SHANGHAI (Reuters) - China’s securities regulator has urged five brokerages to tighten compliance after an inspection of their investment banking businesses showed standards were not strict enough, the regulator said on its official microblog.
The China Securities Regulatory Commission (CSRC) found that the five companies, including Guotai Junan Securities Co (601211.SS) and Guosen Securities Co 002736.SZ, did not do an adequate job in areas such as internal risk control, due diligence and internal workflow.
The regulator also named New Times Securities, Dongguan Securities and Zhongtai Securities among the brokerages inspected.
When contacted by Reuters, Dongguan Securities declined to comment. The other brokerages could not be immediately reached for comment.
Separately, CSRC warned China’s asset managers not to break the law, and urged perpetrators to surrender themselves to the police.
Reporting by Samuel Shen and John Ruwitch; Editing by Jacqueline Wong