Regulator dismisses reports of blacklist

Investors check stock prices at a securities brokerage in Haikou, Hainan province. [Photo/China Daily]

The securities regulator on Friday dismissed reports that it had created a blacklist of 30 to 40 problematic listed companies, which it planned to delist, as it seeks to restore investor confidence through an intensified elimination of law-breaking firms.

Deng Ge, a spokesman for the China Securities Regulatory Commission, said: "Stock exchanges are responsible for the delisting of listed companies. Listed companies should operate according to the rules and regulations."

He also said that plans for the introduction of a new strategic emerging industries board in Shanghai were excluded from the country's 13th Five-Year Plan (2016-20) earlier this month because they are still at the discussion stage.

The spokesman said the government's blueprint for the next five years focuses on general trends and directions, and confirmed events, but that various details regarding the board still need to be finalized.

The securities regulator originally planned to establish the board on the Shanghai Stock Exchange to give newer companies easier access to funding.

After it emerged that any mention of its possible launch had been removed from the five-year plan, there was strong speculation its creation had been scrapped.

Analysts had also speculated there could have been a holdup in the implementation of a registration-based initial public offering system, which was planned as the basis of the new board.

Deng, however, appeared to quash those suggestions on Friday, after adding that accelerating the development of strategic emerging industries remained "a national strategy, and the CSRC pays close attention to supporting their development in the capital market".

The Shanghai Stock Exchange on Monday delisted Zhuhai Boyuan Investment Co Ltd, the first company to be ousted by the CSRC for violation of disclosure rules and fraudulent practices, including forging commercial bills and inflating assets and profit.

On Friday, mainland stocks capped a second week of gains, as consumer-staples producers rallied on improving earnings prospects, while property developers halted a three-day slide.

Kweichow Moutai Co rose to a nine-month high after China International Capital Corp said the liquor maker's earnings may beat consensus estimates this year.

Shanghai's move to tighten criteria for non-local homebuyers to help stem surging property prices was also seen as a "temporary end of negative news", according to KGI Securities Co.

The Shanghai Composite Index added 0.8 percent this week. The benchmark index rose 0.6 percent to 2,979.43 points at the close on Friday, with trading volumes slumping 19 percent below the 30-day average.