Investor Education | Speech by Chairman Yi Huiman at the May 15 National Investor Protection Awareness Day
Distinguished guests, Dear Friends,
Good afternoon, everyone! First of all, warm congratulations on the successful holding of the second National Investor Protection Publicity Day! Investors are the foundation of the development of the capital market. Respecting, respecting and protecting investors is the concrete embodiment of the people-centered development of the capital market, and it is also the fundamental regulatory mission of the securities regulatory authorities. Over the past year, we have carried out a lot of effective work and achieved positive results in strengthening the organizational leadership of investor protection, promoting the innovation of litigation rights protection mechanisms, consolidating the legal foundation, and promoting the inclusion of investor education in the national education system. Here, on behalf of the China Securities Regulatory Commission, I would like to express my heartfelt thanks to the legislative and judicial organs, relevant ministries and commissions, market entities, media and investors who have been supporting the reform and development of the capital market and investor protection for a long time. I would like to take this opportunity to exchange views with you on some current hotspot issues.
First, promote the hub function of the capital market to better support epidemic prevention and control and economic and social development
In terms of promoting the smooth operation of the capital market, we adhere to respecting the law, believing in the market, resolutely not making administrative intervention, proactively strengthening communication with the market, strengthening policy coordination in all aspects, and realizing the normal opening and normal operation of the A-share market after the Spring Festival, and the market resilience has been significantly enhanced. Risk prevention and disposal in key areas such as stock pledge, bond default, and private equity funds have achieved obvious results and are generally convergent. In terms of supporting epidemic prevention and control and resumption of work and production, we will implement the policy of "stabilizing expectations, expanding total volume, focusing on categories, renewing periods, and creating tools", and make special policy arrangements in special periods to reflect regulatory flexibility and temperature. It has made a combination of policies to increase financing support for areas and enterprises seriously affected by the epidemic, delay the disclosure of annual reports, and "flexible" processing of stock pledge and margin financing business. In the first four months of this year, IPO, refinancing and exchange bond market financing maintained rapid growth; The value of mergers and acquisitions was 1.2 times that of the same period last year. In terms of maintaining the focus of reform and stimulating the vitality of the market, we steadily promoted the implementation of the key reform measures of the "12 deep reforms". The science and technology innovation Board maintained a good momentum of development, and listed enterprises exceeded 100. The reform of the GEM and the pilot registration system were successfully launched. The reform of the New third Board launched the public offering and listed the selected layer to accept the review. A series of reform and innovation measures have been introduced, such as refinancing policy adjustment, pilot public offering REITs in the infrastructure sector, and optimization of domestic listing arrangements for red-chip enterprises.
At present, the global epidemic continues to spread, the impact on the world economy is still intensifying, international trade and investment are severely hindered, the global industrial chain and supply chain are facing a new round of adjustment, and the deep-seated impact on international relations and global governance is gradually emerging, which is the external challenge that the capital market needs to face in the future. From the perspective of China's situation, in the new stage of normalized epidemic prevention and control, the pressure of preventing import from outside and preventing rebound from inside is still large. The data for the first quarter, including the quarterly reports disclosed by listed companies, show that the epidemic has impacted the real economy, and the next step is to expand domestic demand, improve people's livelihood and expand employment, support the development of small, medium and micro enterprises, and stabilize and optimize the industrial chain and supply chain. For the capital market, on the one hand, we must actively respond to severe and complex internal and external risks and challenges, and strive to achieve steady and healthy development of the market. On the other hand, it is more necessary to take the initiative to implement the requirements of the central government's "six stability" and "six guarantees", strengthen counter-cyclical adjustment, promote the function of the market, and actively contribute to a decisive victory in building a moderately prosperous society in all respects.
