Yi Huiman, chairman of the China Securities Regulatory Commission, said in an exclusive interview with Xinhua News Agency recently that the capital market will improve the anti-counterfeiting mechanism, improve the administrative, civil and criminal three-dimensional accountability system, and "zero tolerance" to crack down on illegal activities such as fraudulent issuance, financial fraud, and market manipulation.
Industry experts said that the stable and healthy operation of the capital market requires supervision and law enforcement to grow "steel teeth", forward-looking and accurate containment of potential risks, and improve the effectiveness of rectifying the chaos in the capital market.
Strengthen the continuous supervision of listed companies
* The Financial Work Conference emphasized "comprehensively strengthening financial supervision". In addition to investigating and handling major cases, dealing with violations of laws and regulations found in daily supervision is also the focus of capital market supervision.
Taking the continuous supervision of listed companies as an example, the "strict tone" has not changed. For example, in the past month, more than 25 listed companies have been subject to administrative supervision measures, including administrative penalties, case investigations, warning letters, and corrections.
Some listed companies have been investigated for violations. On November 9, LONGi Green Energy announced that the company's shareholder HHLR Management received a notice of filing issued by the China Securities Regulatory Commission on November 8. The CSRC decided to file a case against HHLR on suspicion of violating restrictive provisions in the transfer of LONGi Green Energy**. In addition, the regulatory authorities also filed a case for investigation into the violations of Diwei shares, Feikai materials, Luoxin Pharmaceutical and other companies.
Some companies have been issued warning letters for abusive information disclosure. On November 29, Lotus Health and Chairman Li Houwen received a warning letter from the Henan Securities Regulatory Bureau for information disclosure violations. The regulatory authorities ordered the company to regularly report on the progress of the transformation of the computing power business on a monthly basis. According to the announcement, the China Securities Regulatory Commission decided to file a case against Simei Media on suspicion of illegal information disclosure. At the same time, the Zhejiang Securities Regulatory Bureau issued a warning letter to the company and its board secretary.
At the same time, financial fraud is also the focus of the regulatory crackdown. On December 1, the punishment results of the ST start-up fraud case were announced, and the company was fined 57 million yuan. According to *ST Jinglan's announcement, the listed company and the responsible person were fined 4.7 million yuan, and the reason for the violation was that its 2021 and 2022 annual reports showed off their "financial skills". In addition, *ST Huayi sounded the alarm of "major illegal refund" due to financial fraud.
This reflects the regulatory thinking and regulatory focus of the regulatory authorities for 'zero tolerance' for illegal acts. Zheng Yu, a professor at the School of International Financial Law of East China University of Political Science and Law, said that the market, as an integral part of the financial market, relies on the "credit" and "confidence" of various market participants to build a set of healthy and benign game rules in order to operate for a long time. At present, the series of measures of the regulatory authorities "with teeth and thorns" are in line with the core of the "credit market" and "confidence market", and are the powerful counterattacks and warnings of the regulatory authorities to deal with the trampling of market rules by illegal entities in the market, and convey the determination and confidence of the regulatory authorities to maintain the fairness and orderliness of the market and the healthy and sustainable development of the market.
Crack down on "pseudo private placements" and "fake gold exchanges".
Yi Huiman said that he will resolutely eliminate the regulatory vacuum. Strengthen regulatory coordination, bring all kinds of first-class activities into supervision in accordance with the law, severely crack down on "pseudo private placement", and clean up and rectify the gold exchange and "fake gold exchange".
According to the data, by the end of 2022, the China Securities Regulatory Commission, together with relevant parties, had inspected and verified more than 9,000 institutions, dealt with and punished nearly 1,400 institutions and responsible personnel, transferred nearly 250 suspected criminal clues such as illegal fundraising, and cancelled more than 20,000 private equity institutions that were "empty shells" and "lost contact", did not have the conditions for business development, and had serious violations.
At the same time, relying on the mechanism of inter-ministerial joint meetings to clean up and rectify various trading venues, the China Securities Regulatory Commission, together with relevant departments, supervises all localities to further promote the special rectification of the gold exchange. The number of gold exchanges and the scale of business have dropped sharply, the momentum of disorderly expansion has been curbed, and the risks tend to converge.
Lu Zhe, deputy director and chief macroeconomist of Founder Research Institute, believes that cracking down on "pseudo private placement" and "pseudo gold exchange" will help eliminate regulatory gaps and regulatory blind spots, cover all kinds of ** activities, curb potential financial risks, help the healthy and stable operation of the capital market, and effectively protect the legitimate rights and interests of investors. At the same time, improving the deterrent effect of administrative penalties will also help enhance the awareness of compliance and risk control in relevant industries and promote the standardized operation of the industry.
Improve the adaptability and pertinence of supervision
Yi Huiman said that strengthening supervision and preventing risks is an important guarantee for high-quality financial development. In the next step, the China Securities Regulatory Commission will focus on improving the adaptability and pertinence of supervision to create a more favorable environment for the reform and development of the capital market.
It is reported that the China Securities Regulatory Commission will further strengthen the supervision of listed companies, and will combine the new market situation to further strengthen the organic connection of daily supervision, inspection and punishment, improve the efficiency of clue discovery and case handling, and concentrate on investigating and prosecuting major cases of market concern and bad nature, such as fraudulent issuance, financial fraud, market manipulation, insider trading, etc., consolidate the main responsibility of listed companies, launch the construction of corporate governance with Chinese characteristics, and improve the quality of listed companies.
At the same time, the regulatory authorities will insist on eliminating regulatory gaps and blind spots, continue to strictly supervise and crack down, deal with private equity violations in accordance with the law, strengthen inter-ministerial linkage and central and local coordination, and further promote the disposal of the gold exchange.
Zheng Yu said that after more than 30 years of development of the capital market, the early warning, investigation and punishment process of supervision has been continuously optimized, the efficiency of law enforcement has been continuously improved, and the linkage mechanism of civil, administrative and criminal has also been optimized. The "cat and mouse" game of regulation and regulation will always exist, but as the ability of cat and mouse to catch mouse becomes stronger and stronger, it is believed that there will be fewer and fewer "illegal rats" in the market, and they will hide in the shadows and be afraid.
Original**: Shanghai **Daily.