Securities Regulatory Commissions 12 Articles of Open Capital Market Reform: Six Points of View

category:Finance
 Securities Regulatory Commissions 12 Articles of Open Capital Market Reform: Six Points of View


From September 9 to 10, the SFC held a symposium on deepening capital market reform in an all-round way, analyzed the situation, studied and laid out key tasks for deepening capital market reform in an all-round way, and Yi Huiman, secretary and chairman of the SFC Party Committee, delivered a speech at the symposium.

Recommended Reading: Written by Yi Huiman Peoples Daily: Accelerating the Reform and Opening-up of Capital Market

The meeting put forward 12 key tasks to comprehensively deepen capital market reform at present and in the future, including:

1. Give full play to the role of the experimental field of traumatic plate. We should adhere to the orientation of the innovation board, optimize the linking mechanism between audit and registration, and maintain the reform. Summarize and popularize the effective institutional arrangements of the Branch Creative Board, steadily implement the registration system, and improve the market-based system.

2. Promote the listed companies to improve their quality. We should formulate and implement plans of action to improve the quality of listed companies, effectively control the entry and export barriers, and strive to optimize increments and adjust stocks. Strictly control the quality of IPO audit, give full play to the role of the main channel of capital market merger and acquisition, smooth diversified exit channels, and promote the survival of listed companies. We will optimize the system of reorganization, listing and refinancing, and support the pilot market splitting. Strengthen the continuous supervision, classified supervision and precise supervision of listed companies.

3. Complete the shortcomings of the multi-level capital market system. We will promote the GEM reform, accelerate the new three-board reform, and select a number of regional equity markets to carry out institutional and business innovation pilot projects. High-quality securities firms are allowed to expand their counter business. We will vigorously develop private equity investment. We will promote the innovation of bonds and asset-backed securities in the exchange market. Enriching futures and options products.

4. Strengthen the capacity-building of intermediary institutions. We will speed up the construction of high-quality investment banks, improve differentiated regulatory measures, support innovative quality improvement of high-quality securities firms, and encourage the development of small and medium-sized securities firms with distinctive quality. Promote public offering institutions to vigorously develop equity funds. Compact the responsibilities of intermediaries and promote the construction of industry culture.

5. Accelerate the opening of capital market at a high level. We should implement the announced measures of opening up to the outside world and safeguard financial security in an open environment.

6. Promote more medium and long-term funds to enter the market. Strengthen the long-term performance orientation of securities fund management institutions and promote the classified supervision of public fund managers. We will promote the relaxation of the proportion and scope of various medium- and long-term funds entering the market. Promote public funds to be included in the scope of individual tax deferred commercial pension investment.

7. Resolve the risks in key areas such as stock pledge, bond default and private equity fund.

8. Further increase the supply of rule of law. We will accelerate the revision of the Securities Law and the Criminal Law, and substantially increase the illegal costs of fraudulent issuance, false information disclosure of listed companies and false certification documents provided by intermediaries. We should make good use of the existing legal system, adhere to strict law enforcement and enhance supervision deterrence.

9. Strengthen investor protection. We will promote the establishment of a securities collective action system with Chinese characteristics. Explore the establishment of administrative fines and forfeiture priority system for investor relief. Promote the revision or formulation of judicial interpretation of civil compensation related to false statements, insider trading and market manipulation.

10. Improve the efficiency of inspection and law enforcement. We should strengthen the hierarchical, classified and graded management of cases, concentrate our efforts on investigating and dealing with major cases such as fraud and fraud, and improve the efficiency of investigating and dealing with cases.

11. Vigorously promote simplification and decentralization of government. We should streamline the examination and approval filing matters, optimize the examination and approval filing process and improve the transparency of supervision. Strengthen supervision after the event.

12. Accelerate the improvement of the ability of science and technology supervision. Promote the deep integration of science and technology and business, and enhance the scientific and intelligent level of supervision.

