China Intensifies Anti-Corruption Efforts: Increases Ban Duration on Ex-Regulators Investing in Stock Offerings

China is set to impose a ban of up to 10 years on former regulators from investing in new stock releases. This move is a component of a broader effort to curb corruption and boost waning investor trust in China's US$8 trillion equity market.

China has imposed stricter regulations regarding the waiting period for former employees of the stock market regulator before they can participate in new stock offerings. This is a part of the country's intensified efforts to combat corruption.

The ban for those in intermediate roles will be lengthened to five years from the previous three, while the restriction for regular employees will be amplified to four years, up from two, as stated. The regulation was released following a fortnight of public feedback during April and May, and is set to be implemented the coming month.

This shift is a piece of a broader campaign against dishonest practices in the financial sector, aimed at strengthening the dwindling trust of investors in China's $8 trillion equity market. This intense examination has triggered probes into numerous high-ranking officers from the Shanghai Stock Exchange and branches of the CSRC.

"The CRSC is committed to rigidly enforcing regulations concerning outgoing employees, while also enhancing its role in oversight and improving collaboration with disciplinary inspection departments," the regulator stated. "Should any evidence suggest a breach of laws or regulations, the individuals involved will be referred to the appropriate authorities, ensuring transparency and fairness in the regulation of stock offerings."