Nanfang Shares Will Not Be Delisted Temporarily. Investors Say They Are Being Questioned.

It is reported that five consecutive years of financial fraud, so that the market, investors irresponsible.

Is it still ironic to keep listing on A shares?

Nanfang stock made 340 million profits from 2006 to 2010 to preserve its listing qualifications.

The SFC only gave a warning to the company and fined 500 thousand yuan.

Plus the number of tickets received by many executives of the company, a total of only 1 million 530 thousand yuan.

Although the SFC has made a top 500 thousand administrative penalty, a single penalty has aroused widespread public doubt: the cost of violation is too low, and the company should be forced to withdraw.

In response to this, the securities and Futures Commission spokesman Deng Ge responded that at present, Nanfang shares did not have the conditions for delisting. According to the current delisting rules of the Shanghai Stock Exchange, Nanfang shares, despite being traced back for five consecutive years, made false profits, but they continued to make profits in the next two years.

Deng Ge: retrospective loss caused by remolding is usually accidental. Investors holding company stock do not know the risk of company delisting before the company announcements. If the company's stock is temporarily suspended and terminated, it will lack the necessary cushion and preparation for investors, especially small and medium-sized investors.

According to the announcement of Nanfang shares in 2012, after the correction of the previous accounting errors, the company actually lost six consecutive years from 2006 to 2011.

Subsequently, the Shanghai Stock Exchange implemented a delisting risk warning on Nanfang textile company on the basis of the stock listing rules.

Deng Ge said that the securities and Futures Commission has been fully concerned about whether the market should discuss whether the continuous losses should be directly delisted after the retrospective adjustment of Nanfang shares. However, the annual report shows that profits were realized in 2012 and 2013, and there was no case of suspension of listing and termination of stock market under the rules of stock listing.

Nanfang shares will eventually be delisted, and there is no final conclusion.

But at present, the interests of the deceived investors have been damaged.

Song Yixin, senior partner of Shanghai new Wang Da Da law firm, has received legal assistance from more than 20 investors. He believes that Nb shares must be compensated for the injured investors.

Song Yixin: from the perspective of the protection of small and medium-sized investors, I hope Nanfang shares should not be delisted, Nanfang shares should set up a fund to compensate investors for losses caused by fraud.

In addition, some people are not punished because of the retrospective relationship. Such people should leave the senior management of Nanfang stock.

In recent years, A share listed companies have emerged in an endless stream of financial fraud and become a major ailment in China's stock market.

According to the current securities law, the maximum penalty for such securities is 600 thousand yuan.

For example, the first green listed company of A shares was listed at the end of 2007.

It was found that the company increased its assets by about 70000000 yuan in the prospectus, and its business income increased by nearly 300 million yuan from 2004 to 2007.

In 2013, the SFC issued a warning to the green land and imposed a fine of 600 thousand yuan, plus a fine of the responsible person, amounting to only 3 million 700 thousand yuan.

However, the green land was eventually prosecuted by the public security organ for the crime of fraud issuing stocks and illegal disclosure of important information, and the then chairman also went to jail.

Gui Haoming, chief analyst of Shenyang Wanguo Securities Research Institute, said that the direct delisting of illegal companies is really not conducive to protecting the interests of investors. We should step up efforts to punish fraudsters. We must revise the securities law as soon as possible in order to force delisting.

Gui Haoming: first of all, we need to amend the law and not change the law. What kind of compensation mechanism does compulsory delisting have for the deceptive shareholders? For example, mandatory delisting, and all funds to buy shares must be returned. If the company operates for a few years, the money will be gone, and then you will let it withdraw from the market.

Tian Hongtao, lawyer of Beijing Ying Ke law firm, said the existing penalty regulations have lagged behind.

Tian Hongtao: at present, not only in the securities industry, but also in other areas, such as quality supervision, there is such a situation. Some illegal acts have caused losses to investors and consumers. But according to the current laws and regulations, punishment can not play a strong deterrent against offenders, and is not enough to stop it from happening again.

Compared with listed companies, the amount of fines imposed by regulators on sponsors seems to be much larger.

Take Wanfu Sheng Ke (5.650, 0, 0.00%) as an example. In order to be listed, the company increased its operating profit by more than 100 million yuan from 2008 to 2010, fined only 300 thousand yuan, and 20 senior executives were punished. The chairman and others were investigated for criminal responsibility.

In addition to being warned by the SFC, Ping An Securities, as the sponsor of the Wanfu branch, was also confiscated in the business income of the Wanfu branch's listing and listing projects, and it was fined 2 times, totaling 76 million 650 thousand yuan.

This is also the most serious ticket issued by the SFC to sponsor agencies since the sponsor system was introduced in 2004.

Compared to mature markets such as the United States, China's existing securities law is

The punishment for fraud is obviously lighter.

The Symbian act is considered to be a very strict bill for financial and corporate governance of listed companies. What are the key provisions of the 404 clause? If the sibanes act, five years of fraud and six years of losses, how will Nanfang shares be punished?

Zhang Yifei, partner of Securities Department of Beijing de Heng Law Firm: This 404 clause, including the Saipan securities law, is actually a strengthened version based on the US Securities Act and the 1934 Securities Exchange Act of 1933. It can be said that the 2 version is based on the strengthening of administrative responsibility, administrative punishment, criminal liability and civil liability for securities fraudsters.

For example, if it is criminal liability, it will be sentenced to five years according to the law of our country. According to the saipones act, it can be sentenced to 25 years.

With regard to administrative penalties, China's regulations impose a maximum penalty of 1% to 5% of the funds raised. The saipones act clearly stipulates that if an individual is a person, the maximum penalty can be nearly $5 million, and if the company can be $25 million, the punishment will be even more serious.

With regard to civil liability, the provisions of China's Securities Regulatory Commission have mentioned that the controlling shareholders need to repurchase shares of shareholders, but this regulation is recently introduced and there is still doubt about whether it is suitable for Nanfang stock.

Moreover, for civil liability, the SFC stipulates that punishment is the prerequisite while the United States does not have such a restriction.

Therefore, whether from civil, administrative or criminal aspects, the saipones act is very strict for securities fraud.

We saw Enron Corp, and WorldCom, whose CEO and CFO were sentenced to nearly 25 years' imprisonment.

Voice of the economy: the SFC has already given a 500 thousand fine, because the highest is 600 thousand, which is close to the ceiling. But many people feel that the penalty is too light and should be delisted.

The reason given by the SFC is that it does not have the conditions for delisting. However, we feel that the mistake made by Nanfang shares is too much. We hope that it will withdraw from the market.

Retreat or retreat is more in line with the rules, or more conducive to the development of the market?

Observer Zhang Yi: in 2001, there was a clear stipulation that companies that had lost three consecutive years had to force the market to retreat, but Nanfang shares achieved a false profit of six years through financial fraud.

Because the real profits in the past 2 years will not be allowed to withdraw from the market, the SFC spokesman's reason is to take into account the interests of small and medium-sized investors. Since the mandatory delisting system and regulations have been stipulated, we should respect the market rules and not protect the market.

In the name of interest, many explicit provisions are written in a mere scrap of paper. If this goes on for a long time, our capital market will become a bad currency, which drives out bad money, unhealthy, irrational and immature markets.