In the News: Goldman Sachs-CSRC Settlement; First Sci-Tech Board Funds Approved; and Drug Administration Law Under Review
April 29, 2019 | BY
Marilyn RomeroThe 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.
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.
First batch of themed funds for Shanghai Sci-Tech Board approved
The first batch of seven themed funds that will be allowed to invest in stocks listed on the Nasdaq-style new Shanghai Science and Technology Innovation Board, or Sci-Tech Board, have been approved by the China Securities Regulatory Commission, or CSRC. Specifically, the CSRC has approved funds by Guangzhou-based E Fund Management; Shanghai-based China Universal Asset Management; Shenzhen-based China Southern Asset Management, Beijing-based Harvest Fund Management; ICBC Credit Suisse Asset Management; Shanghai-based Fullgoal Fund Management; and Beijing-based China Asset Management. Under the recently released regulations for listing on the new board, individual investors will not be eligible to invest directly unless they meet certain criteria, but can still invest in stocks listed on the Sci-Tech Board using such approved funds.
More from CLP: Shanghai's New Technology Board Gets off to a Strong Start;
Tighter rules for production and sales in drug law under review
The Standing Committee of the National People's Congress is currently reviewing draft revisions to the Drug Administration Law as part of China's efforts to tighten regulation over the production and sale of drugs. The proposed amendment to the Drug Administration Law more clearly identifies the responsibilities of individuals and entities which have become medicine marketing authorization holders, or MAHs, in respect of drugs' clinical and non-clinical trials, manufacturing, and sales; including the analysis, reporting and response to adverse reactions. It also calls for the ethical conduct of clinical trials; monitoring of drug prices through government authorities; and the guaranteeing of drug supplies. According to Tang Minhao, head of the Shanghai Association of Food and Drug Safety, MAHs will become the primary target of drug supervision under the new amendments.
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