Strict investigation and punishment of "flickering repurchase", strict investigation of suspected unauthorized change of the use of raised funds and other violations of laws and regulations, and rectification of listed companies' "hot spots", * transactions, etc., are the focus of strict supervision by relevant departments in the near future. Recently, a listed company listed on the Shenzhen ** Stock Exchange was issued the "Decision on Administrative Supervision Measures" by the regulatory authorities because of its commitment to repurchase the company's shares, but it was not implemented after a year when the company's books were full. * The supervision and management department shall take administrative supervision measures against the company and record the relevant violations in the integrity file. On the same day, the Shenzhen Stock Exchange also issued a letter of concern to the listed company on this matter, and stated that it would initiate disciplinary proceedings against the company and related violators.
As an important force to participate in the capital market, listed companies can use real money to repurchase companies, which can convey positive information to the market, help stabilize market sentiment, guide market expectations, activate market investment, and play an active role in maintaining the smooth operation of the market. Generally speaking, the release of news about the repurchase of shares by listed companies, including the repurchase and cancellation of equity incentive shares, is often conducive to the company's rise and attracted the attention of many investors. However, there are always some listed companies, only thunder and no rain, but after the release of repurchase information, they have not put it into practice, purely to fool the market.
The capital market should be an honest market, and the "flickering repurchase" will be cracked down. The China Securities Regulatory Commission has clearly required that no one shall use share repurchase to engage in insider trading, market manipulation and other illegal acts, and shall not damage the legitimate rights and interests of the company and investors through "benefit transfer" and "flickering repurchase". The revised draft of the Rules for Share Repurchase of Listed Companies clearly requires strict supervision and strict restraint on "flickering repurchases", including preventing listed companies and relevant entities from carrying out illegal acts such as stock price manipulation and insider trading with the help of repurchases. At the recent commendation and reward meeting for inspection and case handling, the China Securities Regulatory Commission once again emphasized maintaining the "strict tone" of capital market supervision.
It is the proper meaning of listed companies to be honest and trustworthy and bid farewell to foolish behavior, and once they are untrustworthy, they will pay the price, and the gains outweigh the losses. The regulatory authorities are focusing on all kinds of violations of laws and regulations of problem companies through the measures of "teething and thorns", and the supervision and management department is continuously increasing the punishment of the responsible personnel related to the "flickering repurchase". For the violation of relevant regulations by listed companies and related parties, ** Exchange may take self-regulatory measures or impose disciplinary sanctions according to the circumstances. If there are illegal acts such as stock price manipulation and insider trading through repurchases, they may also be subject to criminal prosecution.
The hard measures of "long teeth and thorns" in financial supervision will help promote the "promises" of all business entities. All listed companies should consciously and strictly fulfill their commitments, achieve "one promise", and consciously maintain an honest and trustworthy market environment. As the regulator continues to strengthen the responsibilities of listed companies and other related entities, there is an obvious "pain" for those who violate laws and regulations, which is of great significance for maintaining the stability of the secondary market and protecting the legitimate rights and interests of small and medium-sized investors. (This article**: Economy** Author: Peng Jiang).