Wu Qing: Financial fraud against listed companies is by no means just "fined three glasses of wine", and some people will be imprisoned

Finance Associated Press

2024-06-19 09:42Published on the official account of Cailianpress, a subsidiary of Shanghai Poster Industry Group

Highlight the point

• 1

  The China Securities Regulatory Commission will launch the "Eight Articles of the Science and Technology Innovation Board". This reform will further highlight the "hard technology" characteristics of the Science and Technology Innovation Board.

• 2

  Actively embrace the development of new quality productivity, including improving the service coverage and accuracy of multi-level markets, and strengthening patient capital.

• 3

  Strengthen penetrating supervision, encourage "whistleblowers" to report, and consolidate the responsibilities of "gatekeepers" of intermediaries such as investment bank audits.

• 4

  Investors are the foundation of the market, and we must put strong supervision in a more prominent position, constantly improve supervision, strengthen supervision, and early identification, early warning, early exposure, and early treatment of all kinds of risks.

• 5

  Further guide listed companies to establish a sense of actively rewarding investors, and better use cash dividends, repurchase and cancellation to return to investors.

• 6

  The China Securities Regulatory Commission will work with relevant parties to actively create conditions to attract more medium and long-term capital into the capital market.

• 7

  Strengthen window time management, encourage "whistleblowers" to report, and consolidate the responsibilities of intermediaries such as investment bank audits.

• 8

  We will pursue the violations of laws and regulations in the delisting to the end, and we will never allow us to fish in troubled waters and withdraw from the market.

On June 19, the Associated Press of Finance reported that the two-day 15th Lujiazui Forum opened this morning, and Wu Qing, chairman of the China Securities Regulatory Commission, attended and delivered a speech.

The China Securities Regulatory Commission will launch the "Eight Articles of the Science and Technology Innovation Board"

The Science and Technology Innovation Board recently celebrated its fifth anniversary. Wu Qing, chairman of the China Securities Regulatory Commission, announced at the Lujiazui Forum held on June 19 that the China Securities Regulatory Commission will launch the "Eight Articles of the Science and Technology Innovation Board". This marks a new start for the reform of the Science and Technology Innovation Board.

Over the past five years, the reform effect of the Science and Technology Innovation Board and the registration system has been amplified. The reform will further highlight the "hard technology" characteristics of the Science and Technology Innovation Board, improve the institutional mechanisms such as issuance and underwriting, mergers and acquisitions, equity incentives, and transactions, and better serve the development of scientific and technological innovation and new productive forces.

Actively embrace the development of new quality productivity

Wu Qing said that actively embracing the development of new quality productivity includes improving the service coverage and accuracy of multi-level markets, strengthening patient capital, and solving the problem of inclusive innovation from the institutional mechanism and concept.

Strengthen the monitoring and supervision of high-frequency quantitative trading, over-the-counter derivatives and other trading tools

Wu Qing said that the largest market situation of small and medium-sized investors will be fully considered, and the monitoring and supervision of high-frequency quantitative trading, over-the-counter derivatives and other trading tools will be strengthened, and the pertinence and adaptability of supervision will be improved. We will keep a close eye on all kinds of behaviors that use the advantages of technical information to hold shares and other advantages to disrupt the market and make illegal profits.

Provide stronger support for investors to obtain compensation relief

Wu Qing said that he will further take the initiative to strengthen cooperation with judicial authorities and other aspects, better play the active role of insurance institutions, and promote the implementation of more cases such as securities special representative litigation, advance compensation, and party commitments, so as to provide more powerful support for investors to obtain compensation and relief.

Financial fraud of listed companies is a consistent focus of regulatory enforcement

Wu Qing said that financial fraud of listed companies is the focus of regulatory law enforcement, and it is also a problem that the market is very concerned about. The China Securities Regulatory Commission (CSRC) is working with relevant departments to further build a comprehensive punishment and prevention system, strengthen penetrating supervision, encourage "whistleblowers" to report, consolidate the responsibilities of "gatekeepers" of intermediaries such as investment banks and audits, and gather the joint efforts of inter-ministerial coordination and central and local coordination to improve the ability to detect, punish and prevent.

