An Qingsong: The "consideration" of corruption for those who have witnessed the share reform

喻观FINANCE

2024-05-16 00:12Published in Beijing

Text: Yu Yan

Edited by Wu Ge

Produced by Yuguan Finance

In the early winter of 20 years ago, a white snow fell in the capital.

In a conference room, the atmosphere was warm, and people from the China Securities Regulatory Commission and the State-owned Assets Supervision and Administration Commission were discussing the reform plan for equity division.

On the sidelines of the closed-door meeting, An Qingsong, a young director of the China Securities Regulatory Commission's Listed Company Supervision Department, dressed in an khaki jacket, took a photo in the courtyard. Behind him is a snow-covered path that leads to the Holly Garden.

It's like a metaphor: a whole new realm is unfolding in front of him. A trail that takes his life to a new level.

That year, An Qingsong was just 35 years old, and he had joined the China Securities Regulatory Commission for nine years, and had already transferred three offices in the supervision department of listed companies.

His career will soon usher in a new turning point, and his life will also be at the same pace as a piece of history: participating in the vigorous reform that will go down in the history of China's capital market - the reform of equity division.

Since then, those who have witnessed the reform of equity division have become an important label for An Qingsong. This reform not only changed the capital market and listed companies, but also changed the fate of An Qingsong himself.

19 years later, this person who has witnessed the share reform has achieved the highlight of his career because of the share reform, or he may also fall into the abyss of profit. "The trigger was pulled back then, and many years later, the bullet hit the center of the eyebrow."

In the history of the CSRC, there have been three rounds of large-scale and sustained anti-corruption storms: from 2005 to 2009, from 2014 to 2017, and since 2021.

In the round of anti-corruption storm since 2021, a group of An Qingsong's colleagues have been dismissed, some of whom have worked with him. On November 14, 2023, CCDI announced that An Qingsong, former secretary of the Party Committee and president of the China Futures Association (hereinafter referred to as the "Mid-term Association"), will finally share the fate with those former colleagues who once breathed the same breath.

An Qingsong, who is considered by the industry to be a "fish that slipped through the net" of the anti-corruption tide of stock reform, finally did not escape the bullet of fate. More than 20 years have been like a dream, and this body is "in the cage" is amazing.

Half a year after the fall, An Qingsong was double-opened. On May 14, 2024, the CCDI issued an announcement pointing out that An Qingsong used his position to seek improper benefits for others in the reform of equity division, corporate issuance and major asset restructuring, daily supervision, etc., which seriously undermined the order of the capital market and damaged the image of securities supervision, which is a typical example of collusion between government and business.

This person who has witnessed the reform of equity division will "enter the network" in 2023, the year when the stock issuance registration system will be fully launched, which is quite symbolic.

An Qingsong once wrote in a poem: You must believe in the true meaning of the world, distinguish between right and wrong, and be self-controlled.

Unexpectedly, his thoughts were gushing, but his heart was greedy.

"Fish that slipped through the net" entered the net

Half a year ago (November 14, 2023), a week after An Qingsong was taken away by the relevant departments, the announcement about him came as scheduled. Four days after the fall of Chen Gongyan, an old colleague, former president of the Securities Association of China (hereinafter referred to as the "China Securities Association"), and former party secretary and chairman of China Galaxy Securities Co., Ltd. (hereinafter referred to as "Galaxy Securities", 601881.SH, 6881.HK), An Qingsong also appeared on the list of those who were dismissed from the securities regulatory system.

An Qingsong's fall from the horse does not seem to be too surprising. It is understood that his previous qualification as a deputy to the National People's Congress was not approved, which became the prelude to the end of his fate.

On September 8, 2023, An Qingsong attended the 2023 China (Zhengzhou) International Futures Forum, which was his last public appearance in the media.

In the eyes of many people in the industry, An Qingsong is the "fish that slipped through the net" of the anti-corruption storm of the China Securities Regulatory Commission, and the "boots" will land sooner or later.

The three waves of anti-corruption set off by the China Securities Regulatory Commission have eliminated a number of cadres of the China Securities Regulatory Commission, from vice chairmen to department chiefs, as well as a group of regulatory cadres who passed through the "revolving door" of the China Securities Regulatory Commission in the early years and joined securities firms or private equity funds.

