Last year, the representatives of the National People's Congress and the National People's Congress were concerned about the capital market, and the China Securities Regulatory Commission disclosed the relevant responses in a centralized manner.

  On the evening of February 18, the CSRC's official website published 37 replies to the proposals proposed by the representatives of the National People's Congress and the National People's Congress in 2021.

Among them, there are 23 replies to the relevant proposals of the Fourth Session of the Thirteenth National People's Congress, and 14 replies to the relevant proposals of the Fourth Session of the Thirteenth National Committee of the Chinese People's Political Consultative Conference.

  In terms of content, the reply content disclosed by the CSRC this time involves the improvement of the stock trading supervision system for securities practitioners, the reform of the registration system, the supervision of listed companies, the regional equity market and other hot issues in the next development of the capital market.

  Then, what are the next steps of the CSRC for the development of related work? The reporter from The Paper (www.thepaper.cn) sorted out the top ten highlights.

Aspect 1: In-depth study of the relevant regulations on stock trading for securities practitioners to strengthen refined management

  The China Securities Regulatory Commission stated that in order to ensure the fairness of the market and prevent damage to the interests of investors due to information asymmetry, since the promulgation of the "Securities Law" in 1998, it has been stipulated that securities practitioners shall not hold, buy or sell stocks.

Although the new "Securities Law" has cancelled the provisions prohibiting securities practitioners from buying and selling stocks, in order to maintain the order and fairness of the securities market and protect the legitimate rights and interests of ordinary investors, the legislature still retains the relevant provisions.

  The China Securities Regulatory Commission also pointed out that considering that securities companies are market-oriented entities, and many companies are already listed companies, there is an appeal to adopt a market-oriented management model, and it is objectively necessary to implement equity incentive plans or employee stock ownership plans to attract talents.

Therefore, Paragraph 3 of Article 40 of the Securities Law has made an exemption arrangement, stipulating that employees of securities companies that implement equity incentive plans or employee stock ownership plans may hold or sell capital in accordance with the regulations of the securities regulatory agency of the State Council. Company stocks or other securities of the nature of equity.

  The China Securities Regulatory Commission said that in the next step, it will conduct in-depth research on the relevant regulations on the stock trading of securities practitioners, further strengthen the refined management of securities practitioners, strengthen the internal management and external restraint mechanisms of securities companies, and gradually consolidate "compliance, integrity, professionalism, and Research and advance related work on the basis of the "stable" industry culture.

  At the same time, the China Securities Regulatory Commission emphasized that it will further accelerate the revision and improvement of criminal prosecution standards, misrepresentation of civil compensation judicial interpretations, etc., continue to deepen cooperation with judicial organs, adhere to "zero tolerance" to combat securities and futures illegal and criminal acts, and effectively improve the capital market. cost of crime.

Aspect 2: Strengthening the supervision of listed companies' continuous information disclosure in three aspects under the registration system

  Among the replies to this centralized disclosure, there are 3 items related to the reform of the issuance registration system, namely "Proposal on Further Improving the Stock Issuance System", "Proposal on Giving Full Play to the Professional Strength of Securities Service Institutions and Comprehensively Promoting the Registration System for Stock Issuance", "Proposal on Abolishing New Share Placement and Improving the Registration-Based Supporting System".

  The China Securities Regulatory Commission stated that in recent years, it has promoted the formation of a "three-step" registration system reform layout from the Science and Technology Innovation Board to the ChiNext, and then to the entire market. A new situation for deepening capital market reform.

  The China Securities Regulatory Commission pointed out that the registration system reform places special emphasis on information disclosure supervision. Through multiple measures, a strict information disclosure system has been established in an all-round way, and the registration system concept centered on information disclosure has been practically implemented. To improve and perfect in other aspects, to promote enterprises to improve the quality of information disclosure.

  The China Securities Regulatory Commission emphasized that in the supervision of continuous information disclosure of listed companies, the following three aspects will be focused on:

  The first is to improve the working mechanism of random spot checks for on-site inspections of listed companies, highlight problem orientation and risk orientation, further improve the ability to find problems, and improve the quality and efficiency of supervision.

  The second is to revise the "Administrative Measures for Information Disclosure of Listed Companies", in accordance with the requirements of the new "Securities Law", to improve the principles of information disclosure and regular and temporary reports, further emphasize the responsibilities of directors, supervisors, and higher authorities, and focus on solving the problems faced in the supervision of information disclosure. Outstanding issue.

