The China Securities Regulatory Commission: It has not yet been found that customers have concentrated a large number of short positions

Finance Associated Press on January 19, today, the China Securities Regulatory Commission held a press conference, the main person in charge of the comprehensive business department of the China Securities Regulatory Commission Zhou Xiaozhou said at the press conference on January 19 that the China Securities Regulatory Commission will further deepen the reform and opening up of the capital market in an all-round way, adhere to the three principles of the registration system reform, adhere to the information disclosure as the core, adhere to the basic structure and basic institutional arrangements of the registration system, comprehensively strengthen strict supervision in accordance with the law, and promote the deepening of the stock issuance registration system.

"The reform of the registration system itself is a process of constantly discovering, solving, and exploring and improving problems. We will closely track and analyze the implementation effect of the registration system, dynamically carry out system evaluation, listen carefully to the voice of the market, continuously optimize institutional arrangements, and promote the establishment of a more mature and stereotyped basic institutional system of the capital market, so as to better play the role of the capital market hub and better serve the overall situation of Chinese-style modernization. Zhou Xiaozhou said.

China Securities Regulatory Commission: The reform of the registration system is by no means "to move the IPO review from the CSRC to the exchange"

Zhou Xiaozhou, the main person in charge of the comprehensive business department of the China Securities Regulatory Commission, said that the reform of the registration system is a profound change from the underlying logic to the ideology and behavior, involving the whole chain of capital market entry and export, primary and secondary markets, investment and financing, legislation and law enforcement, etc., and it is by no means what others say, "the registration system is to move the IPO review from the China Securities Regulatory Commission to the exchange". "On the whole, the main institutional arrangements of the registration system have been basically finalized, the basic system of the capital market has been systematically reshaped, the market's reverence for the rule of law has become stronger, the market ecology has been continuously purified, the legitimate rights and interests of small and medium-sized investors have been more protected, and the regulatory authorities themselves have become more transparent and have stronger constraints. Zhou Xiaozhou said.

China Securities Regulatory Commission: Openness and transparency are the foundation of the credibility of the capital market

Zhou Xiaozhou, the main person in charge of the comprehensive business department of the China Securities Regulatory Commission, said: "It has been more than 9 months since the full implementation of the registration system, and the current operation of the relevant system arrangements is generally stable and orderly. Zhou Xiaozhou pointed out that regarding transparency, openness and transparency are the foundation of the credibility of the capital market. Since the reform of the registration system, the China Securities Regulatory Commission and the stock exchange have always adhered to the "open-door review" and "open-door supervision", transformed the matters that can be judged by investors in the issuance conditions under the approval system into information disclosure requirements as much as possible, comprehensively cleaned up the "pocket policy" and invisible thresholds, and disclosed all the standards, procedures and results of review and registration to the public, and actively accepted the supervision of all aspects of society. "At the same time, efforts should be made to strengthen the transparency of the whole chain of supervision and law enforcement, so that power can operate in the sun. Construct a concise and scientific rule system, and disclose the regulatory rules and audit and punishment results of issuance, listing, and institutions to the public. Zhou Xiaozhou said.

The China Securities Regulatory Commission: It has not yet been found that customers have concentrated a large number of short positions

At the press conference of the China Securities Regulatory Commission, Li Zhibin, director of the Futures Department of the China Securities Regulatory Commission, responded to the recent news that some institutions are suspected of opening large short orders on stock index futures and maliciously shorting the market. Li Zhibin said that we have paid attention to it and investigated the relevant situation. At present, the overall position of stock index futures is relatively scattered, and there is no phenomenon of customers concentrating on a large number of short positions, nor has it been found that related accounts are jointly shorting. Li Zhibin said that since futures companies do not have proprietary business, the positions of futures companies disclosed by futures exchanges are all positions of brokerage customers. After investigation, a large part of the current short position in stock index futures is the hedging position of customers. Hedging by clients is conducive to stabilizing their stock market holdings.

China Securities Regulatory Commission: The registration system is not "whoever wants to send it, and send as much as he wants"

Zhou Xiaozhou, the main person in charge of the comprehensive business department of the China Securities Regulatory Commission, said: "The implementation of the registration system is by no means a laissez-faire and a laissez-faire, but a step forward in the whole chain of supervision and law enforcement, and more strict and accurate management." Zhou Xiaozhou said that on the one hand, the registration system does not mean that the quality requirements are relaxed, but the audit is more stringent, not who wants to send it, and how much it wants. Adhere to the principle of "taking responsibility when declaring", and severely punish "breaking through with illness" and "withdrawing after investigation". "On the other hand, the implementation of the registration system must be strictly punished and the law must be strictly enforced. We adhere to 'zero tolerance' to crack down on serious violations of laws and regulations such as fraudulent issuance and financial fraud, and promote the establishment of a three-dimensional punishment and restraint system of administrative penalties, civil compensation and criminal accountability, so as to protect the legitimate rights and interests of investors." Promote the establishment of a securities class action system with Chinese characteristics and gradually normalize it, improve the systems of securities and futures administrative law enforcement party commitments, advance compensation, fraudulent issuance, and repurchase orders, and promote the implementation of relevant cases, forming a demonstration effect. Zhou Xiaozhou said.