Judging from the situation of those who have fallen from the securities regulatory system, the vast majority of them come from the key departments of the securities regulatory system - the listing department, the issuance department or the issuance examination committee. These departments are not only the main targets of power rent-seekers, but also the hardest hit areas of corruption in the securities regulatory system.

On the day An Qingsong's dismissal announcement was released, his old leader, Zhu Congjiu, former assistant to the chairman of the China Securities Regulatory Commission, then a member of the party group and vice chairman of the Zhejiang Provincial Committee of the Chinese People's Political Consultative Conference, was arrested half a year after his dismissal.

Zhu Congjiu is the fourth senior executive of the China Securities Regulatory Commission to be dismissed after Wang Yi, Yao Gang, and Zhang Yujun, and these four are also the "eye of the storm" of every round of anti-corruption storms in the securities regulatory system.

Since 2021, the anti-corruption storm in the securities regulatory system has been unprecedented, especially in 2023, there will be more than a dozen people who have been dismissed, among them, Chen Gongyan and An Qingsong are the former presidents of the China Securities Association.

On May 14, An Qingsong was double-opened (expelled from the party and expelled from government affairs) for serious violations of discipline and law. The CCDI's announcement listed all kinds of violations of law and discipline by An Qingsong, and the problems involved were even wider than those of his old leader, Zhu Congjiu.

The original intention of joining the party is not pure, there is no sense of bottom line, giving up regulatory duties, and using the convenience of his position to seek improper benefits for others in the reform of equity division, enterprise issuance and major asset restructuring, daily supervision, etc., seriously undermining the order of the capital market, which is a typical example of political and business collusion;

is keen on the so-called "secret of officialdom", vassalage is elegant, greedy, wants to be an official, wants to be rich, wants to be famous, wants to cling, and wants to enjoy;

providing false information to resist organizational censorship, indulging in feudal superstitious activities, and privately collecting and reading books with serious political problems;

Keeping important confidential documents privately;

During the epidemic period, he still frequently accepted high-end banquets and travel arrangements for management service objects, accepted gifts, high-end gifts and a large amount of Moutai liquor in violation of regulations, and used public vehicles for private use for a long time;

Concealing or failing to report domestic and foreign real estate, insurance and other personal matters, and using authority to seek benefits for others in the recruitment of cadres and employees;

Buying and selling stocks in violation of regulations, using the power or influence of the position to sell books written by oneself to management service users, arranging for relatives to receive salaries in their names, and receiving vehicle transportation services for a long time;

Illegally received property, the amount of which was particularly huge.

The announcement used nearly 400 words to outline the image of a decathlon corrupt "player".

As an in-service cadre in the securities regulatory system, An Qingsong gives people the impression that he is "rich to the point of being unreasonable". Now, the announcement has revealed where An Qingsong's money came from.

With the label of "first-hand witness of share reform", An Qingsong made full use of the regulatory power in his hands to seek improper benefits for others in the reform of equity division, corporate issuance and major asset restructuring, daily supervision, etc., and was rated as "a typical example of political and business collusion" by CCDI.

An Qingsong became the first financial regulatory cadre to be rated as a "typical example of political and business collusion".

The report of the 20th National Congress of the Communist Party of China pointed out that it is necessary to resolutely prevent leading cadres from becoming spokesmen and agents of interest groups and powerful groups, and resolutely deal with the problem of collusion between government and business to undermine the political ecology and economic development environment, and never tolerate it.

On March 15, Li Chao, vice chairman of the China Securities Regulatory Commission, said frankly at the press conference of the State Council Information Office that the issuance review is an area with a high incidence of corruption. In view of the characteristics of the operation of power after the full implementation of the stock issuance registration system, the supervision and restraint of public power will focus on key powers such as policy-making power, administrative examination and approval power, supervision and law enforcement power, and punishment and accountability power, and improve the system and mechanism. At the same time, we will persist in investigating bribery and bribery together, and establish a comprehensive punishment mechanism for bribery in the capital market.

The past of the share reform

It is understood that An Qingsong has always been regarded by the market as a "fish that slipped through the net" in the anti-corruption tide of stock reform. After its fall, the industry speculated that it may be related to the old equity of the year.

