BIZCHINA / News |
Futures investor protection fund to start functioningBy Li Zengxin (chinadaily.com.cn)Updated: 2007-05-18 16:22 The authorities have issued a series of measures recently in a bid to avoid turbulent fluctuation in the red-hot stock market and protect investor's interests. A new investor protection fund will start functioning on August 1, according to a joint release by the China Securities Regulatory Commission and the Ministry of Finance yesterday. The new protection fund, as described by the Temporary Administration Method on Futures Investor Protection Fund, will step in when there is a shortage in deposit margin caused by illegal conducts or ineffective risk control by a futures brokerage. The fund will compensate the loss in the deposit margin that can't be paid back. For the part of below 100,000 yuan, it will pay in full amount to individual and institutional investors; for the part of over 100,000 yuan, it will pay 90 percent to individuals while 80 percent to institutions. The Shenzhen Stock Exchange also issued a rule today governing its small- and medium-sized enterprise (SME) board. According to the Guidance of Conducts by Controlling Shareholders and Actual Controlling Persons of Companies Listed on SME Board, a controlling shareholder or actual controlling person is required to formally disclose his intention of selling shares. The guidance, analysts believe, may prevent controlling shareholders and actual controlling persons from insider trading, price manipulation or abusing the controlling rights to make equity transactions on unfair basis. (For more biz stories, please visit Industry Updates) |
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