China Securities Regulatory Commission: 98 administrative penalty decisions were made in the first half of the year, totaling 3.839 billion yuan
Our reporter Wu Xiaolu
On August 7, the China Securities Regulatory Commission stated that in the first half of the year, it will resolutely implement the decision and deployment of the Party Central Committee and the State Council on capital market supervision and law enforcement, and adhere to the “four awes” in accordance with the overall requirements of the State Council’s Financial Committee of “building a system, non-intervention, and zero tolerance” "One joint force" supervision concept, severely crack down on the financial fraud of listed companies, market manipulation, insider trading and other securities frauds, and make every effort to maintain the healthy and stable development of the capital market. From January to June this year, 165 new cases of various types were added, 154 were completed, 59 suspected securities crime cases and clues were transferred to the public security organs, 98 administrative punishment decisions were made, and the total fines and confiscated amounts were 3.839 billion yuan.
The China Securities Regulatory Commission stated that the main features of the cases in the first half of the year were as follows: the impact of financial fraud was severe and the foundation of market integrity was seriously undermined. In the first half of the year, 35 listed companies including Yihua Life, Yudiamond, and VV were filed for investigation on suspected violations of information disclosure, and 43 cases of misrepresentation were imposed administrative penalties. Some cases had a bad market impact. Tang Wanxin and others manipulated Steyr’s fictitious technology transfer to increase inflated profits of 280 million yuan, Oriental Jinyu’s fictitious jade rough sales increased inflated profits of 350 million yuan, Changyuan Group used the commissioned agency business to confirm revenue in advance, and the Nianfu supply chain to cash in on the restructuring performance It promised to put “toxic” assets into Ningbo Dongli, fictitious overseas business and other inflated profits of 430 million yuan.
Major shareholders and actual controllers occupy funds and illegal guarantees have seriously damaged the interests of listed companies and small and medium shareholders. In the first half of the year, 24 cases of non-disclosure of such material information were filed for investigation, and some cases involved vicious transfer of benefits.
Intermediary agencies failed to perform their duties diligently, lacked independence, and lacked the role of gatekeepers. In the first half of the year, six accounting firms were suspected of failing to perform due diligence in auditing projects. Double-checks were carried out, and Zhengzhong Zhujiang Certified Public Accountants was notified in advance of administrative penalties. The investigation found that some audit institutions cooperated with listed companies to forge bank deposits and inquiries, and some did not maintain due professional suspicion in income and related party audits, or had major deficiencies in risk assessment and control testing. The audit report contains false records. Some sponsor institutions are not strict in their practice and fail to perform the necessary review procedures.
The frequent occurrence of insider trading cases has been curbed to a certain extent, and there are still many cases of vicious market manipulation. In the first half of the year, the number of insider trading cases showed a downward trend. Unfair transactions using mergers and acquisitions and large fluctuations in performance were still frequent, and loss-avoidance insider trading cases increased year-on-year. From the perspective of market manipulation cases, cases where the actual controller cooperates with market institutions to manipulate the company’s stock price often occur. The actual controller of Taiyiyun, a company listed on the NEEQ, was in compliance with the conditions of the innovation layer and pushed up the company's stock price and was investigated. The actual controller of a listed company was suspected of using hundreds of securities accounts to raise the stock price to cooperate with the shareholding reduction, and illegally profited hundreds of millions of yuan.
The China Securities Regulatory Commission stated that the next step will be to fully implement the work requirements of the State Council’s Financial Committee on "zero tolerance" for illegal activities in the capital market, and resolutely crack down on listed companies’ financial fraud, vicious market manipulation and insider trading and other major violations of laws and regulations. . (Securities Daily)