China Securities Regulatory Commission: Resolutely prevent "one withdrawal" If the company and related parties violate laws and regulations, they must be resolutely held accountable even if they are delisted

Guo Ruiming, director of the Listing Department of the China Securities Regulatory Commission, said that the next step of the CSRC will continue to consolidate and deepen the normalized delisting mechanism. First, we will continue to unblock diversified exit channels, support the effective integration of resources through absorption and merger, and promote the improvement of the bankruptcy reorganization system. The second is to strictly implement the rules of delisting, adhere to the principle of "retreating as much as possible", and severely crack down on malicious "shell" behaviors such as financial fraud and market manipulation associated with the delisting process, so as to maintain the seriousness of the delisting system. The third is to resolutely prevent "retreating". If the company and related parties violate laws and regulations, they must be resolutely held accountable even if they are delisted; if the violations of laws and regulations cause losses to investors, they will be supported to use various compensation and relief measures stipulated in the Securities Law to protect their own rights and interests; and if the delisted company is promoted to enter the delisting sector in an orderly manner in accordance with the law, and the basic rights of investors such as the right to know and the right to trade will be protected.

China Securities Regulatory Commission: Since the new regulations on shareholding reduction, a total of nearly 2,300 controlling shareholders and actual controllers of companies in Shanghai and Shenzhen have been restricted from reducing their holdings

Guo Ruiming, director of the listing department of the China Securities Regulatory Commission, said that in general, the share reduction system in the mainland market is stricter than that in the overseas market. According to the current indicators, a total of nearly 2,300 controlling shareholders and actual controllers of companies in Shanghai and Shenzhen have been restricted from reducing their holdings. Some controlling shareholders and actual controllers also took the initiative to terminate the shareholding reduction plan. The China Securities Regulatory Commission (CSRC) promptly ordered corrections for all kinds of illegal shareholding reductions, and the relevant entities took the initiative to repurchase and hand over the price difference income to the listed companies. In addition, in order to guide more venture capital institutions to invest early and small, and promote capital formation, the China Securities Regulatory Commission issued the "Special Provisions on the Reduction of Shareholdings by Shareholders of Venture Capital Funds of Listed Companies" as early as 2018, and revised it in 2020. This policy has not changed since 2020 and will remain stable for a long time to promote a virtuous cycle of "fundraising, investment, management and withdrawal".

China Securities Regulatory Commission: The core of the delisting reform is to insist on "retreating as much as possible", and it is not that the more withdrawals, the better

Guo Ruiming, director of the Listing Department of the China Securities Regulatory Commission, expressed his views on the phenomenon of delisting, and said that we are also concerned about the view that "the delisting rate of A-shares is not high" in the market. The core of the delisting reform is to adhere to the principle of "retreating as much as possible", and at the same time retreating, it is necessary to retreat steadily, and it is not that the more withdrawals the better. He said that the delisting of overseas markets represented by the United States is mainly privatization, absorption and merger by other listed companies, and voluntary delisting, and the voluntary delisting of some markets accounts for more than 90% of the total delisting, and the proportion of real forced delisting is not high. The delisting of these companies is a market-oriented choice made by their own corporate strategic considerations. There are many companies that are forced to delist from A-shares, but the cases of restructuring and delisting and voluntary delisting are significantly fewer than those in overseas markets. According to the data, in the three years since the reform, a total of 127 companies have been delisted, of which 104 have been forcibly delisted, and the number of mandatory delistings is nearly three times that of the 10 years before the reform.

The China Securities Regulatory Commission responded to the mediation progress of the Zeda Yisheng case: 7,195 investors were compensated more than 280 million yuan

Xia Jianting, Secretary of the Party Committee and Chairman of the Investment Service Center of the China Securities Regulatory Commission, introduced the actual compensation of investors in the Zeda Yisheng case. He said that the Zeda Yisheng case is the first class action lawsuit on the Science and Technology Innovation Board, and it is also the first class action lawsuit for fraudulent issuance. The defendants agreed to pay the plaintiff investor in full according to the amount of the assessed loss, and the case was successfully mediated and concluded on December 26, 2023. 7,195 investors were compensated more than 280 million yuan, and individual investors received the highest compensation of more than 500 yuan, with an average compensation of 38,900 yuan per person. Xia Jianting said that on January 10, 2024, the Shanghai Financial Court transferred more than 280 million yuan in compensation to the registration and clearing company, and then the registration and clearing company transferred it to the investor's securities fund account, and all the compensation was completed by January 15, and the investor got the compensation in more than five months from the start of the class action.

