The securities market, the micro embodiment of the economy, is also a game of wealth. Among them, the retail compensation system is known as the golden rule to save the market, especially the compensation mechanism for illegal delisting, which plays a pivotal role in the capital market.
Illegal delisting, a capital tragedy, is a pain in the hearts of countless retail investors. Once, those controlling shareholders reduced their holdings and left, leaving behind the inflated stock price maintained by financial fraud, and finally the East Window incident occurred, and the company was seized by the management, resulting in delisting. Retail investors have lost all their money, while those major shareholders have fled with huge sums of money and are at large. How bleak and unjust is this situation!
Against this backdrop, the retail compensation system came into being. This is a contest between good and evil, and this is a battle to maintain market fairness. The retail compensation system is like a sharp sword, cutting off the arms of those who violate the rules, so that they can no longer continue to wreak havoc on the market. Illegal delisting should have been a consequence shared by all shareholders, not just retail investors.
Controlling shareholders, reducing their holdings and leaving, and financial fraud, these behaviors have long violated the basic rules of the market and undermined the fairness of the market. Therefore, they should pay a heavy price for it. Fines some money and two years in it, such a punishment is just a drop in the bucket for them, and it can't really have a deterrent effect. Only by strictly implementing the retail compensation system and allowing those who violate the law to truly feel the pain can we effectively curb this bad behavior.
Mainland regulators have realized this, and in recent years, they have been continuously improving the retail compensation system and stepping up the crackdown on violations. For example, in 2019, the mainland introduced a "delisting consolidation period" system to protect the rights and interests of retail investors, so that retail investors have more time and opportunities to escape risks before delisting. The mainland has also strengthened its supervision of foreign investment to prevent it from manipulating the market by taking advantage of illegal activities.
Saving the market doesn't happen overnight. The establishment and improvement of the retail compensation system takes time and effort. We need to further strengthen regulation and crack down on non-compliance, so that those who seek to undermine market fairness have no place to hide. At the same time, we need to improve the quality of retail investors so that they can better identify risks and avoid becoming "victims" of violators.
We also need to strengthen the awareness of the rule of law and make the law the guardian saint of the market. Only by governing the country according to law can the market truly be fair, just, and open. In this process, the retail compensation system will play a crucial role in injecting strong impetus into maintaining market fairness.
There is still a long way to go to save the market. The establishment and improvement of the retail compensation system is only part of it. However, we believe that as long as we strengthen our confidence and continue to work hard, we will be able to create a fair, just and open capital market, so that the seeds of wealth can thrive in the market and the dreams of retail investors can soar here.
In the future, we will further strengthen the retail compensation system to make those who violate the rules pay the price they deserve. At the same time, we will also strengthen the supervision of the market to protect the wealth of every investor. In this promising market, let's work together to create a better future.