Xinhua News Agency, Beijing, July 13 Question: "Zero tolerance" for chaos! Finance Committee meeting releases a clear signal to promote the healthy development of the capital market

  Xinhua News Agency reporter Liu Hui

  Recently, the Financial Stability Development Committee of the State Council convened the 36th meeting to study and fully implement the "zero tolerance" work requirements for illegal and criminal acts in the capital market.

  This is a clear signal that after the Finance Committee meeting paid close attention to the issue of counterfeiting in the capital market in April and May this year, it once again focused on the governance of chaos in the capital market, releasing a clear signal of maintaining the health and stability of the capital market and a good ecology.

  In recent years, the pace of China's economic transformation and upgrading has been accelerating. This process requires the Chinese capital market to play a more important role. At the same time, the demand for Chinese households to allocate financial assets is rapidly increasing. More and more investors are paying attention to investment opportunities in the capital market. This also requires a market with a sound system and strong protection for investors’ legitimate rights and interests.

  In this context, only a "zero tolerance" of market chaos such as fraudulent issuance and financial fraud can truly form a healthy and benign market ecology.

  This meeting believes that the integrity of market entities is related to the long-term healthy development of the capital market. Fraudulent issuance, financial fraud and other illegal and criminal acts are the "cancers" of the capital market, damage the legitimate rights and interests of investors, endanger the market order, restrict the effective functioning of the capital market, and must be resolutely, decisively and promptly corrected.

  It should be noted that, for some time, due to the shortcomings of the system construction, the cost of illicit crimes in the capital market has been low, and many cases of vicious financial fraud have occurred. Among them, there is no lack of fraud in the old "star enterprises", causing extremely bad market impact.

  With the implementation of the new securities law, positive changes are taking place. The meeting pointed out that the newly revised securities law has greatly increased the cost of illegal capital crimes in the capital market, the regulatory rules and regulations are constantly being improved, and a strong framework for three-dimensional punishment has been established. The CSRC and relevant departments should further strengthen securities law enforcement and judicial work, and firmly combat and contain The illegal and criminal activities of the capital market protect the rights and interests of investors, especially small and medium investors, and respond to the expectations of all sectors of society.

  It is worth noting that the meeting proposed to fully implement the "zero tolerance" requirements for illegal and criminal acts in the capital market, and take multiple measures to strengthen and improve securities law enforcement. A set of "combination punches" to control chaos and promote the stable and healthy development of the market was deployed from seven aspects.

  People in the industry believe that whether it is a serious punishment for serious crimes in accordance with the law, or a severe case with severe social impact, a “class action” should be initiated in time according to law; or a deeper reform of the delisting system to further improve securities crimes Penalty intensity, etc. are timely feedback and responses to recent market concerns.

  Pang Ming, chief economist of Huaxing Securities, said that the financial supervision department is gradually realizing the unification of main body supervision and functional supervision, establishing, building, and improving cross-department coordination work systems, cross-border supervision cooperation systems, and exploring flexible supervision models. "This will effectively make up for the shortcomings of supervision, strengthen supervision, strictly prevent regulatory arbitrage, and effectively form a joint supervision force."

  Pang Ming believes that it is a long-term and arduous task to fully control the crimes committed in the securities market. The key is to strengthen the system construction with the principles of rule of law, specialization, marketization, and normalization, effectively deter market chaos, and promote the formation of A good market ecology and culture that respects the law and trustworthy will benefit the long-term and healthy development of the capital market.