China Securities Regulatory Commission: will promote the improvement of the legal system of the capital market from three aspects

Cheng Hehong, head of the Department of the Rule of Law Department of the China Securities Regulatory Commission, said that the China Securities Regulatory Commission will focus on the following three aspects: first, to do a good job in implementing the formulation and improvement of new laws and regulations such as the Futures and Derivatives Law, the New Company Law, and the Regulations on the Supervision and Administration of Private Investment Funds, so as to ensure that the implementation of the new legal system is consistent with the previous and subsequent work, including the revision and formulation of the measures for the supervision and administration of futures companies, the guidelines for the articles of association of listed companies, and the measures for the supervision and administration of private investment funds; Work on the formulation and improvement of administrative regulations and judicial interpretations. This includes drafting and formulating regulations on the supervision and administration of listed companies, studying and revising the regulations on the supervision and administration of securities companies, cooperating with relevant judicial organs in formulating and improving relevant judicial interpretations including insider trading and market manipulation, and so on; and third, continuing to do a good job in the daily work of enacting, revising, repealing and interpreting the rules and normative documents of the China Securities Regulatory Commission.

China Securities Regulatory Commission: Increase the supervision of the lending and lending of restricted shares, and the effect of policy implementation is in line with expectations

Shen Bing, director of the Department of Institutions of the China Securities Regulatory Commission, said that the issue of selling shares and lending securities in the previous period has aroused market concern, and in order to maintain market fairness and crack down on all kinds of improper arbitrage behaviors, the China Securities Regulatory Commission has strengthened the supervision of restricted stock lending and securities lending. Shen Bing said that in October 2023, a notice was issued to cancel the lending of securities by senior executives and core employees of listed companies through special asset management plans established by participating in strategic placements, and appropriately restricted the lending methods and proportions of other strategic investors in the early stage of listing. After the issuance of the new regulations, the China Securities Regulatory Commission (CSRC) urged securities companies to strictly implement the requirements of the new regulations by strengthening penetrating management, on-site inspections, regulatory penalties and other means. Overall, the effect of policy implementation is in line with expectations. Up to now, the balance of securities lending and borrowing has decreased by 23.4% compared with the beginning of the implementation of the new regulations, and the balance of loans by strategic investors has decreased even more, reaching 35.7%. In addition, after the issuance of the new regulations, there were new listings of senior management strategic investors, and no lending occurred in the early stage of listing, indicating that the implementation of the new regulations is good.

China Securities Regulatory Commission: Investment and financing at both ends of the overall balance of development, there is no "only pay attention to financing, do not pay attention to investment"

Shen Bing, director of the Department of Institutions of the China Securities Regulatory Commission, said that only by constantly listing new high-quality companies in the capital market can this group be kept alive and this cornerstone can be continuously consolidated.

In terms of financing, the total amount of A-share IPOs in the past five years was 2.2 trillion yuan, and the total refinancing was 3.8 trillion yuan, with a total financing of about 6 trillion yuan.

On the investment side, the total circulating market value of A-shares held by medium and long-term funds such as public funds, pensions, and insurance increased from 6.4 trillion yuan to 15.9 trillion yuan, an increase of more than 1 times, and the proportion of shares held increased from 17% to 23%. Equity funds increased from 2.3 trillion yuan to 7 trillion yuan, and the proportion of public funds increased from 18% to 26%. The circulating market value of A-shares held by northbound funds increased from 0.7 trillion yuan to 2 trillion yuan. The market value of A-shares held by individual investors increased from 10.8 trillion yuan to 22.1 trillion yuan.

At the same time, investor returns continued to strengthen. In the past five years, the cumulative dividend of A-shares was 8.4 trillion yuan, exceeding the current financing amount, and the cumulative profit of public funds was 2 trillion yuan, and the dividend was 2.2 trillion yuan.

"We don't have a situation where we only focus on financing and not on investment. Shen Bing said that in the new stage of promoting the reform of the registration system, the China Securities Regulatory Commission will comprehensively benchmark the spirit of the Central Financial Work Conference, further establish the concept of investor-centered market development, further deepen the reform, promote the coordinated development of investment and financing, and continue to enhance the attractiveness of the capital market and the long-term return of investors.