Persist in protecting investors throughout the entire process of capital market system construction and regulatory law enforcement

Wu Qing said that the China Securities Regulatory Commission will insist on protecting investors throughout the entire process of capital market system construction and supervision and law enforcement. He said that investors are the foundation of the market, and it is necessary to put strong supervision in a more prominent position, constantly improve supervision, strengthen supervision, early identification, early warning, early exposure, and early handling of all kinds of risks, constantly improve the internal stability of the capital market, strictly investigate and deal with all kinds of securities violations and crimes in accordance with the law, and earnestly safeguard the openness, fairness, and justice of the market.

Further guide listed companies to establish a sense of actively rewarding investors

Wu Qing said that it is necessary to further guide listed companies to establish a sense of actively repaying investors, strengthen communication with investors, improve information transparency and governance norms, and better use cash dividends, repurchase and cancellation to return to investors.

Attract more medium and long-term capital into the capital market

Wu Qing said that the patient capital will be strengthened. The China Securities Regulatory Commission will work with relevant parties to actively create conditions to attract more medium and long-term capital into the capital market, and optimize support policies for the whole chain around venture capital, private equity investment, and other fundraising, investment, management and withdrawal.

Targeted enrichment of capital market instruments, products and services

Wu Qing said that he will actively embrace the development of new quality productivity and improve the coverage and accuracy of multi-level markets. "The top priority is to deeply study the characteristics and development laws of relevant enterprises, as well as their needs in terms of investment and financing incentives and constraints, corporate governance, etc., and enrich the tools, products and services of the capital market in a targeted manner."

"Counterfeiters" and "cooperating counterfeiters" will be investigated and dealt with immediately

Wu Qing said that financial fraud of listed companies is the focus of regulatory law enforcement, and it is also a problem that the current market is very concerned about. The China Securities Regulatory Commission (CSRC) is working with relevant departments to further build a comprehensive punishment and prevention system, strengthen window time management, encourage "whistleblowers" to report, and consolidate the responsibilities of intermediaries such as investment bank audits. "Counterfeiters" and "cooperating counterfeiters" will be investigated and dealt with immediately, and criminal responsibility will be resolutely investigated for those involved in crimes.

Pursue the violations of laws and regulations in the process of delisting to the end, and never allow fishing in troubled waters and retreating

Wu Qing said that the CSRC has a very clear attitude towards the investor protection involved in the delisting, and must pursue the violations of laws and regulations to the end, severely punish the relevant responsible personnel in accordance with the law, and never allow them to fish in troubled waters and retreat.

Actively support Shanghai in building a world-class international financial center and support more foreign-funded financial institutions to operate in Shanghai

Wu Qing said that he will actively support Shanghai to build a world-class international financial center, promote the high-quality development of the stock and bond market, and better play the role of the futures and derivatives markets to promote the continuous improvement of Shanghai's price influence. Wu Qing pointed out that more foreign-funded financial institutions should be supported to do business in Shanghai, local institutions should be encouraged to make good use of Shanghai's development advantages, and first-class investment banks and investment institutions should be accelerated.

Protecting Investors Financial Fraud of Listed Companies Is Not Just About "Fines Three Glasses of Wine"

Wu Qing said that the China Securities Regulatory Commission will insist on protecting investors throughout the entire process of capital market system construction and supervision and law enforcement. He stressed that investors are the foundation of the market, so we must put strong supervision in a more prominent position, constantly improve supervision, strengthen supervision, early identification, early warning, early exposure, early treatment of all kinds of risks, and constantly improve the internal stability of the capital market, all kinds of securities violations and crimes must be strictly investigated and dealt with in accordance with the law, and effectively maintain the openness, fairness and justice of the market. There are voices in the market that some listed companies have committed serious financial fraud, and in the end they are only "fined three glasses of wine". Wu Qing said that the criminal prosecution of these cases is in progress, and it is by no means "three glasses of wine", and some people will go to prison.

Full text of the speech

Keynote speech by Wu Qing, Chairman of the China Securities Regulatory Commission, at the opening ceremony of the 2024 Lujiazui Forum