Finance
China regulatory chief’s appointment indicates tightening, reforms on cards
The Chinese securities watchdog’s new head, “Broker butcher” Wu Qing, has lost no time in tackling the turmoil that has rocked the country’s stock markets, after it hit five-year lows this month, unveiling a slew of proposals aimed at reviving market confidence.
The China Securities Regulatory Commission (CSRC) said late on Monday that its newly-appointed chairman Wu Qing led a host of meetings immediately after the Lunar New Year holiday to discuss topics around regulating and preventing risks in the country’s capital markets, as well as promoting their “high-quality growth”.
Wu Qing, a veteran official with experiences across regulators and exchanges, earned his moniker after he cracked down on brokers for regulation breaches during his time as director of risk management office at CSRC in 2005-2009.
He then handled asset management companies’ illegal trading cases as director of the fund department. His background contrasts with that of previous CSRC chairmen who were mostly SOE banking veterans.
The post-holiday meeting was attended by a wide range of participants including academics, officials from listed companies, privately-owned companies that are preparing to go public, brokerage firms, private equity firms, financial and legal advisory firms and foreign-owned companies.
The meeting proposed tightening the vetting process for IPOs, greater regulatory scrutiny of listed companies, and stricter weeding out of unqualified candidates. This will help to “fundamentally improve” the quality of public companies and generate better investment returns, a post-meeting statement said. The healthy development of China’s capital markets is of crucial importance to investors, it said, reflecting the issue of investor confidence.
China IPO volume dives after regulator engineers offering drought to boost markets
China IPO volume dives after regulator engineers offering drought to boost markets
The watchdog also vowed to standardise transactions in various asset classes, in a bid to improve the fairness of the trading system. It also proposed to develop the country’s investment institutions and inject more medium and long-term capital into the stock markets.
“The capital market has wide implications, and the more complex and severe the situation is, the more open we should heed advice and pool wisdom,” the CSRC said in the statement.
“The CSRC will treat all feedback, suggestions and criticism with seriousness, and make sure to execute anything that has proven to be feasible. For those that cannot be executed right away, we will make sure to communicate and respond to the market concerns in time. We will join forces to foster the healthy development of the capital markets.”
Wu, a banking and regulatory veteran with a PhD in economics, was appointed the chairman and party chief of the CSRC on February 7, replacing Yi Huiman after he failed to end a rout in the country’s US$8 trillion stock market. The carnage saw around US$5 trillion in market value being wiped off from its peak in 2021, with piecemeal support measures providing little relief.
Before his elevation as CSRC head, Wu ran the Shanghai Stock Exchange and served as the deputy party chief of the financial centre of Shanghai. His earlier stint at CSRC saw him take charge of fund and institutional supervision, as well as risk disposal for securities companies.
“Wu is likely to continue to enhance regulatory tightening in capital markets and the securities industry, considering his experience as well as the key tone of the Central Financial Conference in November 2023,” said Jefferies analysts in a note.
Wu has already indicated he means business. Two days after his appointment, the CSRC imposed a 4 million yuan (US$555,748) fine on S2C Ltd, a Shanghai-based semiconductor company, for inflating its earnings in its listing application. On the same day, the securities watchdog also fined employees at China Merchant Securities a total of 81.2 million yuan for illegal stock trading.
“We think this new appointment suggests China intends to strengthen supervision and crackdown on illegal activities in the capital markets,” said Everbright Securities in a note. “This aligns with CSRC’s 2024 work conference, which prioritised investor-oriented principles and risk prevention. Moreover, we expect Wu to be tasked with further financial reforms and opening up in Shanghai as well as financial support for sci-tech innovation, where the Star Market will continue to be the place for pilot measures.”
Finance
Las Cruces finance director gets national honor for ‘exceptional contributions’
EL PASO, Texas (KTSM) — The City of Las Cruces’ finance director has received a national honor recognizing “exceptional contributions to public finance and local government service,” the City said.
Finance Director Lesley Doyle was selected by the Government Finance Officers Association (GFOA) to receive the organization’s “Recognition for Outstanding Public Service.”
The award recognizes Doyle’s leadership during a critical financial period for the City.
She stepped into the role of finance director as the City’s FY25 audit identified a projected beginning balance shortfall of more than $10 million in a community of nearly 120,000 residents, the City said.
