In the News: Goldman Sachs-CSRC Settlement; First Sci-Tech Board Funds Approved; and Drug Administration Law Under Review

April 29, 2019 | BY

Marilyn Romero

The CSRC has agreed its first administrative settlement with Goldman Sachs and Gao Hua Securities; seven themed funds were approved for Shanghai's new Sci-Tech Board; and the National People's Congress is reviewing measures to tighten up the production and sale of drugs.

Goldman Sachs

CSRC agrees first administrative settlement with Goldman Sachs

The China Securities Regulatory Commission, or CSRC, has agreed to settle an internal control case against U.S. investment bank Goldman Sachs and its Chinese partner Gao Hua Securities for Rmb150 million, or $22.31 million. The settlement is the first administrative settlement reached in China's capital market since the CSRC introduced a trial of the procedure in 2015. As well as paying the settlement fee, Goldman Sachs and Gao Hua Securities have also agreed to enhance their internal governance as part of the deal. The settlement is in respect of the CSRC's allegation that Goldman Sachs and Gao Hua Securities' trades of shares and stock index futures breached internal control regulations from October 2013 to July 2015. The alleged breach was uncovered in a 2016 inspection by the CSRC.

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]