Yi Huiman, Chairman of the China Securities Regulatory Commission, recently emphasized in the preface to the "Practical Exploration of Investor Protection in China's Capital Market" that it is necessary to strengthen the protection of the legitimate rights and interests of investors and promote the high-quality development of the capital market.

Yi Huiman said that the CSRC will vigorously promote the improvement of the quality of listed companies, adhere to "zero tolerance" to crack down on violations of laws and regulations that infringe on the rights and interests of investors, further unblock the channels for civil remedies and dispute resolution of investors, strengthen the construction of the capital market infrastructure system, strengthen the responsibility of intermediaries, and protect the legitimate rights and interests of investors throughout the whole process and all links of supervision and reform, continue to make efforts, and strive to create a standardized, transparent, open, dynamic and resilient capital market.

"Investors are the foundation of the capital market, and protecting the rights and interests of investors is the fundamental mission of China's capital market supervision." Yi Huiman pointed out that the CPC Central Committee and the State Council attach great importance to the protection of the rights and interests of investors in the capital market. At present, there are more than 1 million individual investors in China, and safeguarding the legitimate rights and interests of investors is related to the vital interests of hundreds of millions of families and hundreds of millions of people, which is a vivid practice of the people's nature of capital market supervision, a proper meaning to give full play to the function of the capital market and enhance global competitiveness, and an inevitable requirement for high-quality development of services.

He introduced that over the past 30 years, the capital market has grown from the early days of the road and pioneered road construction to today's vigorous development and vigorous development, which is inseparable from the strong support of the vast number of investors. For a long time, the CSRC has always taken the protection of the legitimate rights and interests of investors as the starting point and foothold of all regulatory and reform work, adhered to the direction of marketization and rule of law, and with the strong support of all parties, focused on building a general pattern of investor protection of "legal protection, regulatory protection, self-discipline protection, market protection and self-protection", carried out a lot of work in the construction of basic systems, innovation of systems and mechanisms, cultivation of ideas and culture, punishment of violations of laws and regulations, etc., and gradually embarked on a road of investor protection in line with China's national conditions.

First, major breakthroughs have been made in the construction of the rule of law. The new securities law added a special chapter on "investor protection", the amendment to the criminal law (100), the opinions on cracking down on illegal securities activities in accordance with the law, the minutes of the symposium on the trial of bond dispute cases by courts across the country, etc. were promulgated and implemented, the second reading of the draft of the Futures and Derivatives Law was completed, the institutional system such as the suitability management of securities and futures investors was increasingly formed, and multiple rights protection mechanisms such as support litigation, advance compensation, and representative litigation were implemented, and investors were compensated more than <> billion yuan, and administrative penalties, A three-dimensional accountability system for civil recovery and criminal punishment has taken shape.

Second, the specialized and wide-coverage insurance organization system in the field of securities and futures has been 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.

Third, the results of investor education activities have appeared. promoting the integration of investor education into the national education system; Investors' rights to know, participate and benefit are further protected; The concept of respecting investors, respecting investors and protecting investors has become more deeply rooted in the hearts of the people. These investor protection practices with Chinese characteristics have been widely welcomed by the society and have also been positively evaluated and recommended by international organizations. In the "2020 Global Doing Business Report" released by the World Bank, China's "protection of small and medium-sized investors" indicator has improved for two consecutive years, from 119th to 28th.

At the same time, Yi Huiman pointed out that strengthening investor protection still faces a series of new challenges: how to build a modern capital market with Chinese characteristics, accelerate the formation of a more mature and stereotyped capital market basic institutional system, and build a good market ecosystem for investors; How to accelerate the improvement of the legal system environment supporting the bond issuance registration system, further improve the market-oriented legal default disposal mechanism, and effectively protect the legitimate rights and interests of bondholders; How to better adapt to the profound changes in the operation mode and industry ecology brought about by the rapid development of information technology, financial innovation and social platforms to the capital market, and provide investors with a fairer market environment; How to further improve the civil compensation mechanism of the capital market, clarify the legal responsibilities of all parties, and make it more convenient for investors to obtain compensation in accordance with laws and regulations. "All of this requires us to think more systematically and deeply and take more initiative." He pointed out.

Yi Huiman said that there is a long way to go to protect the legitimate rights and interests of investors. The CSRC will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, firmly stand on the people's position of supervision, adhere to the "system building, non-intervention, zero tolerance", adhere to the regulatory concept of respecting the market, the rule of law, professionalism, risk, and forming a strong joint force, protect the legitimate rights and interests of investors throughout the whole process and all links of supervision and reform, continue to make efforts from improving laws and regulations, optimizing market ecology, strengthening concept guidance, etc., and strive to create a standardized, transparent, open, dynamic and Resilient capital markets.

First, vigorously promote the improvement of the quality of listed companies. Improve the institutional arrangements to support listed companies to become better and stronger, further improve corporate governance and internal control mechanisms, encourage listed companies to actively return investors through cash dividends, share repurchases, etc., so that investors can better share the dividends of economic growth.

The second is to adhere to "zero tolerance" to crack down on violations of laws and regulations that infringe on the rights and interests of investors. Highlight key points, strengthen the linkage between administrative law enforcement and criminal justice, strictly and quickly investigate and deal with vicious illegal and criminal activities such as fraudulent issuance, insider trading, and market manipulation, continue to improve the efficiency of audit law enforcement, and strengthen supervision and deterrence.

The third is to further unblock the channels for civil remedies and dispute resolution for investors. Promote the normalization of special representative litigation in securities disputes. Implement the pilot arbitration of the securities and futures industry, and explore more convenient diversified dispute resolution mechanisms. Cooperate with the revision of judicial interpretations such as civil compensation for false statements, promote the revision of the standards for criminal prosecution of securities and futures crime cases, and improve the system for pursuing legal responsibility. Deepen the role of investor service platforms, advocate rational investment, value investment, and long-term investment, and enhance investors' self-protection capabilities.

The fourth is to strengthen the construction of the basic system of the capital market. Steadily advance the reform of the market-wide registration system, continuously improve key systems such as information disclosure, trading, and delisting, and continue to improve the multi-level market system. Strengthen the legal supply of bond and futures markets, optimize the regulatory system of industry institutions, and strive to provide investors with richer and better products and services.

Fifth, strengthen the responsibility of intermediaries. Supervise and urge all kinds of intermediaries to fulfill their responsibilities, and implement basic investor protection duties such as detailed appropriateness management, customer service, and appeal handling. Institutions and practitioners who infringe upon the legitimate rights and interests of investors shall be seriously investigated for responsibility.

"Exploration of the Practice of Investor Protection in China's Capital Market" reviews the development process of investor protection in China's capital market in the process of exploration and grinding, and systematically sorts out the work of insurance philosophy, institutional system, organizational structure, protection pattern, appropriateness management, education services, rights enforcement and protection, infrastructure construction and international exchanges, supplemented by selected typical cases, and comprehensively shows the practical results of investor protection with Chinese characteristics. With this book, I would like to express my sincere respect to the vast number of investors and participants who are committed to investor protection!" Yi Huiman pointed out.

China Securities News/2021/December/12/A14 edition