CSAC Proposes Code of Conduct for Sponsors to Detail Prohibited Equity Investments

The Securities Association of China (SAC) is soliciting industry feedback on the 'Draft Code of Professional Conduct for Sponsor Representatives.' The draft outlines basic professional requirements, strictly prohibiting reliance on AI tools to replace professional judgment and forbidding a 'sign without guarantee' approach. It integrates integrity standards across all business stages—from project acquisition and execution to issuance underwriting and ongoing supervision—while refining specific prohibitions against improper benefit transfer and investment. The document details scenarios for prohibited equity investments throughout the entire sponsorship process, covering pre-investment before project initiation and post-termination retrospective benefit arrangements, and strengthens conflict-of-interest avoidance and reporting obligations.