Companies considering IPOs will face greater supervision, and harsher penalties if found guilty of any wrongdoing or fraud, says an article in Beijing News (excerpts below).

There are strict regulations already in place for companies considering IPOs but they have not been fully enforced. If greater supervision results in greater enforcement then the market will benefit.

A healthy market requires regulations that can be enforced and penalties that will deter people from fraud. Of course, the greatest penalty for any financial company guilty of fraud is the loss of their reputation