The China Securities Regulatory Commission issued new regulations! Listed securities companies are overhauled by strong supervision

China Business Daily (Reporter Wang Tongxu) In order to strengthen the supervision of listed securities companies and promote the high-quality development of industry institutions, the China Securities Regulatory Commission issued the revised "Provisions on Strengthening the Supervision of Listed Securities Companies" (hereinafter referred to as the Regulations) on May 10, and the new regulations will be implemented from the date of issuance.

The China Securities Regulatory Commission (CSRC) revised and promulgated the Provisions on Strengthening the Supervision of Listed Securities Companies. (The picture comes from the official website of the China Securities Regulatory Commission)

The regulations put forward new requirements for the operation of listed securities companies, and emphasize the importance of investor protection, shareholder returns and information disclosure. In addition, the regulations also put forward requirements for regulating market-oriented financing behaviors.

According to the China Securities Regulatory Commission, this revision highlights goal-oriented and problem-oriented, and clearly requires listed securities companies to strive to return to their origins, become better and stronger, and effectively assume the role of "leader" and "vanguard" leading the high-quality development of the industry with a clearer people's position, more advanced development concepts, stricter compliance risk control and more standardized and transparent information disclosure.

Yuan Shuai, executive vice president of the China Urban Development Research Institute and the Institute for the Promotion of Agriculture, Culture and Tourism Industry, told China Business Daily that for the entire capital market, this regulation will help improve market transparency, enhance investor confidence, and promote the healthy and stable development of the capital market.

Focus on the main responsibility and main business

The regulations make it clear that listed securities companies should correct their business philosophy, focus on their main responsibilities and main businesses, put functionality in the first place, actively play the functional role of financial services for the real economy, highlight value creation, shareholder returns and investor protection, implement comprehensive risk management and compliance management requirements for all employees, improve the effectiveness of information disclosure, and play a benchmarking role in standardizing corporate governance.

At the same time, the provisions also regulate the market-oriented financing behavior of securities companies: the initial public offering of securities and listing trading and refinancing of securities companies shall reasonably determine the scale and timing of financing in combination with shareholder returns and value creation capabilities, their own operating conditions, market development strategies, etc., strictly regulate the use of funds, focus on their main responsibilities and main businesses, prudently carry out high-capital-consuming businesses, and improve the efficiency of capital use.

Yuan Shuai said that the new regulations aim to guide listed securities companies to become better and stronger, and lead the high-quality development of the industry. This requires securities companies to not only pursue the growth of scale and profits, but also pay attention to business quality and risk management, and promote the development of the industry in a healthier and more sustainable direction.

Strengthen risk management and control

In terms of improving corporate governance and strengthening internal control and risk management requirements, there are many regulations.

The regulations clearly require listed securities companies to establish a corporate governance structure with a clear shareholding structure, a streamlined organizational structure, clear responsibility boundaries, sound information disclosure, reasonable incentives and constraints, effective internal control and balance, and good professional ethics, improve the operating mechanism of the organizational structure, ensure the independence and soundness of the company's operation, implement comprehensive risk management requirements, and strengthen the control of various domestic and foreign subsidiaries.

In order to strengthen the regulation of shareholders and actual controllers, the regulations emphasize that shareholders, the actual controllers of shareholders and other related parties shall not require securities companies and their subsidiaries to embezzle the funds and assets of listed securities companies and their subsidiaries through illegal related party transactions, foreign investment, financing, guarantees, sales of financial products, etc., and damage the legitimate rights and interests of the company, other shareholders and customers.

In terms of standardizing the preparation and disclosure of financial statements, the provisions make it clear that the preparation and disclosure of financial statements of listed securities companies shall comply with the provisions of the accounting standards for business enterprises and relevant information disclosure rules, and fairly reflect the company's financial position, operating results and cash flow.

In addition, the regulations also propose that listed securities companies should improve the management of employees and long-term incentive and restraint mechanisms, strictly regulate short-term incentives, and must not over-incentive. At the same time, it should also continue to improve the evaluation and accountability mechanism and reputation risk management system, and disclose salary-related information in accordance with laws and regulations.

"The new regulations put forward stricter requirements for compliance and risk control of listed securities companies, which is an important measure to prevent financial risks and ensure the stable operation of the market. Securities companies need to establish and improve internal control mechanisms, strengthen risk identification, assessment and management, and ensure business compliance and controllable risks. Yuan Shuai said.

Improve information disclosure requirements

Follow the principles of materiality and necessity, and provide for clear and categorical optimization of information disclosure requirements.

First of all, in conjunction with the arrangements for the consolidation of securities companies, the provisions make it clear that if a listed securities company is approved or required by the regulatory authorities to prepare regulatory statements of risk control indicators on the basis of consolidated data, or to adopt advanced risk measurement methods such as the internal model method to calculate relevant risk control indicators, it shall explain the relevant caliber and differentiated arrangements at the time of disclosure.

Second, the regulations require listed securities companies to disclose the specific situation and compliance of major risk control indicators such as net capital in quarterly reports, interim reports and annual reports; When the core risk control indicators do not meet the prescribed standards, they shall be disclosed in a timely manner by means of a temporary announcement, explaining the reasons, current status and possible impact.

Thirdly, the regulations remove the requirement for the disclosure of the classification results of securities companies.

"Information disclosure is the cornerstone of the capital market." Yuan Shuai said that the new regulations require listed securities companies to disclose information in a more standardized and transparent manner, which will help improve market transparency, protect investors' right to know, and promote market fairness, justice and openness.

Practicing the people's position

Investors are the foundation of the development of the capital market, strengthening investor protection is the basic work related to the healthy development of the capital market, and protecting the legitimate rights and interests of investors is the unshirkable responsibility of securities companies. The revised regulations clearly require listed securities companies to practice the people's position and improve the level of investor protection.

In terms of establishing and improving the investor protection mechanism, the regulations emphasize that listed securities companies should establish and improve relevant systems and procedures for investor relations management activities, respond to investors' concerns in a positive, serious and professional manner, and introduce and reflect the actual situation of the company objectively, truthfully, accurately and completely; The investor relations management staff of a listed securities company shall have the necessary professional knowledge to perform their duties, and if the parent company of a securities company is a listed company, the securities company shall designate a special person to cooperate and make professional responses to matters related to the operation of the securities company.

Investor-oriented, value creation and shareholder returns need to be further strengthened. The provisions make it clear that listed securities companies should firmly establish the awareness of rewarding shareholders, formulate a reasonable plan for shareholder returns in combination with the company's operation and management, make a reasonable balance between operating profits for their own development and return to shareholders, attach importance to improving the level of cash dividends, encourage the formation of institutional arrangements for the implementation of share repurchases, and actively improve shareholder returns and optimize the governance structure through multiple dividends and repurchase cancellation throughout the year.

Zhang Xuefeng, a financial commentator, told reporters: "The regulations emphasize that listed securities companies should establish a clearer position of the people. This requirement reflects a sense of social responsibility and mission, requiring listed securities companies not only to pursue the maximization of their own interests, but also to consider the interests of the public, protect the legitimate rights and interests of investors, and promote the sustainable development of the economy. ”

It is reported that in the next step, the China Securities Regulatory Commission will adhere to the main line of strengthening supervision, preventing risks and promoting development, continue to strengthen the daily supervision of securities companies, strengthen law enforcement accountability, urge listed securities companies to implement a series of new requirements in place, and radiate good experience and practices in practice to the whole industry to promote the high-quality development of securities industry institutions.