Regulatory Authorities Strictly Investigate IPO Patent Fraud, And China'S Stock Market Accelerates "Detoxification".

A few days ago, the securities and Futures Commission sent an urgent letter to "the comprehensive verification of the IPO project reported before May 1st"; in May 18th, the Supreme People's Procuratorate and the Ministry of public security clearly defined the filing and prosecution standards for the securities market and insider trading; in May 19th, May 21st, May 25th and May 26th, the people's Daily published five articles in a week, pointing to insider trading in the securities market.

The successive issuance of laws and regulations, strict verification by the regulatory authorities and continuous questioning by the central level media indicate that management is accelerating the elimination of "cancer" in the securities market.

Central media focuses on insider trading

Insider trading has seriously undermined the fairness of market pactions, which many small and medium-sized investors hate.

From the hang Xiao steel structural orders to Yanbian road backdoor, the insider trading case on the A share market is fresh.

In May 18th, the Supreme People's Procuratorate and the Ministry of public security clearly defined the standards of filing and prosecuting the securities market and insider trading, and prosecuted the cases where pactions involving undisclosed information were carried out and the turnover of securities pactions totaled more than 500 thousand yuan.

Subsequently, the people's Daily published five consecutive articles, pointing directly at the stock market insider trading.

Following the Xinhua News Agency's real estate market "six Lian commentary" is the storm of the real estate industry, does the intensive dispatch of the people's daily also mean the arrival of the era of insider trading crackdown? Yan Yiming, a well-known securities lawyer, believes that from the recent reports of the central level media and a series of statutes issued by the state, the relevant departments of the state are determined to focus on insider trading.

However, in such a pressure of public opinion, there is still a crime committed by enterprises against the wind.

In May 19th, Hongda shares changed. The volume of pactions was 670 million yuan, which was nearly 3 times the average daily turnover of more than 200 million in the previous month. On the evening of that day, the company issued a notice of suspension of major asset reorganization, saying that major shareholders were brewing a major asset restructuring of the company, and the suspension would be suspended for up to one month.

In this regard, the people's daily in 21 days in a text, "capital foresight" repeatedly occurred coincidences or insider information leakage, "pointed out that the 19 day, a large number of funds to buy HTC shares that day may be suspected of using insider information to engage in securities pactions.

Then, in May 25th, Tonghua Jinma ended up on the blackboard.

From the closing of the Shenzhen Stock Exchange after the closing day, Tonghua has been heavily involved in Tonghua's golden horse.

That night, the company announced that it had received the notice from the first largest shareholder of Tonghua Yongxin investment limited liability company. The government of Tonghua Er Jiang District will discuss matters related to the company's major issues in the near future.

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[comment] increase penalties to reward whistleblowers

As for insider trading, the famous financial critic Ye Tan analyzed yesterday, "in fact, China's legal provisions are relatively complete for illegal activities in the securities market.

However, there are many problems at the executive level.

For example, if the interests of investors are damaged, they want to find relevant responsible persons to safeguard their interests, but they can not appeal directly. They should first obtain the administrative penalty documents of the regulatory authorities.

From this perspective, it is not difficult to understand the laws and regulations of the capital market which are not independent and difficult to enforce.

In order to put an end to the irregularities in the securities market, we must improve our institutions, simplify procedures, increase penalties and raise compensation.

Song Yixin, a lawyer for securities rights protection, told our reporter that the "reward system for reporting" should be implemented to combat insider trading.

In such cases, it is difficult to collect evidence for inspection, supervision, punishment and sanctions.

Therefore, the regulatory authorities and the judiciary should encourage reporting and implement the reward system for reporting.

Supervision departments strictly investigate IPO patent fraud

Yesterday, the Internet star Ruijie again issued a trial meeting and released.

The company approved the issuance examination committee in June 27, 2008, and was approved by the SFC in April 2nd this year. However, it was postponed until it was confirmed that the company's patent had been terminated before it was officially issued in April 19th.

In March 18th, Suzhou, which had raised 416 million yuan, was exposed to the media for a long time. 5 patent technologies were declared terminated by the State Intellectual Property Office, which led to the stranding of the growth enterprise market.

In April 20th, the SFC issued a regulatory letter to the sponsoring agency, which required the Department of supervision to verify all the items reported before May 1st.

The verification includes other important matters, such as patent, trademark, litigation and arbitration, related parties and prospectus.

But can such self-examination solve the problem?

In fact, patent fraud is just the tip of the iceberg of IPO chaos.

There has been no interruption in the news about IPO fraud of Listed Companies in the market.

Jiangsu three friends concealed the actual controller changes for five years before being discovered. After that, Suzhou has been exposed to the core patent fraud in the prospectus. Far from the big state-owned enterprise, Sichuan Changhong has been arrested for financial fraud for more than 10 years. The Hong Kong stock Hongliang international has been accused of packaging and listing, so that its auditor has been prosecuted by the ICAC.

Driven by huge interests, the listed companies, sponsor dealers, legal advisers and so on are willing to take risks, laying the foundation for the company to bring high technology aura, and lay a foundation for the meeting and the high price earnings ratio issue.

A sponsor who has been engaged in investment banking for a long time tells this reporter that in order to sponsor a successful sponsor, the sponsor often turns a blind eye to the problem, and then calculates the problem. It is only a suspension of sponsorship qualification for a period of time. Once the sponsor is successful, millions of signing fees and other benefits will come.

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[comment] enterprise IPO patent fraud must be delisted.

China Times editor in chief Shui Po also pointed out to our reporter that "the problem of IPO performance packaging is actually a matter of mechanism, that is, responsibility fails, and no one is fully responsible for the problem. There is no issue of the trial committee outside the country, and sponsors, law firms and accounting firms perform their duties, who will be able to find out who has problems.

Another is that the illegal cost of China's capital market legal system is low, and the intensity of investigation is not enough.

Song Yixin, a well-known securities lawyer, said in an interview with our reporter, "according to the judicial interpretation of the existing laws and regulations, the scope of the false statement mainly refers to the fraud on the financial data, whereas for the gem enterprises, false statements only mean that financial fraud is obviously not enough, and it should also include the fraud of intellectual property rights related to the core technology of the enterprise."

Prior to the Hongkong stock market, there was a mandatory delisting of enterprises in the IPO process.

In this regard, Song Yixin also suggested that for the GEM listed companies to make false statements, they should immediately enter the "quasi delisting" state according to law, once the final responsibility is identified, that is, to enter the "delisting" state.