Ma Fangye China** at the beginning of 2024 once again encountered the irrationality of the thousand-share drop limit**. It's really a serious crisis node! In the face of the crisis, under the unified leadership of the ** Financial Working Committee, the China Securities Regulatory Commission spoke intensively and acted quickly. Before the Spring Festival, the market reported a "rise", and the stock index quickly stopped the bleeding with the trend of "Sanyang Kaitai", which basically stabilized the confidence of investors. In order to further consolidate this hard-won confidence that is more precious than the first one, the China Securities Regulatory Commission took advantage of the rare before the Spring Festival.
During the window period of two or three working days, we have seen the root cause of the chaos in the capital market, grasped the bull's nose to resolve the problem, and intensively launched an iron fist, thus safeguarding the fairness and justice of the market and promoting the spirit of the rule of law. It can be said that the regulatory punch is reshaping the clear space of China's **. First of all, let's talk about the novelty of the 10 million yuan fine of Sierxin. This case is the first fraudulent issuance case investigated by the CSRC since the implementation of the new ** law, after the issuer submits the application materials but before it is registered. The handling of such cases has obviously changed the practice of "small punishments and big admonitions" in the past, and embodies the requirements and spirit of financial supervision to be "long teeth and thorns" and "angular and angular", so it is of benchmarking significance. Here, the Silxin case warns all parties in the market that if an IPO company dares to "break through with illness", the China Securities Regulatory Commission will definitely take a ruthless action and impose a heavy fine, which must be a swift and vigorous punishment. At the same time, it also reminds all parties in the market that the full implementation of the registration system and the right to choose will not mean that the quality requirements will be relaxed. IPO application enterprises should not only emphasize quality, but also emphasize high quality. The CSRC's rules on "taking responsibility when reporting, pursuing responsibility when found, and prosecuting after withdrawal" are a guarantee for high-quality reporting enterprises. Although the listing of Silxin failed, it was still responsible and was still fined. This new thing in China is not only conducive to the entry of IPOs, but also a firm maintenance of the full implementation of the issuance registration system. Of course, it is not advisable to emotionally suspend IPOs and expand IPOs in disregard of the market tolerance of more than 200 million small and medium-sized investors. The author also wants to emphasize here that it is an indispensable and important premise to do a good job in the first-class issuance registration system, to make the registration system deeper and more practical, and to put the strict punishment and strict law in the forefront. Secondly, let's talk about the CSRC's New Year's No. 1 fine, which respects the rule of law. The first fine issued by the China Securities Regulatory Commission in 2024 held Ruihua Certified Public Accountants (Special General Partnership) (hereinafter referred to as Ruihua) accountable for providing a standard unqualified audit report for Kangdexin's financial fraud from 2015 to 2017. Both the firm and the auditors were penalized, with a total fine of 1,809020,000 yuan. It warns all parties in the market that the regulator will never let go of the capital market intermediaries, especially the audit institutions, under the registration system. As we all know, financial authenticity is an important cornerstone of the capital market, and financial fraud not only undermines the foundation of market integrity, seriously infringes on the legitimate rights and interests of investors, but also makes investors unable to judge the quality of enterprises and distorts the market's ability to allocate resources. Therefore, the role of the auditor as the "gatekeeper" of the capital market is extremely important. After careful observation, the author also found that although the China Securities Regulatory Commission imposed heavy fines on Ruihua, after the Kangde Xin case, Ruihua was fined many times. As a result, it has long since run out of executable assets and is therefore effectively "bankrupt". However, you always have to pay it back when you come out to mix. Previously, there was a precedent in China that Yang Moumou, the signing accountant of Kangmei Pharmaceutical, was sentenced to pay more than 50 million yuan in fines and confiscations, which undoubtedly has a greater legal deterrent effect for accounting firms and accountants that adopt the partnership system, including Ruihua. At the same time, the author also found that the decision to impose a heavy penalty was made on the basis of a retrospective examination of the situation many years ago. Therefore, this is far from being explained by a simple fine, and the signals such as legal deterrence and reverence for the rule of law are of strong significance. Perhaps in the future, with the improvement and optimization of the law, as well as the further improvement of the deterrent effect of the regulatory sword, it is not impossible for such cases to be punished in the near future by comparison with the Enron incident. This once again reminds all listed companies, securities firms, accountants and law firms involved in the issuance of new shares that they must strictly abide by laws and regulations, truthfully disclose information, and must not commit any fraud or violations. Third, in addition to talking about rectifying the IPO chaos and requiring the "gatekeepers" to be diligent and conscientious, let's now talk about the CSRC's heavy blow to the insider trading and illegal activities of the practitioners: focusing on the investigation and prosecution of the violation of laws and regulations by the former vice president of the Great Wall and the trading of 63 employees of the Great Wall. Punishment and punishment of a group of violators is not big news for the capital market, but after observation and analysis, everyone may feel that this time is obviously different: in terms of the amount of fines and confiscations, the former vice president of the Great Wall ** Han Mou violated the ** fine and confiscation of nearly 1200 million yuan;The 63 "internal ghosts" of China Merchants ** were fined and confiscated for collective violations of 81.73 million yuan. In 17 years, Han has traded more than 4 billion yuan in turnover, and the illegal income has reached more than 58 million yuan. Nearly 1The fine and confiscation of 200 million yuan can be said to have made Han almost bankrupt. A more severe punishment was that Xiong, the then executive director and president of China Merchants **, was banned from the ** market for life, and Han, the former vice president of Great Wall **, was also banned from the market for 10 years. In fact, these initiatives have largely ruined their respective careers. In addition, the punishment of Han and Ruihua also has similarities, that is, the "reverse investigation" method is adopted. Judging from the punishment decision, Han's involvement in the case was from February 2005 to April 2022. From the perspective of time, Han was checked for 17 years and 2 months. Such a level of regulation is unprecedented. Accountability and punishment, three-dimensional punishment, and since then. "Fish multiply the water, birds multiply the wind, and plants multiply the time". Under the unified leadership of the Financial Working Committee, we sincerely expect the regulatory authorities to make full use of the abnormal fluctuations in the capital market before the holiday, give full play to the two-way role of "effective market" and "promising supervision", continue to make rules with an iron fist, reform with iron blood, and continue to use the strong supervision of "long teeth and thorns" to open up a larger clear space for China's capital market, and continue to build a high-quality and healthy capital market based on investors in the continuous release of dividends. Only in this way, the capital market is fortunate, the country is fortunate, and the people are blessed!
* |Crafting |Zhou Wenrui