It can be seen that several works in the above statements have always been in the on-going, and the reform direction proposed by CSRC before is also in line with it.
From September 9 to 10, 2019, China Securities Regulatory Commission held a symposium on comprehensively deepening the reform of capital market in Beijing. Focusing on the overall goal of building a standardized, transparent, open, dynamic and resilient capital market, the conference deployed 12 key tasks of comprehensively deepening the reform of capital market at present and in the future, including steadily implementing the registration system and improving the market foundation System, vigorously promote the quality of listed companies, smooth and diversified delisting channels, and promote the survival of the fittest.
How to promote the construction of capital market basic system? How is the current landing progress? Surging journalists combed the four key points of the opinions and the latest progress of relevant reforms.
Key point 1: promote the reform of registration system
On the basis of the successful implementation of this incremental reform, the stock reform is also launched.
The CSRC pointed out in the system work meeting in 2020 that it should take the reform of registration system as the leading role and make great efforts to tackle the major reform. We will steadily advance the reform of the registration system with information disclosure as the core. We will strive to run the science and technology innovation board well, and support and encourage more hard technology enterprises to go public. We will steadily launch the gem reform and pilot the registration system.
On April 27, 2020, China Securities Regulatory Commission (CSRC) and Shenzhen Stock Exchange (SZSE) successively issued a number of gem reform plans, which are currently seeking opinions from the public. The person in charge of Shenzhen Stock Exchange recently said that the gem reform and pilot registration system is a major exploration in the construction of a multi-level capital market system, and a profound change in the development concept, supervision ideas and audit methods of the stock market. We should not only grasp the connection between the new and old systems, promote market reform in no sense, and ensure the smooth implementation of the reform, but also let all participants, including more than 800 listed companies and more than 45 million investors, have sense in the reform, and continue to enhance the sense of reform.
In an open speech on May 5, chairman of the CSRC, Yi Huiman, said that the reform of registration system is the general principle of this round of capital market reform and a major reform that takes one lead and moves the whole body. We must adhere to the principle of seeking progress in stability and step-by-step implementation, especially the active participation and joint promotion of all parties in the market. We have already experimented with incremental registration system reform in the science and technology innovation board, and accumulated some experience. At present, we are experimenting with the registration system reform in the stock market of the growth enterprise board. Next, we will steadily achieve the goal of registration system reform in the whole market in stages on the basis of summary and evaluation.
Shenzhen Stock Exchange said it will work from four aspects. First, it will stick to its positioning, adhere to the principle of optimal increment and stable stock, serve growth oriented innovation and entrepreneurship enterprises, and support the transformation and upgrading of traditional industries. Second, it will severely punish counterfeiting, resolutely crack down on financial fraud and fraudulent issuance and other illegal behaviors, maintain market discipline and order, ensure the two levels of import and export, and promote the quality of listed companies; The third is to stabilize expectations, give full play to guiding forces, respond to market concerns, gather consensus on reform, and jointly create a good public opinion atmosphere for reform; the fourth is to prevent risks, strengthen the construction of work style, strengthen the sense of responsibility, strictly abide by the bottom line of safe operation, zero tolerance for operational risks, and ensure the stability and farsightedness of gem reform.
Key point 2: improve delisting system
It is one of the 12 reform directions of the CSRC to open and diversify delisting channels and promote the survival of the fittest in listed companies.
Delisting system of listed companies is an important basic system of capital market. On the one hand, based on the consideration of realizing the development strategy, maintaining the reasonable valuation, stabilizing the control right and cost-benefit law, the listed company believes that it is no longer necessary to maintain the listing status, or to maintain the listing status is no longer conducive to the development of the company, and can actively apply to the stock exchange for the termination of its stock trading. On the other hand, in order to maintain the overall quality and market confidence of publicly traded stocks and protect the legitimate rights and interests of investors, especially small and medium-sized investors, the stock exchange may, in accordance with the rules, terminate the trading of stocks that are inactive in trading, unreasonable in equity distribution and low in market value and no longer suitable for public trading, especially for companies with serious violations of laws and regulations The law forces its shares to withdraw from the market.
Further reform, improvement and strict implementation of the delisting system are conducive to improving the functions of the capital market, reducing market operating costs, enhancing the vitality of market players, improving market competitiveness, achieving the survival of the fittest, punishing major illegal acts, guiding rational investment, and protecting the legitimate rights and interests of investors, especially small and medium-sized investors.
In July 2018, the CSRC issued the decision on Amending several opinions on reform, improvement and strict implementation of delisting system of listed companies, which improved the delisting system from three aspects.
First, improve the main circumstances of major illegal compulsory delisting, and clarify the basic system of suspending and terminating the listing of the companys shares in strict accordance with the law if the listed company constitutes fraudulent issuance, major Information Disclosure Violation or other major illegal acts involving national security, public security, ecological security, production safety, public health and safety, etc Degree requirements.
Second, strengthen the main responsibility of the delisting system of the stock exchange, and make clear that the stock exchange should formulate the implementation rules of suspension and termination of listing of listed companies due to major illegal acts.
