TREE NEWS update: The Securities Association of China has drafted a code of conduct for sponsor representatives and is seeking industry feedback. The rules bar using AI tool outputs as a substitute for professional judgment and prohibit signing off without due diligence. They also tighten conflict-of-interest and anti-corruption requirements across the full sponsorship process, including pre-investment before project approval and retrospective benefit arrangements after termination.
China Securities Association Drafts New Conduct Rules for IPO Sponsors
The draft's most pointed provision treats AI output as a tool that cannot stand in for the sponsor's own judgment, a signal that regulators see automation creeping into gatekeeping work without a matching rise in accountability. Extending the conflict-of-interest net to pre-investment before approval and benefits after termination targets the gray zones where sponsorship economics can quietly distort diligence. Whether the industry's feedback softens those retrospective-benefit clauses is the open question.
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