Viewpoint 1: Analyse the current situation to ensure that the reform is carried out in a stable market environment.

Since the late March of this year, Yi Huiman has attached great importance to related work. The SFC has established a leading group on the comprehensive deepening of capital market reform and formulated corresponding working mechanism. The SFC Party Committee has held more than ten special meetings to study specific reform measures one by one, and the overall reform plan is basic. Forming.

This conference is a deep study of the spirit of Xi Jinpings important instructions and instructions on capital market, the implementation of the seventh meeting of the Financial Stability and Development Committee of the State Council, the national financial situation bulletin and the work experience of the AC Telephone Conference on the deployment of the reform list, and the current situation of capital market has also been studied. Judgment, we can see that the regulatory authorities will balance the strength of reform and market sustainability, and promote various reforms in a basically stable market environment.

Point 2: Steady implementation of registration system and improvement of market-based system

From July 22, the first batch of enterprises listed on the board to now, the board has been running smoothly. Since its establishment, the Securities Regulatory Commission (SFC) has indicated that it is necessary to give full play to the role of SFC as a test field, sum up experience that can be replicated and popularized, accelerate key institutional innovation, and promote the comprehensive deepening of capital market reform and healthy development. The implementation of registration system impels the improvement of audit system. From the inquiry content of the DARC, the new DARCs IPO audit policy basically continues the previous direction, and the scope of inquiry is broader, the angle of inquiry is more diversified, and more attention is paid to the details of information disclosure, corporate governance, operation norms and conformity of enterprises. Industry standards, etc.

Shao Yu, chief economist of Oriental Securities, said that strengthening the top-level design of capital market through the innovation of science and technology can better leverage the reform of financial system. Reform experience can also be extended to other sectors, and raising the proportion of direct financing represented by equity financing will help to reduce the leverage of real economy. Promote and support the better formation of innovative venture capital.

Point 3: Strictly control the quality of IPO auditing and smooth diversified exit channels

The meeting pointed out that we should vigorously promote listed companies to improve their quality. We should formulate and implement plans of action to improve the quality of listed companies, effectively control the entry and export barriers, and strive to optimize increments and adjust stocks. Strictly control the quality of IPO audit, give full play to the role of the main channel of capital market merger and acquisition, smooth diversified exit channels, and promote the survival of listed companies. We will optimize the system of reorganization, listing and refinancing, and support the pilot market splitting. Strengthen the continuous supervision, classified supervision and precise supervision of listed companies.

Yi Huiman has repeatedly mentioned in public that we should promote the quality of listed companies, requiring listed companies to respect the market, respect the law and take the path of sound and compliance development; revere the rule of law, abide by the rules, strengthen the spirit of good faith contract; revere profession, highlight the main business, consciously keep away from market chaos; revere investors, return investment. Capitalists should actively practice equity culture. It also requires listed companies and major shareholders to firmly adhere to the four bottom lines: one is not to disclose false information, the other is not to engage in insider trading, the third is not to manipulate stock prices, and the fourth is not to harm the interests of listed companies.

As far as IPO auditing is concerned, the passing rate of IPO auditing by the 18th Development and Examination Commission has exceeded 80% so far this year, and there are nearly 500 IPO queuing enterprises. At present, the on-site inspection of IPO enterprises is being carried out by the SFC, mainly to check whether the working manuscript is compliant and the financial situation, so as to effectively strengthen the supervision of enterprises applying for IPO. We should supervise and urge intermediaries to practice diligently and prudently so as to improve the quality of listed companies from the source.

As for delisting, the number of A-share delisting companies has reached 10, a new high in recent years. Fraudulent withdrawal, illegal withdrawal, performance withdrawal, disgrace withdrawal, active withdrawal and restructuring withdrawal are emerging in endlessly. While the normalization of IPO in A-share market, delisting is also moving towards normalization.

