On January 21, the Fourth Session of the 13th CPPCC Beijing Municipal Committee was officially opened. Zhang Ye, member of the Municipal Committee of the Chinese People's Political Consultative Conference, member of the Central Committee of the China Association for Promoting Democracy, and deputy director of the Science and Technology Supervision Committee of the China Securities Regulatory Commission, mentioned in an interview with the Beijing Business Daily reporter that in the context of big data, the use of regulatory technology means has played a vital role in preventing insider trading in the capital market and cracking down on insider trading, but the current data sharing system and related mechanisms are still not fully mature, and it is necessary to continuously strive to form a panoramic and covering regulatory data system.
Zhang Xiaoyan/Photo
Technology regulation is crucial
With the continuous development of the capital market, there are also many problems highlighted in the context of hot market transactions. The default of the "Yong coal bond" that has previously aroused heated discussion in the market reflects the illegal behavior of many institutions and also reflects a "microcosm" of the chaos in the capital market.
It is worth mentioning that regtech means play a crucial role in the disclosure of relevant insider trading. Zhang Ye said that as far as the regulatory authorities are concerned about the investigation of the case, from the discovery of clues, to the investigation of the problem, and the final determination of evidence, it is inseparable from the support of scientific and technological regulatory means.
Zhang Ye further explained the principle behind it, "If the performance of a stock shows a change, it can use technical means to capture the phenomenon of change. After catching the change, you can further find the profiteer behind it according to the transaction record, and then track whether the profiteer and insider trading news have a certain correlation, whether it is also related to other traders, etc. When determining evidence of crime, it is also necessary to use technical means to prove that the MAC address of the computer where the transaction is conducted, the identification number of the mobile phone device, etc., can be used as evidence of whether the trader is involved in insider trading. Therefore, the entire regtech approach has played a key role in preventing insider trading and cracking down on insider trading. ”
Technical supervision will be strengthened
Today, the implementation of a full registration system is imminent. More market news said that the full registration system of the A-share market is expected to land in 2021. At a time when the registration system is constantly advancing, what role does regTech means play in this?
In Zhang Ye's view, in the context of the registration system, regulatory technology means are required to be further strengthened. Since the registration system is based on information disclosure, and the use of technical means can greatly improve the efficiency and correctness of the verification of the authenticity of information disclosure, the use of big data technology can also further improve the integrity of information disclosure. Therefore, the registration system actually requires stronger technical support and support.
With the recent market performance continuing to improve, investors' investment sentiment is also very high, and the A-share market has continued to be hot since the beginning of 2021. In the context of the hot market, how can the means of regulatory technology better safeguard the three principles of "fairness, openness and justice" in the capital market?
Zhang Ye said that the use of scientific and technological means to combat criminal acts has maintained its fairness; the use of scientific and technological means to improve the accuracy of information disclosure reflects its openness; and the use of technological means to ensure the rationality of administrative punishment is to maintain impartiality. "Since the transactions in the capital market are based on electronic transactions, it is an inevitable choice to use technical means to supervise electronic transactions."
Enabling data integration is key
It has been 3 years since the CSRC issued the "Overall Construction Plan for Regulatory Technology of the China Securities Regulatory Commission" in August 2018, and the regulatory authorities have many years of experience in the use of regulatory technology means, but in the view of industry insiders, when faced with a large number of industry institutions, there are still deficiencies in regulatory technology means, and there is more room for further improvement.
Under the pressure of economic downturn and internal and external situation, private equity funds are growing against the trend, according to the latest data from the Asset Management Association of China (hereinafter referred to as "China Foundation Association"), as of the end of 2020, private equity funds have registered 24,600 managers, 96,800 private funds have been filed, and the management scale is 15.97 trillion yuan. At the same time as the rapid development of the private fund industry, it is also accompanied by the emergence of various chaos, such as public or disguised public fundraising, circumvention of qualified investor requirements, capital pool operation, etc., and even the occurrence of illegal acts that seriously infringe on the interests of investors, such as embezzlement, misappropriation of fund property, illegal fund raising, etc. In this regard, in January 2020, the China Foundation Association issued the Several Provisions on Strengthening the Supervision of Private Equity Investment Funds to further regulate the relevant behavior of private fund managers.
Zhang Ye also mentioned that due to the large number of private equity fund institutions, it is not realistic to rely on manual management, and technical means must be used to assist. "But there are still private equity chaos emerging in an endless stream, indicating that the regulatory means are still not strong enough to see everything." The regulatory authorities are making every effort to improve it, such as through big data analysis technology, to find out whether there is a capital pool, whether there is a phenomenon of "one control and more", and then further find out the problem according to offline manual verification. Therefore, the larger the number of industries and the more complex the situation, the more technical means need to be used to achieve supervision. ”
As for at what levels the current regulatory technology means can be further improved, Zhang Ye said that the key is to improve the integration and integration of data. Since the data held by the regulatory authorities is part of the data, if it can be integrated into a whole with the data held by other departments in society, it will greatly improve the efficiency of supervision.
Therefore, the current regulatory authorities are also working hard to expand the scope of data collection, such as tax data, customs data, and even logistics data can be used as an important source of data to identify whether enterprises have violated laws and regulations. Only by integrating and integrating such data can we truly play the role of big data. Of course, this also requires a certain development process. China's current data sharing system and data sharing mechanism are still developing, but they have not yet reached the point of full maturity, so we still need to make continuous efforts to integrate more data into regulatory data to form a panoramic and over-coverage regulatory data system," Zhang Ye said.
Beijing Business Daily reporter Meng Fanxia Li Haiyuan
![Zhang Ye, general manager of Iphkes Company, went to the Wisdom Agricultural Cooperative for an exchange and discussion[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)