First, we continued to step up efforts to support economic recovery. The real economy is the foundation, and this is what we must always bear in mind when doing financial work. As a barometer of the national economy, the capital market should not only be a "thermometer", but also a "booster". It should actively play its important role as a hub of factor resource allocation, policy transmission, risk prevention and mitigation, and expectation guidance, promote the integration of science and technology with capital, and drive a virtuous cycle between the financial and real economies. It will inject new momentum into real enterprises to overcome the impact of the epidemic and achieve improved quality and efficiency. At the same time, we should continue to steadily defuse various risks while supporting epidemic prevention and control and the recovery and development of the real economy, so as to achieve the organic unity of stability and development.
Second, we will continue to strengthen the implementation of the new Securities Law. This amendment to the Securities Law involves the adjustment and improvement of major basic systems such as the full implementation of the securities issuance registration system, significantly increasing the cost of violations, and increasing investor protection, which is a milestone in improving the governance capacity of the capital market and optimizing the development ecology of the capital market. Every participant in the capital market should consciously strive to be the advocate, practitioner and guardian of the new securities law, jointly defend the dignity of the legal system and the authority of the rules, and work together to build a standardized, transparent, open, dynamic and resilient capital market.
Third, we will continue to intensify efforts to comprehensively deepen capital market reform. The more severe and complex the situation, the more we must unswervingly deepen reform, and the direction and determination of the capital market to promote reform and expand opening up will not change because of the epidemic. We will always adhere to the principle of market rule of law, learn from international best practices, adhere to the regulatory concept of "four respects and one synergy", intensify key reforms, properly grasp the pace and timing of reform in light of the epidemic prevention and control situation, and promptly roll out reform measures that will better support epidemic prevention and control and the recovery and development of the real economy. To ensure that the "deep reform of the 12" orderly progress, gradually blossoming.
Fourth, we will continue to intensify efforts to optimize the combination of pipe and pipe and improve services. This is the inherent meaning of market-oriented reform under the rule of law, and it is also a solution to stimulate market vitality and effectively serve the real economy. As long as it is an area where market constraints are more effective, we must resolutely delegate power to the market. We will take the implementation of the new securities Law as an opportunity to comprehensively review and improve supporting rules and regulations and strengthen in-process and post-event oversight. Fully implement the "sunshine examination and approval, transparent examination and approval", and increase all kinds of "pocket policies" and hidden threshold cleaning efforts; Regulation in the service, urgent enterprise urgent, want to investors think, so that the capital market supervision more popular, more warm people.
Second, maintain "zero tolerance" for vicious violations of laws and regulations such as financial fraud, purify the market ecology, and further win trust in the market
At the annual meeting of the Association of Listed Companies in May last year, we issued an initiative and made clear requirements on severely cracking down on financial fraud of listed companies, serious market discipline, and improving the quality of listed companies. Over the past year, through the joint efforts of all parties, positive factors to promote the improvement of the quality of listed companies have been increasing, and a favorable environment is gradually taking shape. With the implementation of the new securities Law, the pressure of strict supervision and inspection of listed companies continues to spread, and the external supervision effect of media and market related parties is increasingly apparent, the concept of "four awe" of controlling shareholders, actual controllers and directors of listed companies has begun to gain popularity, and the overall quality improvement of listed companies has shown some trend for the better. Cash dividends reached a record high of 1.36 trillion yuan. But at the same time, we are also soberly aware that financial fraud, insider trading, market manipulation and other vicious laws and regulations have occurred repeatedly, which not only destroys the market ecology, but more importantly, affects investor confidence. In this regard, we must take strong measures and adopt strong rules, resolutely eliminate the black sheep, and effectively protect the legitimate rights and interests of investors.