From the draft of business rules and gem reform plan, the delisting system is developing in a strict and diversified direction, and the relevant processes are indeed simplified, such as setting up composite financial delisting indicators, canceling the suspension and resumption of listing procedures, etc.
In his speech on May 15, Yi Huiman introduced the construction direction of delisting system as follows: since last year, we have made great efforts to open multiple exit channels such as forced exit, restructuring exit and active exit, and a total of 18 companies have achieved a stable exit, a new record. A capital market with a virtuous circle needs to enter and exit, and survive the fittest. We will further improve the diversified delisting mechanism of marketization and legalization, improve the delisting standards, simplify the delisting process, and resolutely delist those who touch the compulsory delisting standards.
Key point 3: improve the quality of listed companies
For the reform goal of improving the quality of listed companies, the specific measures given by the CSRC include formulating and implementing the action plan to promote the quality of listed companies, effectively controlling the import and export, striving to optimize the increment and adjust the stock.
At the end of 2019, the CSRC issued the action plan for promoting the quality of listed companies, striving to make a great change in the overall appearance of listed companies through 3-5 years of efforts. Prior to that, Yan Qingmin, vice chairman of the CSRC, made a dramatic breakthrough of the plan in a public speech, saying that the action plan has deployed more than 40 specific tasks around the effectiveness of information disclosure, standardization of corporate governance, assistance in transformation and upgrading, resolution of potential risks, improvement of regulatory effectiveness, optimization of development ecology, etc., which will be the main line of work in the next stage.
First, we need to standardize operation, adhere to laws and regulations as the criterion, set an example in compliance with laws and regulations, and governance norms, so as to fundamentally improve the effectiveness of the endogenous constraint mechanism of market subjects.
Second, we should operate steadily, fully understand the market, respect the market, act according to the laws of the capital market, do something or not, and match development with risk control ability.
The system work meeting of China Securities Regulatory Commission in 2020 also stressed that we should promote the survival of the fittest as the goal to promote the quality of listed companies.
Key point 4: strengthen investor protection
China Securities Industry Association, China Securities Investment Fund Industry Association and China Association of listed companies also jointly issued the proposal of implementing the new securities law to strengthen investor protection on May 15, suggesting that listed companies and securities fund industry institutions should be more law-abiding and honest, build a solid foundation for investor protection; be more diligent and responsible, consolidate the main responsibility of investor protection; focus more on the main body Industry, improve the effectiveness of investor protection; more people-oriented, improve the mechanism of investor protection; pay more attention to coordination, give full play to the joint efforts of investor protection.
It is worth mentioning that the current investor protection has more sufficient and effective legal weapons, and the new deal bond law has been officially implemented on March 1. Taking this as an opportunity, it has become an important task for regulators in investor protection to comprehensively strengthen the construction of market rule of law, make full use of relevant laws and regulations, and significantly improve the cost of violations.
Financial fraud, insider trading, market manipulation and other vicious violations occur frequently, which not only damages the market ecology, but also affects investor confidence. In this regard, we must fight hard, use serious laws, resolutely eliminate the black sheep, and effectively protect the legitimate rights and interests of investors. Yi Huiman said so on May 15.
According to him, the revision of the securities law has greatly strengthened the legal responsibility for serious violations such as financial fraud. The CSRC will make full use of the regulatory authority given by the new securities law, increase the punishment and strengthen the supervision and deterrence.
The second is to implement classified policies to reflect scientific supervision. Distinguish substantive violations and formal defects, distinguish affected by epidemic situation and fraud, and distinguish listed companies from controlling shareholders and actual controllers, which not only reflects the seriousness of supervision, but also reflects the accuracy of supervision. The third is to take the case as a reference, further improve the basic system of information disclosure and corporate governance through the small incision of case handling, strengthen the awareness of key minority of controlling shareholders, actual controllers, directors and supervisors who fear listing, and consolidate the responsibility of compliance. We will further improve the relief and compensation mechanism, accelerate the revision of the criminal law, and increase the protection of small and medium-sized investors by means of representative litigation, execution and other means. Give full play to the joint efforts of market supervision, media supervision, investor supervision and other channels, and improve the incentive and restraint mechanism. Fourth, strengthen the supervision of science and technology, make full use of modern information technology means such as big data and artificial intelligence, and continuously improve the efficiency of supervision and law enforcement. Source: surging news editor: Yang Bin Gu nf4368
The second is to implement classified policies to reflect scientific supervision. Distinguish substantive violations and formal defects, distinguish affected by epidemic situation and fraud, and distinguish listed companies from controlling shareholders and actual controllers, which not only reflects the seriousness of supervision, but also reflects the accuracy of supervision.
The third is to take the case as a reference, further improve the basic system of information disclosure and corporate governance through the small incision of case handling, strengthen the awareness of key minority of controlling shareholders, actual controllers, directors and supervisors who fear listing, and consolidate the responsibility of compliance. We will further improve the relief and compensation mechanism, accelerate the revision of the criminal law, and increase the protection of small and medium-sized investors by means of representative litigation, execution and other means. Give full play to the joint efforts of market supervision, media supervision, investor supervision and other channels, and improve the incentive and restraint mechanism.