What’s new: The China Securities Regulatory Commission (CSRC) will issue cash rewards to whistleblowers who tipped them off about disclosure violations at five currently and formerly traded 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 are 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.
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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