Doyle led a coordinated effort to communicate the financial situation clearly to City departments, executive leadership, and the City Council, while working with the budget team to close the gap without reducing essential services.
Josie Trevino, assistant finance director, credited Doyle with building a culture of trust and collaboration between the Finance Department and other City departments from the beginning of her tenure.
Doyle came to municipal government after a career in public education, transitioning from a school district into City finance leadership.
“In her first year, she met the challenge with confidence, emphasizing open communication, transparency, and proactive problem-solving. Her leadership has helped strengthen relationships across the organization while fostering a positive and supportive workplace culture within the Finance Department,” the City of Las Cruces said.
“The balance of technical skill and genuine care for people is what makes Lesley’s leadership unique,” Trevino said.
The GFOA has published Doyle’s recognition on its website, and her story will also be highlighted during the upcoming GFOA newsletter and highlighted at the annual GFOA conference.
Finance
Former top Treasury adviser warns that HMRC plans to track personal finances with AI
A former senior Treasury adviser to Gordon Brown has warned that HMRC is on the cusp of using artificial intelligence to track people’s and businesses income and expenditure without them knowing.
Dr Chris Wales, who was a member of Mr Brown’s Council of Economic Advisers for more than six years, has sounded the alarm while launching a chilling book on the conduct of the Spanish tax authority, Agencia Tributaria.
He is set to join former Labour Treasury minister Baroness Dawn Primarolo at an event next week flagging up how the Spanish model of dealing with tax evasion is about to arrive in the UK suggesting that the door is opening for a “surveillance state.”
In a preview of the future, Dr Wales has claimed that confidentiality in personal life – not just finances – “will simply go out of the window” and asks whether there are adequate safeguards in the UK to prevent HMRC from emulating its Spanish counterpart.
He said: “From 1 January, every single invoice will go through the tax agency in Spain. The Inspector can already obtain all your utility bills and will soon find out which clinic and pharmacy you use and what you buy there, which restaurants you eat at, where you purchase wine and groceries, what kind of car you have, how far you drive and where you park, what flights you take and which hotels you use. Information security? A thing of the past.”
He went on: “I am far from being a libertarian, but I see great danger in the direction in which tax authority powers are going, particularly because the process doesn’t seem to involve our active consent. There is little parliamentary debate about it. In Spain it is simply out of control. In the UK, let’s see.”
Highlighting the CONNECT AI program already used by HMRC in the UK, Dr Wales claimed that the UK is now close to following Spain’s lead.
He said: “HMRC has been using sophisticated information technology for years including an AI system called CONNECT which, as early as 2023, was said to contain more than 55 billion taxpayer-related data items.
“It will be much bigger today with these billions of pieces of information about taxpayers capable of being sorted quickly by AI.”
Dr Wales, who is now senior research adviser at International Centre for Tax and Development, added that HMRC also declines to say what algorithms it uses, under the pretext that if you publish them people will “game the system”, a claim that he suggests does not stand up to scrutiny.
“The system is understood to be used to target evasion. For tax authorities, everyone is a potential tax evader. This means that they believe they have a legitimate reason to collect data about all of us,” he said.
Finance
Boyle Heights warehouse fire: Where neighbors, victims can seek financial assistance
More than two weeks after a fire broke out inside the Lineage warehouse in Boyle Heights, many neighbors have received N95 masks and air purified while mobile health clinics are set up in their area.
But some neighbors said the massive fire that sent toxic fume into the air and created a horrendous stench of rotting food has cost them out of pocket.
Neighbors said they missed days of work while spending extra money on property cleanup. One woman said she spent hundreds of dollars on air purified before they became more widely distributed.
Lineage, the company that operates the burned warehouse, donated $2 million to the California Community Foundation (CCF) so the money can be distributed to the community. The organization said it’s split the money between different organizations.
At least 10 of them are listed as providing financial assistance.
The Boyle Heights Chamber of Commerce said it’s offering small business grants funded, in part, by the group, Inclusive Action for the City.
“We’re hoping that for brick and mortars: it would be up to $3,000. And then for our vendors, it would be up to $1,000,” Miriam Rodriguez with the Boyle Heights Chamber of Commerce said, adding the application is “very straightforward.” “It’s intentionally made that way so that there’s not a lot of requirements. We’re not asking for legal status. We’re not asking for pages of documentation.”
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