To purify the capital market is a long-term war. We must strengthen the supervision of listed companies financial fraud and other illegal behaviors. Pan Helin, executive director of the Digital Economy Research Institute of Zhongnan University of Finance and law, told the Securities Daily. At the same time, he believed that this also showed that it was the general trend for the regulatory authorities to strengthen law enforcement and investigate the illegal responsibilities of relevant subjects from a strict, heavy and fast manner.
According to relevant data released by the CSRC, since 2019, based on the overall objective of improving the quality of listed companies and the work requirements of serving the real economy, the CSRC has strengthened coordination, strict standards, optimized mechanisms, and severely cracked down on financial fraud of listed companies. It has filed investigations on financial fraud of 22 listed companies, imposed administrative penalties on 18 typical cases, and submitted them to the Public Security Bureau Six cases of financial fraud were transferred by the authorities.
The new securities law, which came into effect on March 1 this year, has greatly increased the penalties for securities violations, especially for financial fraud.
Guo Yiming, director of investment advisory of Jufeng investment consulting, told the Securities Daily that the new securities law increases the punishment for illegal acts and has a strong warning effect, which is conducive to clearing the market environment, improving the quality of listed companies, promoting the healthy development of the securities market and protecting the legitimate rights and interests of investors.
Panhelin said that to purify the market environment, on the one hand, we should continue to improve the legal basis for accountability in the capital market, improve the systems standardization and delicacy, implement legislation and strictly enforce the law, so that the law can be relied on. On the other hand, we will continue to intensify the crackdown on violations of laws and regulations, improve the punishment, and strengthen the investigation of responsible personnel at all levels, including controlling shareholders, actual controllers, as well as intermediary agencies such as securities service agencies, financial reporting and auditing agencies of companies, to strengthen and adjust their responsibilities and promote their due diligence.
Chinas new securities law also defines the bonus reporting system. For example, it is stipulated that any unit or individual shall have the right to report to the securities regulatory authority under the State Council any suspected illegal or illegal act of securities; if the real name reporting clue of suspected major illegal or illegal act is verified to be true, the securities regulatory authority under the State Council shall reward the informer according to the provisions.
Yan Qingmin, vice chairman of China Securities Regulatory Commission, said at the 2020 annual meeting of China Association of listed companies recently that he would continue to explore and improve the system of reporting with awards and take it as an important way to purify the capital market, so that more market participants can participate in the ecological purification process of the capital market and actively play a role of social supervision.
Pan Helin said that reporting with prizes is a powerful measure to crack down on financial fraud in the international capital market. At present, Chinas efforts to rectify the chaos in the capital market are increasing, reporting with awards is an effective way to play the role of social supervision. By making full use of internal insiders resources, we can promote regulatory transformation, transform internal conspirators into supervisors, improve the detection ability and regulatory efficiency of financial fraud and other illegal behaviors, and better protect the rights and interests of investors.
Source: Yang Qian, editor in charge of Securities Daily_ NF4425