Wu Qing, Chairman of the China Securities Regulatory Commission: Protecting investors is the primary task of supervision and effectively maintaining the order of the "three publics" in the market

Xinhua Finance and Economics, Beijing, May 15 (Xinhua) -- The China Securities Regulatory Commission (CSRC) held the 2024 "May 15 National Investor Protection Publicity Day" on May 15, with the theme of "Caring for Investors and Working Together to Promote High-quality Development and Boost Investor Confidence".

Wu Qing, Secretary of the Party Committee and Chairman of the China Securities Regulatory Commission, said in his speech at the event that since its establishment, the China Securities Regulatory Commission has insisted on protecting the legitimate rights and interests of investors as its fundamental mission and the top priority of its work. At present, the China Securities Regulatory Commission is thoroughly implementing the spirit of the Central Financial Work Conference, fully implementing the new "National Nine Articles", and solidly promoting the implementation of the "1+N" policy measures in the capital market. The core content is to promote strong supervision, risk prevention, and high-quality development in an integrated manner, strengthen the foundation, strictly supervise and strictly manage, and accelerate the creation of a safe, standardized, transparent, open, dynamic and resilient capital market. To this end, the China Securities Regulatory Commission (CSRC) has issued a series of institutional rules, including strictly controlling the entry of issuance and listing, strengthening the supervision of cash dividends, share reductions, quantitative trading, etc., and urging industry institutions to perform their duties and responsibilities. All these fully reflect the clear orientation of protecting investors. The China Securities Regulatory Commission (CSRC) will consistently implement investor protection throughout the entire process of capital market system construction and regulatory law enforcement.

First, we need to further consolidate the institutional foundation for investor protection. Advocating the rule of law and respecting rules is the basic prerequisite for running a good capital market. To achieve good law and good governance, we must follow the general laws of the capital market, and more importantly, we must be more based on China's national conditions and firmly grasp the largest market situation, which is that small and medium-sized investors account for the vast majority. This requires us to fully listen to the opinions and suggestions of investors, especially small and medium-sized investors, in the process of formulating and revising the system, make objective and fair professional research and judgment, pay more attention to the fairness of the system, and provide investors with more substantive fair protection.

Second, we should further promote the improvement of the quality of listed companies. Listed companies are the foundation of the market and the source of investment value. From the "entrance" of listed companies to continuous supervision and then to the "export", more stringent institutional arrangements are being established. The purpose is to resolutely keep counterfeiters out, implement the requirements of openness and transparency in the whole process of corporate information disclosure, integrate the concept of respecting investors and rewarding investors into various mechanisms of corporate governance, and resolutely remove "zombie enterprises" and black sheep from the market. As the "key minority", the controlling shareholders, actual controllers, and directors, supervisors and senior executives must stand up to the front and shoulder their responsibilities. At the same time, we will adapt to the needs of the development of new productive forces, optimize institutional arrangements such as issuance and listing, mergers and acquisitions, and equity incentives, and support those companies with innovation and development potential to accelerate their efforts to become better and stronger, not only to support the healthy growth of high-quality emerging enterprises, but also to support the transformation and upgrading of high-quality traditional enterprises, so that investors can better share the fruits of high-quality economic development.

Third, we will further promote industry organizations to improve the level of professional services. Industry institutions connect the two ends of investment and financing, and must devote more energy to serving investors. It is necessary to put functionality in the first place, correct the business philosophy, return to the origin, keep integrity and innovation, abide by fiduciary obligations, enhance professional capabilities, and provide investors with more diversified and more suitable products and services. Benchmarking against the "five wants and five noes" of financial culture with Chinese characteristics, attaching importance to reputation management, strengthening professional ethics, and cultivating a good industry culture and investment culture.

Fourth, it is necessary to further crack down on securities violations and crimes in accordance with the law. Illegal and criminal acts such as fraudulent issuance, financial fraud, insider trading, and market manipulation are cancers in the capital market and seriously infringe upon the legitimate rights and interests of investors. Since last year, the China Securities Regulatory Commission (CSRC) has resolutely implemented the requirements of "long teeth and thorns" and angular supervision, and the number of cases investigated and handled and the amount of penalties have increased significantly. We are steadfast in our attitude towards "zero tolerance" to crack down on securities crimes. We will work with relevant parties to improve the judicial system and mechanism for securities law enforcement, accelerate the construction of a comprehensive punishment and prevention system for preventing and combating counterfeiting in the capital market, further improve the efficiency of administrative and criminal linkage, make lawbreakers pay a heavy price, and earnestly maintain the order of the "three publics" in the market.

Fifth, further unblock the channels for investors to protect their rights and remedies. In recent years, the revision of the Securities Law and the promulgation of the Futures and Derivatives Law have provided many new institutional mechanisms to resolve investor disputes and strengthen rights and interests relief, and some landmark cases have been implemented one after another. We will continue to sum up experience, make comprehensive use of these investor protection system tools, increase the application of litigation by securities special representatives, better play the role of mediation and arbitration, strengthen the docking of litigation and mediation, promote the model judgment mechanism, and make good use of advance compensation and party commitments in accordance with the law, so as to more effectively support investors to obtain compensation and relief. At the same time, we will mobilize the efforts of all parties to strengthen investor education in a more targeted manner, help investors enhance their risk awareness, stay away from illegal financial activities, and better protect their legitimate rights and interests.

Wu Qing concluded that the protection of investors is the primary task of securities supervision, and it is also a systematic project, which requires continued and strong support from all sides. We will work together with all relevant parties, especially with financial regulatory authorities such as the State Administration of Financial Regulation, public security and judicial organs, local party committees and governments, news and publicity units, and market participants, to continuously improve the institutional mechanism for investor protection, jointly cultivate a mature and rational investment culture, actively create a law-abiding and trustworthy market ecology, and promote the high-quality development of the capital market to a new level.

On the day of the event, the China Securities Regulatory Commission (CSRC) issued 10 institutional rules closely related to investor protection, including the Administrative Provisions on Programmatic Trading in the Securities Market (for Trial Implementation), the Guidelines for the Application of Regulatory Rules - Issuance No. 10, the Work Plan on Improving the Diversified Resolution Mechanism for Securities and Futures Disputes and Deepening the Governance of Litigation Sources, as well as the business rules of relevant self-regulatory organizations and insurance institutions, and announced 12 cases involving insider trading, market manipulation, trading using undisclosed information, illegal stock speculation by practitioners, Investor protection law enforcement cases such as illegal occupation of funds of listed companies, 10 typical cases of investor protection, such as the lawsuit of Zeda Yisheng's special representative, the case of advance compensation of amethystum storage, and the case of capital occupation of Modern Avenue by shareholders of insured institutions, as well as 12 investment education products that are widely welcomed by investors, were released, and the overall law enforcement situation of the CSRC in 2023 was introduced. At the same time, all units of the China Securities Regulatory Commission, together with local financial regulatory departments and judicial organs, simultaneously organize and carry out various forms and rich content of investor protection publicity and education activities throughout the country, actively publicize capital market policies and regulations and investment knowledge, and help investors enhance risk awareness and self-protection capabilities.

Editor: Luo Hao

Statement: Xinhua Finance is a national financial information platform undertaken by Xinhua News Agency. In any case, the information published on this platform does not constitute investment advice. If you have any questions, please contact customer service: 400-6123115