Further Discussion On The Responsibility Of Intermediary Agencies: Let The Gatekeeper Be Reduced To "Letting The Wind".

From Xintai electric delisting, two Kang "thunder explosion" to Rui Xing fraud, the listed company's financial fraud has caused the market to ponder at the same time, it also pointed to a commonplace topic -- intermediary agencies performing responsibilities. As the "gatekeeper" of the capital market, intermediary organizations can neither be "nominal" nor "loose". Especially when the registration system of gem is coming to an end, it is more and more important and urgent to urge the agencies to perform their duties and compacted intermediary responsibilities.

Recently, the finance committee made three heavy calls, demanding resolutely crack down on the counterfeiting of capital markets. At the same time, it emphasizes the responsibility of compaction intermediaries, and resolutely investigates and seriously deals with fraudulent listed companies, intermediaries and individuals.

Intermediaries strictly perform verification and verification and other important duties, which is very important to supervise and standardize the operation and disclosure of listed companies. In the context of continuous regulation and further optimization of capital market ecology, it is a matter of considerable interest for the intermediary to decide whether to perform its duties and fulfill its responsibilities and how to constrain the intermediaries to "go beyond the thunder market". In twenty-first Century, the economic report reporter intends to answer this question through the supervision logic of duplicate market.

In the face of dubious matters, is the intermediary responsible?

Usually, for the important or suspicious matters that happen to the company, the regulatory body will send a letter to inquire, and ask the intermediary to verify the opinions, so as to urge the intermediary to perform their duties prudently and strictly. These suspicious items and verification results are undoubtedly key messages for investors to make decisions.

Such as Tianguang Zhong Mao, in May 5th, disclosed the information on the right to vote and the signing of strategic cooperation agreement with the trustee. At that time, the company's share price had been below the face value for 16 consecutive trading days, and the company faced a situation of extreme liquidity shortage and large losses in 2019. Does the trustee have the strength to help the company fill the hole to solve the debt dilemma? Are these planning matters reliable?

In response to these questions, the Shenzhen stock exchange sent a letter to the company, financial advisors and lawyers in May 5th to give full instructions before May 8th. But until now, financial advisers and lawyers have not yet replied to the correspondence. If not, the company's self rescue plan will not win market trust. In May 11th, the company triggered 20 consecutive trading days below the face value of the delisting standard, and the company's stock was terminated.

*ST Dehao's 2018 financial report was issued by Li Xin, including matters relating to asset impairment preparation and the accuracy of estimated liabilities. In August 2019 and November, the company made two corrections for accounting errors, totaling 3 billion 386 million yuan in 2018 for the provision of Impairment Assets and estimated liabilities. After a series of dazzling accounting practices, the company disclosed a profit of 264 million yuan in 2019, and finally realized its guarantee.

Correcting the 2018 financial report and avoiding accounting for the large losses in 2019 seems not very logical. The Shenzhen stock exchange sent letters to the companies and accountants to explain. Although the companies and accountants replied to "explain doubts", they obviously did not satisfy the exchange. In May 24th, the Shenzhen Stock Exchange issued an annual inquiry letter, which further asked the accountants to verify whether the above items were identified as the basis for accounting errors in 2018. Whether there was a misstatement of the financial statements in the course of the 2018 annual audit, restricted by the scope of audit.

Besides providing professional professional quality, intermediary service personnel should follow the fair and objective professional methods, possess strict and responsible competence and proper professional prudence. Reporters noted that in recent regulatory inquiries, there has been a new "action". In recent years, *ST, *ST, Busen, FENDA and FENDA and other companies have received the annual report enquiry letter. For individual important accounting matters, besides the intermediaries being asked to check and express their opinions, the certified public accountants are also asked to give their opinions, and the responsibility of intermediaries verification extends from single to personal.

For example, when *ST disclosed the annual report in 2019, it corrected the accounting errors of the Jiangnan group in 2018, including the confirmation of the cost, the receipt of inventory, and the advance payment account. The company's 2018 financial report was issued by the former audit institution with a standard unqualified audit opinion.

Therefore, the Shenzhen Stock Exchange asked the former audit institutions and the certified accountants to explain whether the audit procedures in the pre audit work were in place, and whether sufficient and appropriate audit evidence was obtained when the audit opinions were issued.

Similarly, *ST Busen's certified public accountants are required to express their views in the name of individuals because of their annual liabilities of the listed companies before and after the estimated liabilities.

In the view of the industry, it is more important to implement the responsibility of verification to individuals and to perform duties in the intermediary, and the problem of being accountable for the failure to perform duties is to let the intermediary tighten the string of careful performance.

After the big event, the responsibility of the intermediary is forced.

Intermediaries are entrusted by the listed companies to engage in related businesses. In the process of performing their duties, the intermediaries, as the de facto "Party B", are unable to guarantee that their opinions are biased, or even become "accomplices" of listed companies. It is obviously not "self-conscious" to put an end to such behavior that disrupts capital market ecology.

In recent years, regulators have increased their responsibilities after major events, forcing the agencies to work diligently and responsibly. Reporters in combing the Shenzhen Stock Exchange to the intermediary punishment situation, found that at present, there are more than 10 financial fraud company intermediary personnel were punished by the Shenzhen Stock Exchange. In addition to being severely punished for financial fraud, the assessment is not prudent, no associated transactions, capital occupation, illegal use of fund-raising funds and other intermediary dereliction of duty may be seriously accountable. For example, in 2019, the certified public accountants of Dahua accounting firm were given a false account of the audit report due to their diligence and responsibility in the annual trial business of the company. For example, the two signing lawyers of the Rong Yu Group recently criticized the Shenzhen stock exchange for their failure to perform their verification duties.

In recent days, there are financial disclosure disputes involving financial loan contract disputes. The Shenzhen stock exchange sent letters to urge companies and lawyers to conduct verification. The two lawyers employed by the company ignored the public information of the civil judgment issued by the Chinese judgment document network, which was published in the company's financial loan contract disputes. "In the legal opinion issued," the company does not exist as of the date of issuance of this legal opinion. Information that should be disclosed but not disclosed in time. " The Shenzhen Stock Exchange once again sent 2 letters to continue questioning, the company finally "changed" and disclosed the litigation matters, while the two lawyers were not prudent in their practice, and the behavior of issuing improper opinions eventually led to the notification and criticism of the exchange.

Sticking to the principle, we can go far and steady.

Apart from regulatory constraints, the brand trust crisis brought about by the market public opinion environment is also playing an increasingly important role in the performance of intermediary agencies.

Previously, some of the intermediaries were subject to administrative penalties, not only for a limited period of time, but also restricted the business undertaking.

In the short term, whether intermediaries fulfill the duty of "gatekeeper" and whether they comply with the principle of honesty and trustworthiness will have an impact on whether they are subject to regulatory accountability. In the long run, it also determines their reputation and value in the capital market. In exchange for "short-term interests" at the expense of reputation, the "gatekeeper" is not worth the candle.

"Do not take intelligence as the first thing, but do it with your heart".

Market participants believe that intermediaries should abandon fluke psychology, do their jobs on a down-to-earth basis and work together with other market players to create a healthy ecosystem of capital markets that are honest, trustworthy and sustainable. With the continuous advance of the reform of the capital market, the cost of breaking the law and other illegal products will be greatly improved, and the relevant responsible units and personnel will also pay a higher price. In this era, people who speak principles will always be seen, but those who do not speak principles will eventually lose their foothold. (Editor: Wu Yan Ling)

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