China Securities Regulatory Commission: Financial fraud is a "cancer" in the capital market, resolutely break the "ecosystem" of fraud

Teng Biyan, director of the Office of the Punishment Committee of the China Securities Regulatory Commission, said: "Financial authenticity is an important cornerstone of the capital market, and financial fraud undermines the foundation of market integrity, seriously infringes on the legitimate rights and interests of investors, and is a 'cancer' in the capital market." "Cracking down on financial fraud cases has always been the focus of the CSRC's law enforcement work, and it has successively strictly investigated and dealt with major financial fraud cases such as Kangmei Pharmaceutical, Kangdexin, and Zhangzidao in accordance with the law. Since the implementation of the new "Securities Law", the China Securities Regulatory Commission has strictly implemented the requirements of the new "Securities Law", continued to intensify the crackdown, and severely cracked down on financial fraud cases with bad impact such as Yihua Life, Yu Diamond, Amethystum Storage, and Zeda Yisheng. "In the next step, the China Securities Regulatory Commission will always maintain a high-pressure situation of supervision and law enforcement of financial fraud, increase the punishment of financial fraud cases in accordance with the law, and at the same time adhere to the 'double investigation of one case', investigate and deal with intermediaries who are not diligent and responsible, and resolutely break the 'ecosystem' of fraud. ”

China Securities Regulatory Commission: Continue to increase the linkage with various departments of the public security and law departments to establish a "three-dimensional accountability" system

Teng Biyan, director of the Office of the Punishment Committee of the China Securities Regulatory Commission, said, "It should be pointed out that administrative penalties are only the starting point for accountability. Teng Biyan said that the China Securities Regulatory Commission will continue to increase the linkage with the public security and law departments, and comprehensively use administrative supervision measures, administrative penalties, civil compensation, criminal accountability, integrity punishment and delisting supervision, self-discipline management and other means to build a "three-dimensional accountability" system, forming a work pattern of performing its own duties, organic cohesion, and joint governance, continuously increasing the cost of violations, and enhancing the sense of gain and investment security of the majority of investors in law enforcement.

China Securities Regulatory Commission: The average daily trading volume of stock index futures and options is in a normal and reasonable range, and monitoring, monitoring, early warning and investigation will be strengthened

Li Zhibin, director of the Futures Department of the China Securities Regulatory Commission, said that since the beginning of this year, the stock index futures and options market has been operating steadily, with an average daily turnover of 379.18 billion yuan and an average daily position of 965.63 billion yuan, an average daily turnover of 1.809 billion yuan and an average daily position of 5.249 billion yuan, and an average daily turnover of stock index futures and options of 0.48, which is within a normal and reasonable range. "We have always adhered to the bottom-line thinking, strengthened the supervision of the whole process of trading behavior, increased monitoring, early warning and investigation, and made every effort to maintain the safe and stable operation of the market. He said.

China Securities Regulatory Commission: The effect of counter-cyclical adjustment of refinancing policy and supporting the good and limiting the inferior is emerging

Yan Bojin, director of the issuance department of the China Securities Regulatory Commission, responded to the implementation effect of the refinancing policy after it was implemented. At the end of August and the beginning of November 2023, the SFC and the stock exchange briefed the market on the regulatory arrangements for optimizing refinancing. On the one hand, it strengthens counter-cyclical adjustment, puts forward further strict requirements for refinancing, maintains the balanced development of the primary and secondary markets, and meets the reasonable financing needs of listed companies on the other hand. "The market can see that since the implementation of the optimized refinancing arrangement, the number of refinancing announcement plans and acceptances has decreased, indicating that listed companies have been more prudent and rational in implementing refinancing. Yan Bojin said that at the same time, the number of approvals issued has dropped significantly, from September to December last year, 95 approvals were issued, an average of 40% per month compared with the previous eight months, and the regulatory orientation of strict control is more distinct. From September to December last year, the average monthly funds raised were 27.1 billion yuan, down 43% from the previous eight months.

China Securities Regulatory Commission: Improving the efficiency of capital market supervision and governance is the best investor protection

"We have noticed that there are some views in the market that when it comes to an active market, we believe that we cannot crack down on market manipulation and insider trading, and when it comes to boosting investor confidence, we dare not crack down on fraud and fraud. This kind of thinking that puts inspection and law enforcement in opposition to market development is wrong and unrealistic. On January 19, at a press conference held by the China Securities Regulatory Commission, Li Ming, chief inspector of the China Securities Regulatory Commission and director of the inspection bureau, said. He pointed out that the tone of the work of investigating and dealing with illegal acts in accordance with the law, maintaining market order, and purifying the market ecology must always be adhered to and consistent. Li Ming said that after punishing counterfeiting and fraud in accordance with the law and making the lawbreakers pay a heavy price, they should also cooperate with the relevant departments to urge the lawbreakers to rectify, eliminate the illegal state, eliminate the adverse effects, restore the original state, supervise and strengthen the internal control and compliance construction of listed companies and other entities, and provide investors with true, transparent and standardized listed companies. Long-term confidence in an active market.