  The third is to speed up the revision of the periodic reporting standards of listed companies, further standardize the preparation and information disclosure of periodic reports of listed companies, and study the disclosure requirements of newly added administrative penalties for environmental issues, capital occupation, and violation guarantees, so as to protect the legitimate rights and interests of investors.

Aspect 3: Promoting the further opening of my country's exchange bond market to the outside world

  The China Securities Regulatory Commission stated that expanding the opening up of my country's bond market is conducive to promoting the internationalization of the RMB and promoting the capital market to better serve the real economy.

In recent years, the CSRC, together with relevant departments, has actively and steadily promoted the opening of the exchange bond market to the outside world, and continued to improve various institutional arrangements for the bond market.

  Among them, the China Securities Regulatory Commission pointed out that in order to expand the opening of the exchange bond market to the outside world, it is actively studying and expanding the channels for foreign institutional investors to enter the exchange bond market, enriching the investor structure, and expanding diversified sources of funds.

  In September 2020, the China Securities Regulatory Commission, together with the People's Bank of China and the State Administration of Foreign Exchange, publicly solicited opinions on the announcement of foreign institutional investors' investment in the bond market, and plans to allow foreign institutional investors who have entered the inter-bank bond market to invest in the exchange bond market.

At the same time, the CSRC is also actively exploring and studying the bond investment by foreign investors through the interconnection mechanism between the exchange market and overseas markets.

Aspect 4: The establishment of a normalized delisting mechanism will be regarded as an important part of comprehensively deepening the reform of the capital market

  The China Securities Regulatory Commission stated that on December 31, 2020, it guided the Shanghai and Shenzhen stock exchanges to issue and implement new delisting regulations and transitional arrangements.

In this reform of the delisting system, we insist on giving full play to the role of the market, respecting the market, respecting the law, strengthening the coordination with the registration system reform, absorbing the experience of the delisting reform of the Science and Technology Innovation Board and the Growth Enterprise Market, and promoting the performance of trading indicators such as stock price and market value. It focuses on considering the sustainable operation ability of listed companies and promotes the timely clearing of "shell companies"; clarifying and refining specific standards, and enhancing the operability of delisting standards for standardized operations and major violations.

  The CSRC pointed out that 2020 is the first fiscal year for the implementation of the new delisting regulations and transitional arrangements.

Through strict delisting supervision and consolidating the responsibilities of intermediaries, the effect of the new delisting regulations has begun to appear.

In the next step, the establishment of a normalized delisting mechanism will be regarded as an important part of comprehensively deepening the reform of the capital market.

  These include broadening multiple exit channels, strengthening delisting supervision, speeding up the formulation of relevant investor protection systems, and strengthening the whole-process and full-chain supervision and accountability of issuance and listing, refinancing, mergers and acquisitions, delisting, and regulatory enforcement.

Aspect 5: Agree that those responsible for financial fraud in listed companies must be severely investigated for criminal and civil liability

  The CSRC emphasized that the truthful, accurate, complete, timely and fair disclosure of information by listed companies is an important foundation for the healthy and orderly operation of the securities market.

Financial fraud seriously challenges the seriousness of the information disclosure system, seriously undermines the foundation of market integrity, and seriously damages the interests of investors. It is a "cancer" of the securities market. It must be resolutely and severely cracked down in accordance with the law, and relevant personnel shall be held legally responsible.

  The China Securities Regulatory Commission took a clear-cut stand and agreed with the proposal that those responsible for financial fraud of listed companies must be severely investigated for criminal and civil liability.

  The China Securities Regulatory Commission stated that it has been resolutely and strictly punished in accordance with the law for major violations of laws and regulations such as financial fraud.

In the next step, we will resolutely implement the "Opinions" issued by the Central Office and the State Council, fully implement the work policy of "zero tolerance", make full use of the responsibilities conferred by the law, and crack down on vicious illegal acts such as financial fraud and fraudulent issuance, and resolutely Investigate relevant institutions and personnel for their illegal responsibilities.

  The CSRC also pointed out that it will work with the Supreme People's Procuratorate and the Ministry of Public Security to study and improve the standards for filing and prosecuting securities and futures criminal cases, and further enhance the scientific and reasonable standards for filing and prosecuting criminal cases.

Work with the High Court to study and formulate judicial interpretations on the application of law in criminal cases such as fraudulent issuance of securities, illegal disclosure, and non-disclosure of important information, further clarify relevant conviction and sentencing standards, and severely punish crimes of financial fraud in accordance with the law.

