(Yicai) July 25 -- China is targeting the personal reputation of initial public offering or refinancing sponsor representatives to increase the scrutiny of application review and the transparency of failed fundraisers.

The Securities Association of China, a self-regulating industry organization, suggests revising the rules of brokerages' sponsor business, seeking feedback by July 29. It proposes that sponsor representatives would need to mention failed IPOs or projects that they were responsible for in their public curriculum vitae. Moreover, representatives whose qualifications are suspended would be given a new category in a public list to share their status.

Adding this information would make individual representatives more accountable, an employee of a brokerage said to Yicai. This would bring pressure on those who have had many projects canceled and force them to rigorously inspect project quality, the source added.

As of July 23, more than 330 IPOs and 94 refinancing projects have been terminated in China this year, according to statistics from Wind Information. Each such project tends to have at least two sponsor representatives so the new rule would affect hundreds of people.

Since the beginning of this year, some 71 sponsor representatives were punished as of June 23, based on data from the SAC. Among them, 39 were punished for IPOs, and over 10 of them had more than one violation. Four people got their qualifications suspended due to regulatory breaches.

Refining the rules and making information more open and transparent would enable companies that seek funding to know the track record of each sponsor better while urging industry professionals to enhance the quality of services, the brokerage insider added.

Editors: Liao Shumin, Emmi Laine