This speculation was eventually confirmed in the CCDI's announcement. He also became the first person in the securities regulatory system to be accused of being involved in the reform of share splitting.

Go back 20 years. On January 31, 2004, the "Several Opinions on Promoting the Reform, Opening-up and Steady Development of the Securities Market" (i.e., the "Nine Articles") was promulgated, which became a programmatic document for the capital market.

Equity division is a historical problem in the development of the capital market, at that time required the shares formed by state-owned assets not to be listed and circulated, that is, "the stock is not moving, incremental listing", and the shares of listed companies are thus divided into tradable shares and non-tradable shares. This practice of different rights and different prices for the same shares is believed by market participants to have caused serious distortions in the property rights relationship and market pricing mechanism of listed companies.

Under this kind of separation, the interests of the two types of shareholders are inconsistent, and it is difficult to form an effective equity incentive. You capital can control the stock price of tradable shares with only a small amount of funds, causing stock price fluctuations, and major shareholders of non-tradable shares who have a controlling stake can make money through policy arbitrage or hollow out listed companies with cash dividends.

It is imperative for the healthy development of the capital market to break the "ice" of non-tradable shares.

After the promulgation of the "National Nine Articles", the China Securities Regulatory Commission and other five ministries and commissions formed a leading group for the reform of equity division and began to promote the reform of equity division.

At that time, An Qingsong, who was the director of the comprehensive division of the listed company supervision department of the China Securities Regulatory Commission, participated in the closed-door meeting held in December 2004 and entered the tuyere of the roaring era.

On January 1, 2005, the China Securities Association issued the Notice on Abolishing the Provisions on the Work Plan for Recommending Issuance Applications of Securities Companies, officially changing the "channel system" to the "sponsorship system". This system, together with the issuance examination system, has become the two core systems for securities issuance.

2005 was known as the "first year of share reform" in the mainland capital market. In March of this year, An Qingsong had a new position: he served as a member of the Party Committee and assistant director of the Beijing Securities Regulatory Bureau, and entered the leadership team for the first time.

The following month (April 29, 2005), the China Securities Regulatory Commission (CSRC) issued a notice of less than 2,000 words on issues related to the pilot reform of equity division of listed companies, which initiated the so-called "no turning back" equity division reform. On May 9, four listed companies, including Sany Heavy Industry, opened the curtain of the share reform pilot.

In January 2006, An Qingsong returned to the China Securities Regulatory Commission and served as the deputy director of the Office of the Leading Group for Equity Split Reform and the deputy director of the Office of the Leading Group for Equity Split Reform of the Shenzhen Stock Exchange.

When An Qingsong took office, the pilot work of share reform had been successfully completed. More than four months after his arrival (May 24, 2006), CAMC became the first case of new share issuance after the launch of the "new and old separation", announcing the full recovery of market financing. By the end of 2007, more than 1,000 listed companies had basically completed their share reforms, and A-shares had entered the era of full circulation.

The reform of equity division not only resolved the historical burden, but also led to a wave of the longest and largest "reform bull market", with the Shanghai Composite Index rising from 998.23 points on June 6, 2005 to 6124.04 points on October 16, 2007.

Such a grand occasion of "long cow" is as beautiful as a distant dream.

In December 2006, in order to celebrate the completion of the share reform, An Qingsong wrote a poem "Xiaozhongshan • Successful Share Reform":

The snow drifts quietly all night, where the people go, and the moon is clear. Decentralized decision-making seeks balance, let one step go, and the sea is wide by the sky. Hundreds of schools of thought contended together, set up a new contract, and the shares were equally righteous. After the dry sail flower regained sight, re-reading, the eyes are full of style.

Although An Qingsong served as the deputy director of the Office of the Equity Leading Group for only one year, in the following ten years, he firmly welded the label of "a person who has experienced the share reform" on his body and wrote a large number of articles on the theme of share reform. He not only enjoyed the dividends of the times, but also "transformed" this dividend into the "consideration" for his own selfish interests.

The core of the reform of equity division is that non-tradable shares obtain market circulation rights through the payment of "consideration", and compensate potential interests through share gifts, repurchases, etc. At that time, the China Securities Regulatory Commission stated that it would not intervene in the formulation of specific plans for the pilot companies.