Aspect 6: Actively promote the interconnection between regional equity markets and market supervision and management departments

  The China Securities Regulatory Commission stated that the regional equity market is a private equity market that mainly serves small and medium-sized enterprises in the provincial administrative region, and is an important part of the multi-level capital market system. It has played an active role in financing channels for micro-enterprises.

Registration and custody is the foundation of equity financing, equity pledge financing and trading in the regional equity market, and is one of the important functions of the market.

  The CSRC pointed out that it is actively implementing relevant document requirements, coordinating and promoting the interconnection of information between regional equity market registration and settlement institutions and market supervision and management departments, and constantly exploring the realization form of the equity registration information docking mechanism, but there has been no substantial progress yet.

In the next step, we will continue to actively promote the establishment of an information docking mechanism between regional equity markets and market supervision and management departments to strengthen interconnection.

Aspect 7: Fully implement the "zero tolerance" law enforcement concept, and effectively play the role of "gatekeeper" in the capital market of intermediary institutions

  The China Securities Regulatory Commission pointed out that at present, the supervision of intermediaries and practitioners in the IPO process has been strengthened through various means.

However, the limitation of the rights of intermediaries and the establishment of compensation mechanisms still need to be further adapted to the spirit of the Civil Code and related rules, and should be resolved mainly through consultation between enterprises and intermediaries.

  The CSRC pointed out that in the next step, the law enforcement concept of "zero tolerance" will be fully implemented, the supervision of intermediaries such as sponsors and accounting firms will be further strengthened, the responsibilities of intermediaries will be strictly enforced, and the intermediaries and their practitioners will be urged to return to their positions. Responsibility, effectively play the role of "gatekeeper" in the capital market, and safeguard the legitimate rights and interests of issuers and investors.

Point 8: Supervision of Internet consumer financial asset securitization business in accordance with laws and regulations

  The China Securities Regulatory Commission pointed out that the CPC Central Committee and the State Council attach great importance to the standardized development of online platform enterprises, and have made a series of important arrangements and set clear requirements for strengthening the financial supervision of platform enterprises and regulating the order of platform economic competition.

  The China Securities Regulatory Commission stated that it will strictly implement the spirit of the relevant instructions and supervise the Internet consumer financial asset securitization (ABS) business in accordance with laws and regulations.

Internet financial platforms that issue ABS products on exchanges must strictly follow our business rules on ABS issuance, trading and information disclosure, and must comply with the regulatory requirements of the industry authorities on the leverage ratio of small loan companies.

  The China Securities Regulatory Commission emphasized that at present, the consumer finance ABS products in the exchange market are operating normally and there is no risk.

Point 9: Support eligible new energy vehicle companies to list and raise funds in the capital market

  The China Securities Regulatory Commission stated that smart electric vehicles are a key area for the development of the new energy vehicle industry. The People's Bank of China and the China Securities Regulatory Commission attach great importance to financial support for the development of the smart electric vehicle industry.

On the one hand, support eligible new energy vehicle companies to list on the Science and Technology Innovation Board.

On the other hand, it provides credit policy support for the field of new energy vehicles.

  The China Securities Regulatory Commission pointed out that in the next step, the People's Bank of China and the China Securities Regulatory Commission will combine their respective functions to improve the financial service system for new energy vehicles, and guide financial institutions to meet the reasonable financing needs of new energy vehicle enterprises in accordance with the principles of risk control and business sustainability, and support qualified enterprises. of new energy vehicle companies listed on the capital market for financing.

Point 10: Support qualified foreign-funded enterprises and enterprises from countries along the “Belt and Road” to list on A-shares

  The China Securities Regulatory Commission pointed out in its reply to the "Proposal on Piloting the Listing of High-Quality Enterprises along the Belt and Road" in my country's A-shares, supporting qualified foreign-funded enterprises to list on A-shares for financing.

At present, there are no special conditions for foreign-funded enterprises to list in China.

At the same time, actively promote the domestic issuance pilot of eligible red chip enterprises.

  The CSRC pointed out that in the next step, it will continue to implement the relevant decisions and arrangements of the CPC Central Committee and the State Council. Under the unified command and coordination of the Financial Stability and Development Committee of the State Council, and in accordance with the principle of consistency between domestic and foreign investment, it will support qualified foreign-funded enterprises and those along the “Belt and Road”. The listing of state-owned enterprises on the A-share market promotes the high-level institutional opening of the capital market and deepens the international cooperation in the joint construction of the "Belt and Road".

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