BEIJING, Sept 17: China’s securities regulator said on Monday it was setting up a panel to scrutinise listed firms’ merger and acquisition activities, as part of efforts to create a more transparent and efficient market.

The China Securities Regulatory Commission (CSRC) said it had launched a 25-member commission to review important, large-scale share sales or purchases by listed companies.

Insider trading and price manipulation are on the rise as China’s share market races ahead, posing a stiff challenge to the authorities, the securities regulator said earlier this month.

China’s stock market has more than quadrupled in value since the beginning of last year.

CSRC said all publicly listed firms that intend to sell or buy assets with a value equal to more than half of their own assets in the latest accounting year, will have to submit their plans to the panel for approval if a company is selling or acquiring assets which generate an annual income equivalent to more than half of its total operating revenue in the most recent accounting year, it also needs the nod from the new commission.

“We will further improve quality and transparency of our work,” the CSRC said.

The regulator also said all officials and agency staff involved in deals should not leak information that could be used for share price manipulation and insider trading, but said only that they would be dealt with according to the law.

Listed firms are required to disclose their information in a timely manner and give equal access to all investors, but analysts say current punishments for offenders are too mild to be a deterrent, especially when stock prices are climbing fast.

—Reuters