Point 4: Promoting the GEM Reform and Accelerating the New Third Board Reform

The meeting mentioned that we should make up for the shortcomings of the multi-level capital market system. We will promote the GEM reform, accelerate the new three-board reform, and select a number of regional equity markets to carry out institutional and business innovation pilot projects. High-quality securities firms are allowed to expand their counter business. We will vigorously develop private equity investment. We will promote the innovation of bonds and asset-backed securities in the exchange market. Enriching futures and options products.

Zhang Anyuan, chief economist of CITIC Construction Investment Securities, said that the successful pilot of the registration system of GEM undoubtedly has important reference significance for the next reform of GEM, and hoped that the relevant measures of GEM could be launched as soon as possible. Xu Ming, general manager of the National Stock Exchange Corporation, suggested that the new three-board market should be differentiated in terms of investor appropriateness. At present, the threshold for investor appropriateness in the new three-board market is 5 million yuan of financial assets. Xu Ming believes that this higher threshold for investors is difficult to meet the needs of the current development of the new three-board market, not only to the extent that it must be changed, but also the new three-board market has a realistic basis for lowering the threshold for investors.

The meeting also pointed out that the capacity-building of intermediary institutions should be strengthened. We will speed up the construction of high-quality investment banks, improve differentiated regulatory measures, support innovative quality improvement of high-quality securities firms, and encourage the development of small and medium-sized securities firms with distinctive quality. Promote public offering institutions to vigorously develop equity funds. Compact the responsibilities of intermediaries and promote the construction of industry culture.

Point 5: Increase the cost of illegal acts such as false certificates provided by intermediaries by a large margin

The meeting indicated that the supply of rule of law should be further increased. We will accelerate the revision of the Securities Law and the Criminal Law, and substantially increase the illegal costs of fraudulent issuance, false information disclosure of listed companies and false certification documents provided by intermediaries. We should make good use of the existing legal system, adhere to strict law enforcement and enhance supervision deterrence.

With the increasing resilience of Chinas capital market to external shocks, the revision of the securities law and the further improvement of the criminal law, it is a general trend to increase the punishment of violators, refine, adjust and simplify the investor compensation mechanism. Under the circumstance of imperfect market law, the punishment for violating regulations of some investors, market securities issuers and intermediary service institutions has long relied on administrative means. However, the current laws and regulations impose too light administrative penalties on financial irregularities, and the low criminal accountability rate leads to low illegal costs, which seriously divorces from the reality of capital market supervision, and can not make some fraudulent listed companies fear the rule of law because of the deterrence of the law. Moreover, in the face of financial fraud and other violations of laws and regulations of listed companies, the regulatory authorities are unable to control the legal provisions.

The Securities Law is in the process of revision. According to the previous regulators, the revision of the law will be completed in the coming year, and the cost of violating the law will be greatly increased. Article 209 of the third reading draft of the Securities Law published in April this year stipulates that if the report or information disclosed by the obligor of information disclosure contains false records, misleading statements or major omissions, it shall be ordered to make corrections, given warnings and fined not less than 500,000 yuan but not more than 5 million yuan. The person in charge and other persons directly responsible shall be warned and fined not less than 100,000 yuan but not more than 1 million yuan.

In terms of investor protection, the meeting mentioned the need to strengthen investor protection. We will promote the establishment of a securities collective action system with Chinese characteristics. Explore the establishment of administrative fines and forfeiture priority system for investor relief. Promote the revision or formulation of judicial interpretation of civil compensation related to false statements, insider trading and market manipulation. Improve the efficiency of inspection and law enforcement. We should strengthen the hierarchical, classified and graded management of cases, concentrate our efforts on investigating and dealing with major cases such as fraud and fraud, and improve the efficiency of investigating and dealing with cases.

Point 6: Schedule, roadmap, priorities

It can be expected that the SFC will refine the reform tasks, set out the reform objectives and rules, and implement the specific responsible departments to promote the implementation of the reform plan as soon as possible.