We maintain a high-pressure situation of daily supervision and inspection and law enforcement, and concentrate on investigating and handling a number of major financial fraud cases that are highly concerned about the market and have a bad impact, such as Kangdexin and Kangmei Pharmaceutical. These cases have some common characteristics: first, the fraud cycle is long, the amount of money is huge, often lasting several years, and the imaginary profits are billions or even tens of billions of yuan. Second, there is a systematic and large-scale fraud phenomenon, and some companies make up their business and engage in "two books"; Some companies even regularly develop fraud indicators, and cooperate with suppliers and customers to implement the whole process of fraud. Third, fraud is often accompanied by illegal occupation, illegal guarantee, insider trading, stock price manipulation and other illegal and criminal behaviors. We will not let go of such cases until the end. Recently, all the directors and supervisors of a listed company agreed to the disclosure of the annual report while proposing that "the content of the report cannot be guaranteed to be true, accurate and complete", which caused widespread concern and criticism in society. At present, corresponding regulatory measures have been taken. We believe that the preparation, review and disclosure of regular reports is the statutory obligation of the board of directors of listed companies, and the exercise of the right to object to the annual report must abide by the basic principles of honesty and trustfulness, diligence and due diligence, and will never allow loopholes, abuse of power, and escape legal responsibility.
Operation in accordance with law and compliance is the bottom line of behavior that any enterprise must abide by under the market economy. Listed companies, as public companies, should take a good lead and set an example. At present, the epidemic has an impact on the operating performance of some listed companies, for normal performance fluctuations, I believe that the market and investors can understand, but absolutely can not tell lies, make up stories, false accounts, but can not use the name of the epidemic "big bath" or "speculation", which is both the basic constraints of the market, but also the bottom line of regulation. The revision of the Securities Law has greatly strengthened the legal responsibility for serious violations of laws and regulations such as financial fraud, and the CSRC will make full use of the regulatory powers conferred by the new securities Law to increase punishment and strengthen supervision and deterrence.
The first is to highlight the focus of law enforcement, concentrate superior resources to investigate and handle major cases such as financial fraud, promote multiple investigations, strictly deal with relevant listed companies, intermediaries and individuals, and inform the market in a timely manner. The second is to adopt classified policies to reflect scientific supervision. Distinguish between substantive violations and defects in form, distinguish between affected by the epidemic and taking the opportunity to falsify, and distinguish between listed companies and controlling shareholders and actual controllers, which not only reflects the seriousness of supervision, but also reflects the precision of supervision. Third, based on the case as a reference, through the "small incision" of case handling, further improve the basic system of information disclosure and corporate governance, strengthen the awareness of the "key minority" of controlling shareholders, actual controllers and directors and supervisors to Revere "listing", and consolidate the compliance responsibility. Further improve the relief and compensation mechanism, accelerate the revision of the Criminal Law, and increase the protection of small and medium-sized investors through representative litigation, execution and other means. We will give full play to the combined efforts of market supervision, media supervision and investor supervision, and improve incentive and restraint mechanisms. Fourth, strengthen scientific and technological supervision, make full use of modern information technology means such as big data and artificial intelligence, and continuously improve the efficiency of regulatory law enforcement.
It should be emphasized again that the new securities law has been officially implemented on March 1. All parties concerned in the capital market must consciously follow the new securities Law, know the law, abide by it, use it, and enforce it. For cases that are still under investigation and trial before the implementation of the new Securities Law, we will adhere to the law and enforce the law at the time of the violation, but we will implement the spirit of the new securities Law, handle them strictly and seriously, and at the same time accelerate the liquidation of the outstanding cases. Although the illegal acts began before March 1, but still continue to occur and cause serious harm, we will strictly punish in accordance with the provisions of the new securities law. By promoting the construction of self-discipline management, daily supervision, inspection and punishment, criminal liability, class action and civil compensation organic connection, authoritative and efficient capital market law enforcement system, serious market discipline, maintain market order, and the capital market a Haiyan river.
Third, coordinate the key work of capital market reform, development and stability, and unswervingly promote high-quality development of the capital market
We have repeatedly stressed that the capital market is an ecosystem with rich connotation and complex mechanism, and to do a good job in the capital market, we must take into account the dynamic balance between investors and financiers, listing and delisting, refinancing and reducing holdings, new and old shareholders, institutional and individual investors, stock and increment, and seek the greatest common divisor. We will always practice the people's nature of supervision, strengthen the concept of "big insurance", and integrate the protection of investors' rights and interests into the reform, development and stability of the capital market.