An Qingsong once told the media that there was a dispute over whether to write "consideration" into the reform system at that time. When discussing with many jurists, he pointed out that this concept is not consideration in the strict sense of the contract law, but has more financial attributes, and is an interactive concept that balances expected returns and current interests.

At that time, some market participants were also worried that under the so-called "consideration", if the executives of listed companies and market makers joined forces, there was a risk of collusion between each other to divide state-owned assets or exchange interests.

An Qingsong later admitted to the media that at the beginning of the share reform, there was no precedent to follow in many cases, and there were gaps in regulatory approvals.

According to media reports, at that time, the share reform office was composed of personnel drawn from various departments of the China Securities Regulatory Commission, and all matters related to the share reform could be approved by it, without going through other relevant departments, and had a great say in the share reform plan of the listed company.

This temptation of money and power is a test for those who hold the power of supervision.

An Qingsong's announcement shows that he took advantage of his position to seek improper benefits for others in the reform of equity division, enterprise issuance and major asset restructuring, and daily supervision.

Before An Qingsong, he used the share reform to enrich his own pockets, and the most famous and profitable was his former colleague in the supervision department of listed companies, Xiao Shiqing, who was also the deputy director of the listing office and the deputy director of the share reform office at that time.

According to the legal documents about Xiao Shiqing, during his tenure as deputy director of the Listed Company Supervision Department of the China Securities Regulatory Commission, Xiao Shiqing learned that Sinopec planned to implement share reform and reorganization of its listed subsidiary, Beijing Hua No. 2, and that Everbright Securities planned to backdoor the listing of Beijing Hua No. 2, he instructed his family to use multiple accounts to spend about 35.29 million yuan to buy about 4.3 million shares before the suspension of Beijing Hua No. 2, and to make a profit of hundreds of millions of yuan through insider trading, setting a record for the insider trading of regulatory cadres at that time. Of course, the price paid by Xiao Shiqing after the case was also huge.

As for the share reform and reorganization of listed companies, An Qingsong has profited from the follow-up official announcement of the relevant departments.

As of this year, it has been 20 years since the concept of "split shares" emerged. In the past 20 years, the mainland capital market has completed two milestones: the reform of equity division and the reform of the registration system, and today's capital market is no longer the capital market of the past.

The cadres who participated in the reform of equity division back then, in the great waves of the times, "sat and watched the flow of youth, but struggled with sideburns".

An Qingsong, who "has temples and stars", went to the other end of fate.

The consideration of life

An Qingsong, from Guanling, Guizhou, was born in an ancient ethnic minority, the Gelao people. It is said that this ethnic group is a descendant of the Western Han Dynasty, and is proficient in brewing art, and the earliest brewing technology in the Moutai area comes from the Gelao people.

Perhaps because of this origin, An Qingsong also became a Moutai lover and was accused of accepting a large amount of Moutai liquor in violation of regulations.

An Qingsong, who came out of the mountainous area, walked into the capital and became the first secretary of the board of directors of Beijing Tianqiao Department Store Co., Ltd. (hereinafter referred to as "Tianqiao Department Store", 600657.SH) at the age of 24.

Tianqiao Department Store, known as the "country's first commercial red flag", is the first officially registered joint-stock enterprise since China's reform and opening up.

On May 24, 1993, as one of the first listed companies in Beijing, Tianqiao Department Store was listed on the Shanghai Stock Exchange. An Qingsong became the secretary of the board of directors of this company in this year, and it can be said that he is also one of the earliest board secretaries of listed companies in Beijing.

Perhaps it was this practical experience in listed companies that led him to work in the supervision department of listed companies when he joined the China Securities Regulatory Commission two years later (November 1995). During his time at the China Securities Regulatory Commission, he has been working in the Department of Supervision of Listed Companies, from the deputy director and director of the inspection department, to the director of the supervision and coordination department, and finally to the director of the comprehensive department.

After returning to the China Securities Regulatory Commission in 2007, An Qingsong replaced Xiao Shiqing, who was transferred to the president of Galaxy Securities, as the deputy director of the supervision department of listed companies, and stayed in this department for a total of 18 years.

