China securities regulator to step up inspection of OTC equity markets

[BEIJING] China's securities regulator said on Friday that it would step up supervision of regional over-the-counter equity markets for possible illegal activities.

China Securities Regulatory Commission (CSRC) has found that some companies illegally sold shares to investors, and promised fixed returns, claiming that they would soon be traded on OTC exchanges, according to a statement posted on CSRC's official microblog.

CSRC said it has asked local governments to help crack down on such illegal activities.

Separately, Deng Ge, a CSRC spokesman told a press conference in Beijing that the watchdog has completed spot checks on bond issuance businesses.

REUTERS