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Improve the investor protection system and build the foundation of the registration system reform

Improve the investor protection system and build the foundation of the registration system reform

(Summary description)The work report of the Supreme People's Procuratorate submitted for consideration on the 8th pointed out in reviewing the work in 2021 that it actively participated in the prevention and resolution of financial risks. The establishment of the Procuratorate Office at the China Securities Regulatory Commission, the joint Ministry of Public Security and the China Securities Regulatory Commission to specifically punish securities crimes, focusing on 19 major cases, and guiding the prosecution of the Kangde Xin case and the Kangmei Pharmaceutical case, helping to regulate the capital market in accordance with the law and safeguard the legitimate rights and interests of investors.

Improve the investor protection system and build the foundation of the registration system reform

(Summary description)The work report of the Supreme People's Procuratorate submitted for consideration on the 8th pointed out in reviewing the work in 2021 that it actively participated in the prevention and resolution of financial risks. The establishment of the Procuratorate Office at the China Securities Regulatory Commission, the joint Ministry of Public Security and the China Securities Regulatory Commission to specifically punish securities crimes, focusing on 19 major cases, and guiding the prosecution of the Kangde Xin case and the Kangmei Pharmaceutical case, helping to regulate the capital market in accordance with the law and safeguard the legitimate rights and interests of investors.

Information

The work report of the Supreme People's Procuratorate, submitted for deliberation on the 8th, pointed out when reviewing its work in 2021 that it actively participated in the prevention and resolution of financial risks. Set up a procuratorial office in the China Securities Regulatory Commission, cooperate with the Ministry of Public Security and the China Securities Regulatory Commission to specifically punish securities violations and crimes, handle 19 major cases in a centralized manner, guide the prosecution of Kangde Xin and Kangmei Pharmaceutical, help supervise the capital market in accordance with the law, and safeguard the legitimate rights and interests of investors.

At present, the number of investors in the A-share market has exceeded 2 million. In the context of the gradual approach of the market-wide registration system, it is of great significance to strengthen investor protection. The deputies and members interviewed by the reporter of China Securities News believe that investor protection is the cornerstone of the reform of the registration system. All parties in the market need to work together and take multiple measures to strengthen the protection of investors' legitimate rights and interests, continuously improve the investor protection system, and promote the reform of the registration system in a stable and far-reaching manner.

Build a solid foundation and strengthen investor protection

According to China Clearing data, since it exceeded 2019 million in March 3, the number of investors in the A-share market has continued to grow, reaching 1,5,2022 as of February 2, 25.

Investors are the foundation of capital market development. Jia Wenqin, deputy to the National People's Congress and director of the Beijing Securities Regulatory Bureau, said that improving the investor protection system and increasing the intensity of investor protection is to stand firm on the people's position in the capital market and practice the due meaning of "people-centered" in supervision.

In the context of the comprehensive implementation of the registration system reform, the importance of strengthening investor protection is prominent. As Wang Jianjun, vice chairman of the China Securities Regulatory Commission, said, whether the legitimate rights and interests of small and medium-sized investors can be properly protected is a key criterion for measuring the success of the registration system reform.

Zhu Jiandi, deputy to the National People's Congress and chairman of Lixin Accounting Firm, said that the registration system is a major reform that affects the whole body, and safeguarding the interests of investors is a key part of ensuring the healthy and stable development of China's securities market and fully playing the financing function of the capital market. The impact of the registration system reform on investors is a combination of challenges and opportunities. On the one hand, the reform of the registration system will make investors face diversified investment problems; On the other hand, it is conducive to the optimization of investor structure and deepens investors' in-depth understanding of value investment concepts.

Strengthening investor protection and safeguarding the legitimate rights and interests of investors requires the joint efforts of all parties in the capital market. Zhu Jiandi said that investor protection is a systematic project, which requires the concerted efforts of all parties, but also requires supporting systems, effective supervision, severe penalties, precise policies for different risk matters, effectively enhancing investors' sense of gain and security, and striving to build a standardized, transparent, open, dynamic and resilient capital market.