The Supervision Department of Listed Companies is responsible for the information disclosure, restructuring, mergers and acquisitions of listed companies, and the system of corporate governance system, and is also the department with real power. In the "fallen horse group" of the securities regulatory system, there are only a few who have served as deputy directors of the supervision department of listed companies. In addition to An Qingsong and Xiao Shiqing, there are also Tong Daochi, Lu Zefeng and others.

In 2012, the China Association of Public Companies was established, and An Qingsong served as vice president and first secretary general. During this time, he published extensively on public company research.

In 2015, An Qingsong bid farewell to the Supervision Department of Listed Companies and was transferred to the Secretary of the Party Committee and Director of the Qingdao Securities Regulatory Bureau, becoming the leader of the dispatched agency. More than a year later, he was transferred to the party secretary and director of the Tianjin Securities Regulatory Bureau, and the director of the Tianjin Inspection Bureau. So far, he has dispatched offices in the three places to perform his duties.

In 2018, An Qingsong returned to Beijing and served as Secretary of the Party Committee and Executive Vice President of the China Securities Association.

In November of this year, the Shanghai Stock Exchange set up the Science and Technology Innovation Board and piloted the registration-based system, which opened the prelude to the pilot registration-based system in the mainland.

In order to promote the reform of the registration-based system of the Science and Technology Innovation Board, the China Securities Regulatory Commission (CSRC) established the Office of Comprehensively Deepening Capital Market Reform in 2019. This is the second time he has personally experienced an important reform of the capital market.

On March 1, 2019, the China Securities Regulatory Commission (CSRC) promulgated the "2+6" system rules of the Administrative Measures for the Registration of Initial Public Offerings of Shares on the Sci-Tech Innovation Board (for Trial Implementation) and the Measures for the Continuous Supervision of Listed Companies on the Sci-Tech Innovation Board (for Trial Implementation), which will be implemented from the date of promulgation. Four months later (July 22, 2019), the first batch of 25 companies listed on the STAR Market.

In May 2021, An Qingsong replaced Chen Gongyan as Secretary of the Party Committee and President of the China Securities Association.

During his tenure at the China Securities Association, An Qingsong also succeeded Chen Gongyan as the chairman and legal representative of China Securities Inter-Agency Quotation System Co., Ltd., a subsidiary of the China Securities Association. According to Caixin, in 2018, Galaxy Securities and China Securities Quotation jointly acquired land in Beijing's Fengtai Lize Business District, planning to spend nearly 3.2 billion yuan to build Beijing's "second financial street", which attracted the attention of relevant departments.

In January 2023, An Qingsong was transferred to the post of Secretary of the Party Committee and President of the Mid-term Association. This became his last position. It is also the end of his career.

An Qingsong once said in his speech at the 2022 Financial Street Forum Annual Conference that securities industry institutions are the core intermediaries of the capital market, and they play a pivotal role by connecting the financing end and the investment side, and have become an important channel for the people to share the fruits of economic growth. Securities services are oriented to the real economy and thousands of households, which determines that the quality of securities talents should not only pay attention to the forging of "talent", but also pay attention to the cultivation of "morality".

And the announcement about him shows that he clearly did not meet the requirements of both ability and moral integrity, which he said.

Some people in the industry once summed up the life of those who fell in the financial industry like this: as long as the time is long enough, all the consideration will be paid.

【An Qingsong Profile】

Gelao nationality, born in October 1969, is a native of Guanling, Guizhou. He holds a Ph.D. in economics from Nankai University, a postdoctoral fellow and associate researcher in applied economics at the Institute of Finance, Chinese Academy of Social Sciences. He is the author of "Corporate Transformation: A New Perspective on the Reform of China's Corporate System", "Identifying Opportunities: Micro Reflections on China's Economic Transformation", "Zhizhilu: Practice and Thinking of China's Capital Market", and "Xing Silu: Theory and Practice of Capital Market System".

In July 1993, he was appointed as the secretary of the board of directors of Beijing Tianqiao Department Store Co., Ltd.

In November 1995, he joined the China Securities Regulatory Commission and successively served as the Deputy Director and Director of the Inspection Division, the Director of the Supervision and Coordination Division and the Director of the General Division of the Listed Company Supervision Department of the China Securities Regulatory Commission.

