Shanghai Exchange pledges crackdown on alleged rulebreakers

The Shanghai Stock Exchange is revising its rules on the subject of disciplinary punishments.

Xu Ming, the vice president of the Shanghai Stock Exchange (SSE), has vowed to “crackdown on alleged violations of laws and regulations on the securities market”.

He was speaking at a news briefing this week to discuss the future of regulation at the SSE.

He said that the exchange is currently revising its rules on the subject of disciplinary punishments. It is also going to try to avoid overlapped regulation that has the effect of increasing costs.

The exchange says it is also focusing on the irregular operation of corporate governance, and violations of listed companies in the disclosure of information.

He said that the SSE would investigate every case of abnormal fluctuations in the market.

SSE claims some success in advocating the payment of dividends among its listed companies. It says that 68% of SSE listed firms made plans to pay dividends in 2012, up from 59% the previous year, and that increase is partly due to the exchange’s efforts in promoting the payment of dividends and providing written guidance on the matter.