The China Securities Regulatory Commission and two other state departments jointly drafted the guidelines regulating the services provided by intermediary institutions for initial public offering, stipulating securities companies and accounting firms are not allowed to use the IPO results of a company to be listed as a condition for charging fees.

As important components of the capital market, the business quality of securities and accounting companies is related to the quality of listed companies. In order to ensure the independence of the IPO process, it is essential that intermediary institutions strictly perform their duties of professional check and verification, so as to improve the quality of listed companies, maintain market order and protect the legitimate rights and interests of investors.

However, in recent years, some intermediaries have linked the fee they charge to the results of a company's stock offering. Driven by interests, certain intermediaries turned a blind eye to the problems existing in stock issuing companies, and even took the initiative to help the latter cover up obvious malpractices and whitewash performance to meet listing conditions, making them accomplices of financial fraud and fraudulent issuance, seriously damaging investors' rights and interests and denting the credibility of the market.

The independence of intermediary institutions is the basis for ensuring their objectivity and impartiality. That explains why the draft guidelines promulgated by the three departments focus on regulating the charges of intermediary services, strengthening supervision, and prompting intermediary fees to be decoupled from the public offering and listing results of stocks, which will enhance the independence and objectivity of intermediary services.

The guidelines also stipulate that securities companies engaged in sponsor business and accounting firms performing audits can charge service fees in stages.

This will help intermediaries establish more stable income expectations and ensure their corresponding efforts are rewarded, which will encourage intermediaries to attach more importance to their service quality, and dare to press the "pause button" on companies that do not meet listing requirements.

At the end of July, the CSRC said it will promote the further implementation of the stock issuance registration system to cultivate high-quality listed companies. In this context, as the gatekeeper of the capital market, intermediaries face higher requirements and greater responsibilities.

The introduction of the guidelines is evidence of China's regulatory authorities' firm determination to promote intermediary institutions to improve service quality. Intermediary institutions should further improve their internal governance structure, explore new charging models and reasonable charging standards, establish an effective risk control system as soon as possible, and improve their self-restraint capabilities and self-regulation, to contribute more to the healthy development of the country's capital market.