China limits impact of sponsor probes

摘要

China has adjusted vetting rules on share sales and mergers and acquisitions, easing the fallout from its crackdown on due-diligence failings. The China Securities Regulatory Commission will no longer suspend applications related to IPOs, follow-on offerings or M&As from applicants whose sponsors are under investigation, the regulator said. The move comes amid an increasing scrutiny of intermediary agencies which has seen several securities firms sanctioned in recent months. Under the old rules, an investigation into the sponsor of a transaction would automatically put on hold all of the deals it sponsored.