(1) Increase investor activity. To enhance market activity, we will not only promote more active trading, but also attract more investors, especially institutional investors, to enter the market, improve the structure of investors, but also establish an open, fair and just market order, and better win trust in the market. We will continue to adhere to the direction of market-oriented rule of law, based on increasing activity, optimizing trading supervision, enhancing the convenience of trading, and significantly improving the transparency of trading supervision. At the same time, we will actively create conditions to smooth the channels for all kinds of funds, especially medium - and long-term funds, to enter the market. First, we will further develop and strengthen the team of public fund managers. Since last year, we have promoted the reform of the public fund access system, which has significantly increased the vitality of the market. In the first four months of this year, the amount of equity public funds raised was 430 billion yuan, 3.8 times that of the same period last year, which played an important role in improving the market structure and stabilizing the market. We will continue to increase policy support and guidance, and continue to encourage commercial banks to initiate the establishment of fund management companies. Support the innovation of equity fund products, further expand fund investment advisory services, and better meet the financial needs of public investors. The second is to continue to increase communication and coordination with relevant parties, promote the relaxation of the proportion and scope of various medium and long-term funds to enter the market, and promote the implementation of the policy of personal pension investment public funds as soon as possible. We will promote more active equity investment in financial products of commercial banks. Third, promote the improvement of institutional investors' tax, performance evaluation, accounting and other supporting policies and arrangements, and strengthen the concept of value investment and long-term investment.
(2) Reform of the registration system. The reform of the registration system is the general outline of this round of capital market reform, and it is a major reform that "affects the whole body". We must adhere to the principle of seeking progress while maintaining stability and implement it step by step, especially the active participation and joint promotion of all parties in the market. We have piloted the incremental registration system reform in the science and technology board, accumulated a certain amount of experience, and are currently piloting the registration system reform in the GEM stock market, the next step will be based on the summary and evaluation, and steadily achieve the registration system reform goal in the whole market in stages.
About the registration system, there are many discussions in various aspects. We believe that three principles must be adhered to together: respecting the basic connotation of the registration system, drawing on international best practices, and reflecting Chinese characteristics and characteristics of the development stage. The registration system must adhere to the information disclosure as the core, so that issuers on the basis of meeting the basic issuance conditions, pay more attention to the needs of investors, true, accurate and complete disclosure of information; Investors make prudent investment decisions based on the information disclosed by issuers and form reasonable prices, so as to more effectively play the decisive role of the market in resource allocation. It is necessary to organically combine learning from international experience and basing on national conditions, fully consider China's market situation, investment and financing balance, investor structure and the legal and honest environment, and scientifically grasp the relationship between issuance quality and registration and audit. It is necessary to adhere to the concept of market-oriented rule of law, establish a set of basic institutional arrangements such as issuance underwriting, trading, continuous supervision, delisting and investor protection, and further strengthen the responsibilities of issuers and intermediaries, and implement stricter in-process and post-event supervision and stricter punishment for violations of laws and regulations.
(C) on refinancing, reduction, delisting and other basic system reform. In terms of refinancing policy, since last year, in response to market concerns and to better meet the financing needs of real enterprises, we have made two optimization adjustments, issued refinancing review standards, streamlined issuance conditions, optimized pricing and lock-up arrangements, and strictly defined strategic investors. The main consideration of doing so is that while meeting the reasonable refinancing needs of listed companies, it can fully safeguard the legitimate rights and interests of small and medium-sized investors. In the next step, we will continue to implement the concept of registration system, focus the refinancing review on key issuance conditions, and timely release refinancing review guidelines to enhance market predictability; Promote the classification review of refinancing, further optimize the process of private placement of high-quality listed companies, and improve efficiency.
