Bei Jing Shang Bao·2025-10-14 12:45Core Viewpoint - The recent trend of brokerage firms and public funds in China canceling their supervisory boards is closely related to regulatory requirements and aims to optimize corporate governance structures and improve operational efficiency [1][6][7] Group 1: Industry Movement - On October 13, China International Capital Corporation (CICC) and Shenwan Hongyuan announced they would no longer establish supervisory boards, transferring the responsibilities to the audit committee of the board of directors [4][5] - Since September, several other brokerages, including Dongxing Securities and Guosen Securities, have also announced similar cancellations of supervisory boards [5][6] - Public fund institutions like Huaxia Fund and Founder Fubon Fund have followed suit, indicating a broader industry trend [5][6] Group 2: Regulatory Context - The changes align with the new Company Law and related regulations, which require firms to clarify their internal supervisory structures by January 1, 2026 [7][8] - The new regulations aim to simplify and strengthen internal supervision mechanisms to enhance the overall governance level of securities, funds, and futures institutions [7][8] Group 3: Benefits of the Change - The cancellation of supervisory boards is expected to centralize and enhance the efficiency of the company's supervisory mechanisms, reduce management layers, and accelerate decision-making processes [6][8] - The audit committee, typically composed of independent directors, is seen as more capable of effective oversight compared to traditional supervisory boards [7][8] - This shift emphasizes the importance of transparency and accountability in modern corporate governance, with the audit committee directly reporting to the board of directors [7][8]