The Mid Year Meeting Of The Securities Regulatory System Has Arranged Many Measures For The Second Half Of The Year To Implement The "Nine Character Policy"

On July 30, 2020, China Securities Regulatory Commission held a mid year work meeting of the securities regulatory system to summarize the work achievements in the first half of the year and to deploy the key work in the second half of the year.

Since this year, in the face of the sudden outbreak of new crown pneumonia, the capital market has encountered a major test, and from the perspective of re examination, the capital market has withstood the test since 2020, and has further promoted the comprehensive deepening reform of the capital market.

At the mid year working meeting, the CSRC also proposed that since this year, the CSRC has insisted on making special policy arrangements in special periods, strengthening the innovation of financing services and institutional tools, and reflecting scientific supervision and classified supervision. Phased results have been achieved in risk resolution and disposal in key areas. The overall operation of the capital market is stable and the resilience is significantly enhanced.

On the other hand, the comprehensive deepening of capital market reform has been steadily promoted, the innovation of key systems such as refinancing and reducing holdings of the scientific and technological innovation board has been continuously deepened, the preparatory work for the reform of the growth enterprise market and the pilot registration system has been basically completed, and the reform of the new third board has been smoothly implemented. We have implemented the new securities law, investigated and dealt with a number of major and important cases in a strict and serious manner, and continuously improved the legal environment in the market.

Undoubtedly, the smooth operation of the capital market in the first half of the year also laid a good foundation for the implementation of the key work to be carried out by the CSRC. The reporter learned that at the meeting, the CSRC disclosed that it would carry out its work in nine aspects in the second half of the year. The core line of this work is to adhere to the principle of deepening the structural reform of the financial supply side and implementing the policy of "system building, non intervention and zero tolerance".

Implementation of the nine character policy

Liu Jiazui, vice premier of the CPC Central Committee, put forward the policy of "deepening the reform of the capital market" for the first time. The core of the work arrangement of the mid year work meeting of the CSRC is to implement the "nine character policy".

At the mid year working meeting of the CSRC, it was proposed to focus on the main line of "system building" and accelerate the maturity and finalization of the basic system of the capital market.

From the point of view of the overall system, we should accelerate the design and focus on the key problems. We should improve the rules of registration system, enhance the pertinence and effectiveness of information disclosure, and improve the quality, efficiency and transparency of audit and registration. We will improve the market-oriented and legalized delisting mechanism, and smooth diversified channels for delisting. We will steadily promote the reform of the transaction settlement system with a more market-oriented and convenient orientation.

"To sum up, there are three major aspects to establish the system at present. One is to further implement the system related to the registration system reform, the other is the delisting system that the market has been expecting for a long time, and finally the trading system. Each system construction has a great impact on the market. According to the current regulatory statements, in the next six months to a year, some basic system improvements may be implemented. " Beijing area a medium-sized securities firm investment bank business line head told reporters.

In addition to "building a system", practicing the concept of "non intervention" is also an important part of implementing the "nine character policy". The Securities Regulatory Commission said it was necessary to build a good predictable mechanism for the capital market. So how to build good expectations? At the meeting, it was proposed that we should reduce regulation, vigorously promote the reform of "release, control and service"; adhere to the rules and regulations to maintain the normal functioning of the market; improve the expectation management mechanism, strengthen macro research and judgment, and stabilize market expectations. With the establishment of the list of rights and responsibilities as the starting point, we will comprehensively clean up the "pocket policy" and "invisible threshold", and further integrate and standardize the reporting items. We should improve the investment institutions and improve the quality management mechanism of the industry.

"In the past year or two, the market has been able to clearly feel that the CSRC has reduced administrative intervention. This time, a lot of new shares broke out in the selected layer of the new third board, which is the most symbolic representative. However, the breaking out of these new shares did not break down the selective layer market. With the self balance of market power, the market of selective layer has made a good market in the following trading days." Open source securities small and medium-sized enterprise service department head Peng Hai thinks.

Around the above two main lines of reform, the CSRC will implement many specific measures in the second half of the year. The reporter learned that the CSRC then proposed to maintain the normalization of IPO and promote the classified review of refinancing; accelerate the implementation of public offering REITs in infrastructure field to form the demonstration effect as soon as possible; promote the innovation of futures option products; promote the reform of gem and the stable implementation and stable operation of the pilot registration system; continue to deepen the reform of the new third board to enhance the market attraction, radiation and competitiveness To speed up the implementation of the policy of public fund investment and promote the coverage of individual funds.

"Zero tolerance" in full bloom

Compared with the "system building" and "non intervention", since this year, the financial commission and the Securities Regulatory Commission have paid more attention to or need to respond to the market with "zero tolerance" and "zero tolerance" for crimes committed in the capital market.

At the meeting, the CSRC also said that it would implement the "zero tolerance" requirement and crack down on illegal and criminal activities in the capital market. Specifically, it is necessary to continue to strengthen the crackdown on such vicious crimes as fraudulent issuance, financial fraud, insider trading, market manipulation, etc., promote the establishment of a coordination mechanism for cracking down on illegal activities in the capital market, and promote the construction of a three-dimensional and organic system in which administrative law enforcement, civil recovery and criminal punishment are interconnected and mutually supported. We should pay attention to the implementation of the securities class action system. We should strengthen law enforcement publicity through multiple channels and platforms to convey a clear signal of "zero tolerance".

As of July 31, several incidents related to "zero tolerance" came to the ground. From July 31, 2020, the Supreme People's Court promulgated and implemented the provisions on several issues of representative litigation in securities disputes, marking the real implementation of the securities class action system in China.

In the afternoon of the same day, at a press conference jointly held by the Supreme People's court and the China Securities Regulatory Commission, Jiao Jinhong, the chief lawyer of the CSRC, said in response to a reporter's question from the 21st century economic report: "we should increase the investigation of civil liability. For those who seriously damage the rights and interests of investors, those who are black sheep, we should not only let them be punished and ruined, but also make them lose their wealth. The securities class action system will greatly increase the cost of illegal activities, so that those who break the law will not dare to violate it, so as to effectively curb and reduce the occurrence of illegal and criminal acts in the capital market. "

On the same day, the CSRC also said that it would transfer 10 suspected securities crimes such as financial fraud of listed companies to public security organs according to law. In these cases, first, financial fraud seriously damaged the integrity of the market. Second, a variety of illegal information disclosure acts interweave, seriously undermining the seriousness of the information disclosure system. Some companies fail to disclose related party transactions and major lawsuits as required, while others provide external guarantee in violation of regulations. Third, the major shareholders, actual controllers and senior executives embezzle and occupy the company's funds while organizing and planning financial fraud, thus damaging the interests of listed companies by breaking faith.

A spokesman for the CSRC told the reporter that this is an important measure for the regulatory authorities to fully implement the "zero tolerance" work requirements for illegal and criminal acts in the capital market, focus on building a three-dimensional accountability system that organically connects administrative punishment with criminal punishment, and severely crack down on such vicious illegal behaviors as fraud and fraud in the capital market.

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