In terms of the reduction system, all parties in the market are highly concerned and debated. If the regulation is too loose, it will have an impact on the secondary market and affect the confidence of small and medium-sized investors. If the restriction is too tight, it will reduce market liquidity and affect the entry of funds into the market, especially capital formation. In this regard, we have repeatedly studied and demonstrated, and formed a phased reform plan. Specific considerations are to implement policies in different categories, step by step, and steadily adjust. On the one hand, continue to strictly regulate the controlling shareholders, actual controllers, directors and supervisors to reduce their holdings; On the other hand, for venture capital funds, private enterprise rescue and other appropriate opening, to the policy. The policy that refinancing does not apply to the reduction provisions has been issued, and the policy of optimizing the reverse linkage of venture capital funds and moderately relaxing the transfer of agreements has also been issued. In the future, we will continue to strengthen communication with the market, further evaluate and improve the relevant rules, in order to achieve a relative balance in all aspects.
In terms of the delisting system, since last year, we have focused on unblocking diversified exit channels such as forced withdrawal, restructuring withdrawal, and active withdrawal, and a total of 18 companies have achieved stable exit, hitting a record high. A virtuous cycle of capital markets, there needs to be in and out, survival of the fittest. We will further improve the market-oriented and law-based diversified delisting mechanism, improve the delisting standards, simplify the delisting process, and resolutely delisting those that touch the mandatory delisting standards.
4. Strengthen the responsibility and capacity building of intermediary institutions. As the gatekeeper of the capital market, intermediaries play an important role of professional gatekeeping in the aspects of sponsor quality, accounting audit, compliance audit, credit rating, etc., which is crucial to the integrity construction of the capital market and an important part of investor protection. However, in practice, some intermediaries can't keep up with their own corporate governance and professional ability, can't handle the relationship between business development and brand reputation, and can't fulfill their duties. There are also individual intermediaries who even give up ethics and bottom lines and become "looters" and "accomplices" of fraud. Since June last year, the CSRC has conducted on-site inspections of 86 companies applying for ipos, and the results show that the phenomenon of "reporting with illness" is more serious. This is not only the problem of the enterprise itself, but also reflects the problem of the practice quality of the relevant brokerages, accountants and law firms, some of which are the leading institutions in the industry. We will take action against relevant intermediaries. Here, I would like to stress that the capital market is a market shared by all. Intermediaries of all kinds should uphold the concept of joint construction, joint governance and shared benefits, jointly care for and protect this market, and jointly create a sustainable development ecology. The CSRC will further improve the classified supervision and differentiated development of intermediary institutions, increase policy support for good institutions, and support doing better, stronger and bigger; To the problem institutions and relevant responsible persons, strengthen accountability, improve the blacklist system, and truly reflect the reward and punishment of the bad. To meet the requirements of the reform of the registration system, we, together with relevant ministries and commissions, are formulating regulations on the management of the filing of securities service business by intermediary institutions. While abolishing prior approval, we will give more emphasis to the supervision during and after the event, and promote the healthy development of industry norms. At the same time, we will continue to promote the construction of an industry culture of "compliance, integrity, professionalism and robustness", improve the reputation restraint mechanism, and create a good industry ecology.
5. Continue to open the capital market in both directions. It is the unswerving development direction of the capital market to implement a high level of opening up and promote the optimal allocation of capital elements in domestic and foreign markets and at a higher level. We will continue to promote two-way opening up of the capital market, strive to realize the transformation from the pipeline type and single point of opening up to the institutional and systematic opening up, and use opening up to force reform and promote development. At the same time, we will further strengthen regulatory capacity building under the conditions of openness, strengthen cross-border risk prevention and regulatory cooperation, and earnestly ensure that they are open, clear and well regulated. We reiterate that no matter what form it takes or where it is listed, listed companies should strictly abide by the laws and rules of the relevant market, fulfill their information disclosure obligations truthfully, accurately and completely, and maintain their image and credibility. To improve the quality of information disclosure by listed companies and protect the legitimate rights and interests of investors is the common responsibility of regulators around the world. Deepening cross-border regulatory cooperation and resolutely cracking down on violations of laws and regulations serves the common interests of global investors. We are in close communication with relevant overseas regulators on the recent cases of alleged financial fraud by some overseas listed companies, and will further strengthen cooperation in cross-border securities law enforcement, audit supervision and other areas to jointly improve the international financial governance system.
