In a statement released on Monday, the CSRC announced that Mainland companies wishing to IPO will have to conform to raft of new measures concerning their profitability, the independence of the listed company with regard to its largest shareholder and limitations on the amount of funds they can raise.
Ironically, some of China's most high profile and profitable firms, such as Sohu, Sina and Netease would have had no chance of listing under the new regulations.
The regulations will continue to put pressure on companies to improve their corporate governance, though personal liability does already exist for companies' legal representatives, comments Walker Wallace, a listings specialist at O'Melveny and Myers' Shanghai...