In March 2005, he was appointed as a member of the Party Committee and assistant to the director of the Beijing Securities Regulatory Bureau.

In January 2006, he was appointed as the Deputy Director of the Office of the Leading Group for the Reform of Equity Split of the China Securities Regulatory Commission and the Deputy Director of the Office of the Leading Group for the Reform of Equity Split of the Shenzhen Stock Exchange (at the leadership level).

In January 2007, he was appointed as the Deputy Director General of the Listed Company Supervision Department of the China Securities Regulatory Commission.

In February 2012, he was appointed as the vice president (and secretary-general) of the China Association of Listed Companies.

In January 2015, he was appointed as Secretary of the Party Committee and Director of Qingdao Securities Regulatory Bureau.

In November 2016, he was appointed Secretary of the Party Committee and Director of Tianjin Securities Regulatory Bureau and Director of Tianjin Inspection Bureau.

On July 22, 2020, he was appointed as the legal representative and chairman of the board of directors of China Securities Inter-agency Quotation System Co., Ltd.

In May 2021, he was appointed as Secretary of the Party Committee and President of the Securities Association of China.

In January 2023, he was appointed Secretary of the Party Committee and President of the China Futures Association.

On November 14, 2023, the horse was dropped.

On May 14, 2024, it was double-opened.

[2020-2024 list of fallen members of the securities regulatory system]

In November 2020, Tong Daochi, member of the Standing Committee of the Hainan Provincial Party Committee, Secretary of the Sanya Municipal Party Committee, and former deputy director of the Distribution Department

On May 28, 2021, Mao Bihua, former Secretary of the Party Committee and Director of the Chongqing Securities Regulatory Bureau

On October 5, 2021, Zeng Changhong, the former first-level inspector of the Investor Protection Bureau of the China Securities Regulatory Commission

On November 26, 2021, Zhu Yi, former researcher of Shanghai Bureau and general manager of the investment banking department of Guotai Junan Securities

On December 3, 2021, the deputy director of the review center of the Science and Technology Innovation Board of the Shanghai Stock Exchange operated the ship

On May 20, 2022, Zhu Zhilong, the second-level inspector of the Hunan Securities Regulatory Bureau

On June 2, 2022, Wang Zongcheng, former director of the Accounting Department of the China Securities Regulatory Commission

On June 24, 2022, Lin Yongfeng, member of the 16th Main Board Issuance Examination Committee of the China Securities Regulatory Commission and former director of the Accounting Supervision Department of the Shanghai Stock Exchange

On January 6, 2023, Feng Henian, former Secretary of the Party Committee and Director of Shandong Securities Regulatory Bureau, and former Chairman of Minsheng Securities

On March 31, 2023, Wang Qingshan, the secretary of Zhu Congjiu, the former assistant to the chairman of the China Securities Regulatory Commission and the president of Zheshang Securities

On April 21, 2023, Liu Ti, former deputy general manager of the Shanghai Stock Exchange

On May 4, 2023, Zhu Congjiu, former assistant to the chairman of the China Securities Regulatory Commission, member of the party group and vice chairman of the Zhejiang Provincial Committee of the Chinese People's Political Consultative Conference

On May 29, 2023, Li Geping, former Secretary-General of the Securities Association of China, former Deputy Director of the Fund Supervision Department, and President of China Securities Construction Investment

In June 2023, Gao Bin, former deputy general manager of CSI Deng, former chairman and general manager of Shanghai Jinglin Investment Development Co., Ltd

In June 2023, Lu Zefeng, deputy director of the Listing Department of the China Securities Regulatory Commission

On July 15, 2023, Zhang Dongke, former vice chairman of the Shanghai Stock Exchange

On November 10, 2023, Yang Chunlei, former full-time deputy director of the Inspection Office of the Party Committee of the China Securities Regulatory Commission

On November 10, 2023, Chen Gongyan, former chairman of Galaxy Securities and chairman of the board of supervisors of the Securities Association of China

On November 14, 2023, An Qingsong, Secretary of the Party Committee and President of the China Futures Association

On April 26, 2024, Yao Qian, Director of the Science and Technology Supervision Department and Director of the Information Center of the China Securities Regulatory Commission

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