6. Effectively holding the bottom line of risks. Stability is an important prerequisite for the reform and development of the capital market. In the current situation of increasing external uncertainties and destabilizing factors, we must earnestly strengthen the bottom line thinking, enhance the awareness of potential dangers, focus on the prevention of imported and cross-cutting risks, improve the response plans under various scenarios, and strive to achieve stable and healthy development of the capital market. At the same time, we will continue to prevent and handle risks in key areas. For the risk of stock pledge, strengthen the coordination of supervision, promote the interconnection of information on and off the market, and discuss the prevention and control measures, and strive to improve the overall effect. As for bond default risks, we will improve the market-oriented and law-based mechanism for handling defaults, and take multiple measures to ensure a smooth transition. For private fund risks, accelerate the construction of inter-ministerial linkage and central and local cooperation risk prevention and disposal mechanism, actively explore effective ways to treat both symptoms and root causes, and effectively solve the outstanding problems of "pseudo-private equity", "class private equity" and "disorderly private equity".
Distinguished guests, dear friends, In order to further improve supervision and optimize services, the CSRC system is carrying out thematic activities on style construction of "dare to take responsibility, good supervision, excellent service, strong skills, seek effectiveness, and show image", focusing on solving prominent problems of formalism and bureaucracy, comprehensively reviewing and targeting treatment. Efforts will be made to further enhance the awareness of system service, further improve work efficiency, further strengthen the role of supervision, and further demonstrate the quality and effectiveness of supervision. We welcome your supervision and valuable comments. We believe that this is also an important part of the "big insurance".
Distinguished guests, dear friends, Protecting the legitimate rights and interests of investors is the basic work for the high-quality development of the relational capital market, and it cannot be separated from the extensive participation and strong support of all sectors of society. We will take the initiative to strengthen market communication, humbly learn from investors, and jointly build a mature and rational investment culture and a healthy market ecology.
Thank you all!
This week, the market is mainly volatile, some indexes at the beginning of the week slightly adjusted new lows, and then slowly recovered. It is worth noting that the turnover has declined significantly, indicating that investors' enthusiasm for participation has declined, which is easy to form a narrow volatility trend in the short term. Shanghai Stock Exchange Index (0.13%), Shanghai Stock Exchange 50 (-1.07%), China Stock Exchange 500 (0.13%), chinext Composite Index (0.05%).
The market fell continuously in the week before the holiday, and most indexes basically reversed the recent rebound. Shanghai Stock Exchange Index (-2.3%), Shanghai Stock Exchange 50 (-3.15%), China Stock Exchange 500 (-2.56%), chinext Composite Index (-2.74%). Most of the indices are located below key loci and are also at risk of breaking again. The amount can be even. During the holiday, the overseas situation was more volatile, and overseas markets fell by a large margin, especially the Hong Kong stock market fell sharply, and investors had a more obvious exit sentiment.
This week, the market is mainly shaken, and the style of large and small stocks shows a seesaw effect, but the overall trend in the past two weeks is stronger than expected, the Shanghai Index has not broken, other indexes have not continued to fall after breaking, and the small-cap index has risen to the breaking point. The Kechuang 50 index is still the strongest, not only hitting a new high this year, but also breaking through the stage high point in October last year, and has reached a new six-month high.
The RRR cut at the beginning of this week did not drive the market, but there were still ChatGPT and artificial intelligence events in the middle of the week to stimulate, in the already crowded state of funds, it still further spread to the pan-technology sector, and led the small and medium-sized board index to rise strongly.
This week, the market is slightly divided, the weighted Shanghai index stabilized sideways, the small and medium-sized board index is still falling, which is related to the limited funds on the floor and the transfer to large-market stocks.
This week, the market continued to adjust, in addition to the Shanghai index, most indexes also fell below the previous consolidation range or the downward breakthrough after the moving average bond, the weakness is full.