Intermediaries including accountants and securities and legal firms must not cooperate with companies in fraudulent practices, China’s State Council says in statement.
- Brokerage companies should not increase fee ratio based on the IPO size
- Local governments should not reward company or intermediaries for IPO issuance
- Intermediaries also must not charge fees beyond what is agreed in contracts
- Local governments must not reward issuers or intermediaries based on the results of public issuance and listing of stocks
- NOTE:
China to Tighten Regulation of IPO Intermediaries to Curb Fraud
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