Regulatory innovation, fine before listing, and see which companies dare to go public fraudulently

Mondo Finance Updated on 2024-02-10

On February 9, according to the news of the China Securities Regulatory Commission, recently, the China Securities Regulatory Commission imposed administrative penalties on the illegal acts of fraudulent issuance in the process of applying for the initial listing of Shanghai Silxin Technology Co., Ltd. (hereinafter referred to as Silxin or the company) in the process of applying for the initial listing of the Science and Technology Innovation Board. This case is the first fraudulent issuance case investigated and handled by the CSRC after the issuer submits the application materials but before it is registered since the implementation of the new ** Law.

Silchip fabricated material falsehoods in the announcement, and inflated its operating income by a total of 1,536 in 2020720,000 yuan, with a total inflated profit of 1,246170,000 yuan, according to the new ** law, a fine of 4 million yuan was imposed on Silxin; Huang Xueliang, then chairman of Silcore, and Toshio Nakama, then director, chief executive officer and general manager of Silchip, were fined 3 million yuan respectively; Lin Kaipeng, then director and senior vice president of Silxin, and Xiong Shikun, then director, senior vice president and secretary of the board of directors of Silxin, were fined 2 million yuan respectively; Li Xiong, then chief financial officer of Silchip, should be fined 1.5 million yuan; Yang Lu, then chairman of the board of supervisors of Sierxin, was fined 1 million yuan.

Different from the previous punishment, this punishment occurred before the company went public, that is to say, someone dared to issue fraudulently, not only can not be listed, but also face a huge administrative fine, I have to say, this is really an innovative regulatory measure, to stop the fraudulent issuance of garbage companies out of the door, compared to some of the past painless punishment measures, perhaps this is the regulatory strength that should be.

With the deep integration of the global economy and the increasing openness of the capital market, the importance of ** as a bridge connecting investors and enterprises is self-evident. However, the existence of illegal acts such as fraudulent issuance seriously damages the fairness and transparency of the company and threatens the interests of investors. Recently, the first fraudulent issuance fine issued by the new chairman of the China Securities Regulatory Commission after taking office has undoubtedly sounded the alarm for the future development of the first country.

This event provides us with the following implications:

Strengthen supervision: As the regulator of the capital market, the China Securities Regulatory Commission (CSRC) should strengthen its review and supervision of listed companies to ensure fairness, impartiality and transparency in the market. The first fine for fraudulent issuance issued by the new chairman after taking office is a powerful declaration of strengthening supervision.

Strict law enforcement: The regulatory authorities should resolutely crack down on illegal acts such as fraudulent issuance, and never tolerate them. Through strict law enforcement, maintain the order of the market and the interests of investors.

Improve investor protection: investors are important participants, and protecting the legitimate rights and interests of investors is an important guarantee for the healthy development of investors. The regulatory authorities should further improve the investor protection mechanism, strengthen the education and guidance of investors, and improve investors' risk awareness and self-protection ability.

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