Securities regulation: No more bad research in China
Securities firms will get a reputation management score from SAC, limiting their ability to provide balanced views. It looks like a step backwards for the country’s financial system.
By Rebecca Feng
China’s SAC plans to give securities firms a reputation management score
The Securities Association of China (SAC) said in August that it would assign a reputation management score to securities firms based on two criteria: the ability to guide public opinions on the market and regulations; and the ability to handle negative news about themselves.
A draft rule was distributed to leading securities houses on the mainland.
Firms are encouraged to guide public views by publishing research on market regulations or be quoted in media stories. But the devil is in the detail.