SZ Stock Exchange sets up supervision system on brokerage

The Shenzhen Stock Exchange unveiled yesterday that it has set up an internal information-disclosure system to supervise brokerage executives and to strengthen corporate governance toward brokerages. The bourse said earlier last year that an internal disciplinary committee will be established to supervise brokerage executives and conduct punishments when needed.

Under the new internal information-disclosure system, members of Shenzhen Stock Exchange will be required to release information through an internal online system. Through a punishment and award system, the internal information-disclosure system will be able to halt irregularities in the stock market and to prepare the market for foreign peers.

The committee, said the stock bourse, will be constituted with experts from its listed members' management and legal departments. Meetings will be held regularly to examine brokers' activities.

Recently, brokers in China are classified into different tiers by China Securities Regulatory Commission for supervision. Those in lower tiers will be required to pay more of their revenue to a securities investment protection fund.