NAFMII Strengthens On-site Inspection for Non-financial Enterprise Debt Financing Instruments

From late July to early August, NAFMII had conducted routine on-site inspection for six enterprises in Sichuan province, Guangdong province and Gansu province, aiming to gather accurate financial and operational information of enterprises that have debt instrument in the duration.

With the cooperation of related lead underwriters, the investigation team had gained in-depth understanding of the companies�� financial status, usage of capital raised from debt instrument and compliance situation. NAFMII team had thorough communication with companies about the problems and risks found through the inspection. For the practices that violated self-regulatory rules in the inter-bank market, NAFMII requested related companies to rectify and improve their conduct within a specified timeframe.

On-site inspection is an important approach of NAFMII to implement self-regulatory rules and regulations and protect investors�� rights and interests on behalf of its members. With this approach, NAFMII investigates the statues of issuers and urge companies to stick to their commitment. Companies and lead underwriters involved spoke highly about the inspection as an important communication platform for market players and an effective bridge between NAFMII and its members. NAFMII will continue to improve the routine on-site inspection as an important self-regulatory approach.