China to intensify punishment on credit defaulters on sci-tech innovation board
China has released a guideline to underline information disclosure and strengthen sanctions on credit defaulters on the newly launched science and technology innovation board.
The country will toughen examination on companies applying to be listed on the new board and expose credit defaulters, according to the guideline by the China Securities Regulatory Commission (CSRC).
Meanwhile, companies that have been blacklisted by other government departments or in other spheres will be singled out in the examination procedures.
Under the guideline, credit defaulters, including those registering with false information or violating the laws and regulations of information disclosure, will be placed on a blacklist implemented in various authorities and departments.
The blacklist will restrict them from applying for projects of fiscal funds, serving as legal representatives and chief executives of their companies, receiving honorary titles and prizes, and taking planes or trains.
The intensified punishment on dishonest behaviors will help create a better market environment for the sci-tech innovation board, the CSRC said.
The sci-tech innovation board, inaugurated on June 13, is designed to focus on companies in the high-tech and strategic emerging sectors, such as new-generation information technology, advanced equipment, new materials, new energy, energy saving and environmental protection and biomedicine.
It will ease the listing criteria, such as allowing firms that have yet to make a profit to list, but they will adopt higher requirements for information disclosure.