Caixin
Apr 03, 2021 07:17 PM

Chinese Securities Regulator Announces Latest Round of Tipster Rewards

What’s new: The China Securities Regulatory Commission (CSRC) will issue cash rewards to whistleblowers who tipped them off about disclosure violations at five companies, it said in a statement Friday (link in Chinese).

It comes after the regulator raised (link in Chinese) the ceiling on such rewards from 300,000 yuan ($45,690) to 600,000 yuan last year.

The five cases involve two Shenzhen-listed firms — Jiangsu Sihuan Bioengineering Co. Ltd. (000518.SZ) and Ji Yao Holding Group Co. Ltd. (300108.SZ) — the delisted company Dalian Tianbao Green Foods Co. Ltd., and two companies whose shares were traded at the new over-the-counter market.

The regulator has remained tight-lipped about how many whistleblowers were involved, and what sums they would receive.

The context: The CSRC first rewarded whistleblowers for exposing securities wrongdoings in 2019 as part of a new incentive system, which was codified in the revised Chinese Securities Law put into effect in March last year.

The rewards still pale in comparison to those handed out by the U.S. Securities and Exchange Commission (SEC), such as a record $50 million (link in Chinese) to a single whistleblower last year.

The SEC does not name the companies fingered in its whistleblower reward program, which was put into effect in 2012 in the wake of the financial crisis.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

A previous version of this story incorrectly stated that two of the companies involved in the cases are currently traded on the over-the-counter market. That is incorrect. Both had previously been traded on the over-the-counter market.

Related: China Securities Regulator Rewards Whistleblowers in Three Cases

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)

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