Remarkable results have been achieved The three-dimensional accountability system has initially taken shape

With the continuous growth of the number of investors, the regulatory authorities have carried out a lot of work on the construction of the basic investor protection system, the innovation of institutional mechanisms, the cultivation of ideas and culture, and the relief of rights protection according to law, forming an effective joint force, and a three-dimensional accountability system of administrative punishment, civil recovery and criminal punishment has initially taken shape, and obvious results have been achieved in protecting the legitimate rights and interests of investors.

Feng Yidong, a member of the National Committee of the Chinese People's Political Consultative Conference and chairman of Zhongtai Financial International Co., Ltd., said that in recent years, the CSRC has continued its "zero tolerance" attitude towards illegal acts in the capital market, severely cracked down on securities fraud such as financial fraud and illegal information disclosure of listed companies, improved the capital market ecology, and significantly improved the protection of investors' rights and interests.

From the perspective of the construction of the rule of law, a special chapter on "investor protection" has been added to the new securities law, and the Criminal Law Amendment (2020) and the "Opinions on Cracking Down on Illegal Securities Activities in accordance with the Law" have been promulgated one after another. Liu Lei, deputy to the National People's Congress, secretary of the party committee and executive vice president of the China Association of Listed Companies, said that since the implementation of the new securities law on March 3, 1, the regulatory authorities have made full use of the regulatory powers granted by the new securities law, resolutely implemented the "Opinions on Cracking Down on Illegal Securities Activities in accordance with the Law" and the "zero tolerance" work policy of the two offices, and continuously increased the crackdown on illegal cases in the capital market. At the same time, the efficiency of law enforcement has been steadily improved, and the focus of law enforcement has been more focused on major cases of financial fraud, illegal information disclosure and high social concern of listed companies, timely responding to market concerns, effectively maintaining market order, and protecting the legitimate rights and interests of investors.

In November 2021, the Guangzhou Intermediate People's Court ruled in the first instance that Kangmei Pharmaceutical and related responsible persons compensated investors with 11.24 billion yuan, marking the successful implementation of the special representative litigation system in China's capital market.

In addition, the insurance organization system in the field of securities and futures has gradually improved. With the joint participation of regulatory departments, insurance institutions, trading venues, industry associations, etc., the insurance application work mechanism for market entities to effectively perform their responsibilities has basically taken shape, and high-standard investor service platforms such as the "12386" hotline and China Investor Network have been completed and operated.

Improve the system and promote the steady and long-term implementation of the registration system

Investor protection is the cornerstone of the registration system reform. Without perfect investor protection, there will be no stable and far-reaching reform of the registration system.

Lu Qingguo, a deputy to the National People's Congress and chairman of Chenguang Biotechnology, said that regulators should increase the punishment of securities violations such as fraudulent issuance, performance fraud, and market manipulation, effectively protect the interests of investors, maintain the good order of the capital market, and enhance investors' confidence in the capital market.

Some experts also suggested that the experience of the first case should be comprehensively summarized as soon as possible, continue to promote the improvement of the special representative litigation system and mechanism, support investor protection institutions to further optimize the case assessment, decision-making and implementation processes, and promote the normalization of special representative litigation.

The 2022 Investor Protection Work Conference held by the China Securities Regulatory Commission recently required that the insurance application work in 2022 should focus on the goal of "stable growth, risk prevention and reform", further improve the institutional mechanism and regulatory system of investor protection, and continuously improve the effectiveness of investor rights protection with more precise and pragmatic measures, and better serve the high-quality development of the capital market; Further unblock channels for investors to protect their rights and recover compensation in accordance with the law, improve the basic system for investor protection, guide and urge market operators to take the initiative to do a good job in insurance work, cultivate a team of rational investors, and consolidate the basic guarantee for insurance work.

China Securities News/2022/March/3/A10 edition

Special report of the 2022 Two Sessions

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