has huge potential to develop its insurance industry and will continue to optimise regulatory standards for solvency, guide its life insurance industry to reduce debt costs, and reform automobile insurance, according to Li Yunze, director of the State Administration for Financial Supervision. Li, speaking at the Financial Street Forum in Beijing, highlighted strong potential for health, family and property insurance. China will continue to open up in the future and the determination to share development opportunities with the world will not change, Li added. (Source: Securities Daily)
• The Shanghai and Shenzhen stock exchanges will tighten refinancing rules aimed at guiding resources towards high-quality companies. The exchanges will restrict refinancing of listed companies whose share price falls below their initial offer price or their net asset value. Meanwhile, listed companies with a relatively high proportion of financial investments must reduce the amount of funds raised through refinancing, and refinancing projects must be closely related to their existing main businesses. (Source: China Securities Journal)