After the new chairman took office, the CSRC's first press conference was hugely informative

Source: Shanghai Stock Exchange website

Text/Chen Kangliang

On the 23rd, the China Securities Regulatory Commission held a press conference. This is the first press conference held by the China Securities Regulatory Commission in the Year of the Dragon, and it is also the first press conference held by the China Securities Regulatory Commission after Wu Qing assumed the new chairmanship, releasing a blockbuster policy signal.

There is currently no arrangement for an IPO to be checked back for 10 years

In response to media reports that the IPO will be checked for 10 years, Yan Bojin, chief risk officer and director of the issuance department of the China Securities Regulatory Commission, said at the meeting that preventing and cracking down on financial fraud and fraudulent issuance is a continuous process, and there is currently no arrangement for IPO to be checked for 10 years.

Yan Bojin said that in the supervision of issuance and listing, the China Securities Regulatory Commission is continuing to strengthen the whole chain of checks, and strictly punish financial fraud and fraudulent issuance. It will also significantly increase the proportion of on-site inspections of companies to be listed, and respond to investors' concerns with the improvement of the quality of listed companies.

Source: China Securities Regulatory Commission website at the press conference on February 23

Intensify the crackdown on fraudulent issuance, financial fraud, and illegal occupation by major shareholders

Li Ming, chief inspector of the China Securities Regulatory Commission and director of the inspection bureau, said at the meeting:

-- The China Securities Regulatory Commission will take multiple measures at the same time to further intensify the crackdown on illegal activities such as fraudulent issuance, financial fraud, and illegal occupation by major shareholders of listed companies.

——We will continue to invest more manpower and material resources to identify clues of fraud through diversified channels such as annual report review, comparison of historical data of the company, comparison of industry data, monitoring of major public opinions, and handling of complaints and reports, and further improve the ability to find clues through on-site inspection, verification and verification.

-- We will pay close attention to the bad behaviors of listed companies such as abusing accounting policies to regulate profits, and prevent counterfeiters from "hiding the world" and "passing through the customs in confusion".

——We will pay attention to the whole process of supervision and law enforcement, do a good job of "entry gate", and adhere to the principle of "declaration is responsibility".

For the actual controllers, directors, supervisors and senior executives of listed companies who illegally occupy guarantees and other "self-theft" behaviors, they will be punished through crackdowns, investigations and recoveries, rectification within a time limit, and transfer to the public security, so that they will be "empty of both people and money". In addition, for securities service intermediaries, they will adhere to the "double investigation in one case", and urge and warn the "gatekeepers" to effectively return to their responsibilities.

Fraudulent companies are only a minority

Li Ming, chief inspector of the China Securities Regulatory Commission and director of the inspection bureau, said that although there are "black sheep" in listed companies, on the whole, listed companies are still representatives of China's outstanding enterprise groups, including seventy percent of the top 500 domestic enterprises, which is the basic plate of the economy and an important micro foundation for high-quality development.

The 5,116 listed companies in Shanghai and Shenzhen account for only one-ten-thousandth of the country's more than 50 million enterprises, but the taxes and fees paid are equivalent to 1/4 of the national tax proportion, and the operating income is equivalent to nearly 60% of GDP. In the past five years, listed companies have invested 5.8 trillion yuan in R&D, accounting for half of the R&D expenditure of enterprises in the country, and the status of innovation leader has become more prominent.

At the same time, the listed company is a model model of the modern enterprise system, and implements the internationally equivalent accounting standards and internal control norms for enterprises. It can be said that the title of listed company itself means an honor. Fraudulent companies are only a minority. We understand that the majority of investors are "deep in love and responsible".

Accurately identify and crack down on market manipulation and insider trading

Li Ming said that the China Securities Regulatory Commission will build a "penetrating" clue screening system through multi-dimensional technical means such as all-round monitoring, big data collision, multi-channel collection, and intelligent analysis, so as to accurately identify and crack down on market manipulation and insider trading.

On the one hand, focus on punishing the key minority. The actual controllers, directors, supervisors, and senior executives of some listed companies have violated their duty of loyalty by taking advantage of their positions to peek at the "hole cards", control information disclosure, speculate on hot spots, arrange stock reviews, hoard stocks, pull up and raise prices, and preemptively trade, which are vile in nature and have a very bad impact, and must be severely punished. We will strengthen the linkage between information disclosure and transaction supervision, carry out dimensional expansion and analysis of relevant clues, and continue to crack down accurately and efficiently, so that the key few who dare to defy the law can learn a lesson and remember it for a long time.

On the other hand, we should pay close attention to new types of illegal cases. Promptly crack down on the use of new products and technologies to engage in violations of laws and regulations, and eliminate regulatory blind spots. For example, some gangs use financial derivatives such as over-the-counter stock options to amplify and manipulate returns, and some people manipulate LOF funds, convertible bonds and other varieties, all of which have been strictly investigated and dealt with. Recently, there have also been some gangs using remote control software to hide transaction traces to manipulate the market, in order to sell quickly and clear the smashing of goods, to seek huge illegal benefits, the China Securities Regulatory Commission has cooperated with the public security organs to complete the network, and the follow-up will promote serious criminal accountability.

The punishment in the case is too light, and the punishment will become more and more severe

Li Ming said that from the perspective of the enforcement cycle, it is still in the alternate application period of the old and new Securities Law. Some of the cases we have investigated and dealt with occurred before the implementation of the new Securities Law, and with the gradual acceleration of the handling of such cases, there will be more cases in the future where the new Securities Law will be applied, and the penalties will become more and more severe, and the cost of violating the law will only become higher and higher.

In the next step, the China Securities Regulatory Commission will adhere to the principle of the rule of law, continuously improve the efficiency of law enforcement within the scope of legal authorization, increase law enforcement, further enrich the means and methods of punishment, comprehensively use administrative measures such as regulatory measures, administrative penalties, market bans, punishments for dishonesty, and forced delisting for major violations, and make good use of class actions, support litigation and criminal means to form a superimposed strike effect on violators.

Source: The country is a through train

Editor: Zhuge Ruixin

Editor-in-charge: Wei Xi