SHANGHAI (Reuters) - China's securities regulator on Friday published draft rules on how fines for securities fraud offenses will be prioritised to compensate investors in civil cases, part of a broader push towards a U.S.-style system for initial public offerings.
"A sound securities civil compensation system is an important guarantee for the full implementation of the registration-based IPO system," the China Securities Regulatory Commission (CSRC) said in a statement on its website.
China has been pushing to move from its traditional IPO system, based on regulatory approvals, to a registration-based system of the type used in the United States, a shift that makes investors more responsible for their own investments.
To pave the way for that shift, China introduced rules in January to make it easier for victims of securities fraud to claim compensation, in order to stamp out corporate cheating and protect investors' interests.
The CSRC said it would work to improve the draft rules based on public feedback.