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Harry Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Richard L. Cassin Editor at Large

Elizabeth K. Spahn Editor Emeritus 

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

Aarti Maharaj Contributing Editor


FCPA Blog Daily News

« Mini survey result: facilitating payments | Main | Plea agreements won't play a big role in U.K. enforcement »
Tuesday
Oct022012

China regulators probe IPO 'hush money'

The China Securities Regulatory Commission is reportedly looking into illicit deals between companies seeking an IPO and media organizations.
 
A general manager of a finance company said he knew of companies that paid as much as $3.2 million to prevent media agencies from going public with negative information.  
 
As more media organizations reportedly catch on to the scheme and start soliciting bribes, companies' IPO-related costs are being pushed higher and higher.
 
A staffer at a financial daily said his managers gave instructions to stop publishing "supervisory analyses" of companies about to launch an IPO, as the practice presented the appearance of "indirect extortion."  
      
Source: Caixin Net (财新网)

______________

Benjamin Kessler is a contributing editor of the FCPA Blog and the editor of the China Anti-Corruption Handbook. This is the final week to order the handbook at 33% off and receive an annual subscription to China Compliance Digest at no extra charge.

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