In the future, financial fraud in A-shares may lead to the destruction of the family and the imprisonment.
On December 28, the Supreme People's Procuratorate issued the "Opinions on Giving Full Play to the Role of Procuratorial Functions and Serving and Ensuring the High-quality Development of Finance in accordance with the Law", focusing on increasing the punishment of financial crimes in areas with high financial risksCrack down on financial fraud, market manipulation and other crimesResolutely punish financial corruption crimes, punish financial crimes with precise and effective criminal prosecutions, deter financial crimes, and prevent financial crimes.
There are two most important things for the healthy development of a capital market: first, the market has rules, the information is open and transparent, and the rat feces such as financial fraud, rat traps, and benefit transfer are cleaned up. If the financial statements obtained are fake, then there is no point in analyzing the data and value, and a capital market becomes a fraud market.
Second, the interests of small and medium-sized investors are guaranteed, and the returns of investors in the entire market are reasonable. If a capital market only talks about financing and coexistence, but does not talk about returns and symbiosis, then a capital market will become a fraud market.
As long as the market can make money, and capital does not need encouragement, it will flock to it, and more companies will be able to raise funds. On the contrary, everyone does not make money, and the chaos is thick, so the funds will wait and see, or even run away, save the market today, defend tomorrow, press the gourd to float the scoop, and all kinds of problems emerge in endlessly.
An important reason for the sluggishness of A-shares over the years is the fraudulent listing of new shares, and the regulatory punishment is a fine of 600,000+ notice of criticismThe huge asymmetry between potential benefits and penalties is, to be honest, essentially an encouragement of counterfeiting.
In the fight against financial fraud, there are three things worth remembering in 2023.
The first pieceAmethyst storageDelisting due to fraudulent issuance, intermediaries pay 1100 million yuan commitment.
The China Securities Regulatory Commission (CSRC) announced on December 29, 2023 that the persons suspected of criminal offenses in the Amethystum Storage Fraudulent Issuance Case have been transferred to the public security organs for handling (the procuratorate has now approved the arrest), and the "first evil" has been severely punished and held accountable in all directions.
At the same time, the four intermediaries involved in the case, China Securities Construction Investment, Grant Thornton Certified Public Accountants (Special General Partnership), Rongcheng Certified Public Accountants (Special General Partnership), and Guangdong Hengyi Law Firm, submitted an application to the China Securities Regulatory Commission for the application of the commitment system of administrative law enforcement parties, and according to the commitment recognition agreement, the four intermediaries should pay 127.5 billion yuan of commitment, of which about 10 has been compensated for investors' losses through the advance compensation procedure in the early stage8.6 billion yuan.
Amethyst storageThe case isIt is of great significance that the system of undertaking by parties to administrative law enforcement is applied for the first time
Those who should go to jail have also been imprisoned, the commitment money that should be paid has also been promised, and the losses of small and medium-sized shareholders have been compensated. The fly in the ointment is that, referring to the United States, there are still too few people in prison for financial fraud, the fines are still too few, almost none, and the sentences are still not enough. If intermediaries such as China Securities Construction Investment are fined to bankruptcy because of this financial fraud, and the relevant participants are sentenced to more than 10 years in prison, more national pillars of planned financial fraud will be saved.
For a long time, I have not been interested in the brokerage industry, which has scary high salaries, but has not created due value for shareholders, and the business has been on the edge ......of various laws all year round
The second pieceZeda Yisheng was finally delisted due to serious fraudulent listing
On December 26, the Shanghai Financial Court heard the case of investors v. Zeda Yisheng, a listed company on the Science and Technology Innovation Board, and 12 defendants, including the actual controller, executives, and intermediaries, and the dispute over the liability for false statements, which was concluded through mediation. China Securities Small and Medium-sized Investor Service Center Co., Ltd., on behalf of 7,195 qualified investors, won 2More than 800 million yuan in full compensation.
The Zeda Yisheng case is the first class action settlement case in ChinaIt is also the first case in China involving a special representative lawsuit of a listed company on the Science and Technology Innovation Board.
Many people are unaware of China's ** class action system, and even think that China does not have a ** class action system, in fact, after the ** Law revised in 2019 established a ** class action system with Chinese characteristics, there have been a number of cases with greater influence.
For example, in the first class action lawsuit "Kangmei Pharmaceutical Case", the court ruled that Kangmei Pharmaceutical Co., Ltd. should compensate investors for losses of 24 for the infringement of false statements such as annual reports5.9 billion yuan, the former chairman and general manager Ma Xingtian and 5 directly responsible personnel, Genzon Zhujiang Certified Public Accountants and directly responsible personnel bear all joint and several liability, and 13 relevant responsible personnel bear part of the joint and several liability according to the degree of fault.
Third, the former chairman of Zhangzidao was sentenced to 15 years in prison.
On December 28, 2023, the Supreme People's Procuratorate held a press conference on "giving full play to the role of procuratorial functions and serving to ensure high-quality financial development in accordance with the law", and simultaneously released the 2023 financial supervision work case examples, and Zhangzidao was prominently listed.
In October 2022, the Dalian Intermediate People's Court made a judgment and sentenced the defendant Wu Moumou for the crimes of illegal disclosure of important information, fraud, collusion in bidding, and bribery of non-state employeesIt was decided to enforce the sentence of 15 years imprisonment and a fine of 920,000 yuan；Eleven other accused were sentencedFixed-term imprisonment ranged from 11 years to one year and seven months(probation applied in part) and a fine.
Although the above three cases are still far from the severity of the United States' handling of financial fraud, and have not yet reached the level of "bankrupting the family and sitting in prison", they are still a huge improvement compared with the past.
As investors, we should not go against the grain, attribute everything to our own bad luck, let the bullies go unpunished, encounter illegal operations of listed companies, financial fraud, illegal information disclosure and other violations of their own rights and interests, should be decisively reported, maybe one or two people report is not very useful, but a hundred people and two hundred people report must be useful, our market environment will get better and better.
The market will open tomorrow, and in the new year, I hope that A-shares will not disappoint the shareholders who still have expectations for it!