Tian Zhongfang, senior reporter at The Paper
The China Securities Regulatory Commission has further strengthened its work in four aspects: improving the quality of listed companies, strengthening the supervision of listed companies, strengthening the supervision of securities companies and public funds, and strengthening the construction of the China Securities Regulatory Commission system itself, highlighting "strengthening the foundation" and "strict supervision and management."
Specifically, on March 15, the China Securities Regulatory Commission formulated and issued the "Opinions on Strictly Controlling Issuance and Listing Access and Improving the Quality of Listed Companies from the Source (Trial)" and "Opinions on Strengthening the Supervision of Listed Companies (Trial)" Four policy documents including "Opinions on Strengthening the Supervision of Securities Companies and Public Funds and Accelerating the Construction of First-Class Investment Banks and Investment Institutions (Trial)" and "Opinions on Implementing Strong Political Capabilities, Strong Work Styles and Strong Standards to Comprehensively Strengthen the Construction of the China Securities Regulatory Commission System" .
On the same day, the China Securities Regulatory Commission also promulgated and implemented the "Regulations on On-site Inspection of IPO Enterprises" and the "Regulations on the Supervision of Initial Public Offerings and Listing Guidance".
After the intensive deployment of new policies, what will the China Securities Regulatory Commission do next?
Strengthen supervision of investment banking business
A number of policies released this time focus on the "entry end" of issuance and listing, especially on strengthening the supervision of sponsor institutions and improving the quality of practice.
Market participants said that the further consolidation of the "gatekeeper" responsibilities of investment banks requires that the practice philosophy of securities firms is no longer simply to compete for quantity, scale, and focus on short-term rankings, but to pursue the formation of a profession-based, reputation-oriented, and responsibility-oriented approach. , a quality-winning practice ecosystem.
It is reported that in the next step, the regulatory authorities will further implement relevant opinions from five aspects and strengthen the supervision of investment banking business.
First, we will continue to carry out special inspections with wider coverage and greater intensity. It is expected to achieve full coverage of on-site inspections of all companies in the next one or two years, and promote the rectification of problematic securities firms through strict accountability.
We will take strict supervisory measures in accordance with the law for companies that find problems during inspections, insist on "double penalties" for institutions and personnel, and make good use of "qualification penalties" and "top penalties" in accordance with the law, until their sponsorship business qualifications are suspended.
Second, we will be strictly accountable for issues of market concern such as performance changes and withdrawals upon investigation.
This time, the China Securities Regulatory Commission issued and implemented the "Regulations on On-site Inspection of IPO Enterprises" and the "Regulations on the Supervision of Initial Public Offerings and Listing Counseling", which further clarified that "investigations must be carried out even after withdrawal" and standardized the counseling work.
Market participants said that the Shenzhen Stock Exchange recently held accountable the withdrawn projects Xintianxia and Huazhirong, emphasizing that sponsors should do a solid job in due diligence, make prudent declarations, and resolutely abandon the "breaking through" mentality.
In the next step, the regulatory authorities will continue to carry out special inspections such as "high rejection" and "performance change". The inspection results will be fully reflected in the classified evaluation of securities companies and the quality evaluation of investment banks, and urge sponsors to promptly correct improper practices.
Third, the China Securities Regulatory Commission will work with local agencies, exchanges and industry associations to strengthen investment banking business information sharing, regulatory linkage and law enforcement coordination, further improve the efficiency of regulatory law enforcement, and implement early identification, early warning, early exposure and early disposal of violations of laws and regulations.
Fourth, the China Securities Regulatory Commission will continue to improve the "Measures for the Quality Evaluation of Investment Banking Business of Securities Companies", further leverage the "baton" role of classified evaluation of securities companies and the quality evaluation of investment banking business, improve the publicity mechanism for negative evaluations of sponsor representatives, and tighten reputational constraints. , let external supervision be strengthened.
Fifth, in response to the requirements put forward by the "Opinions" to strengthen the supervision of the integrity of investment banking institutions and employees, the China Securities Regulatory Commission will establish and improve a comprehensive punishment mechanism for bribery by industry institutions and employees, focusing on cracking down on outstanding issues such as improper shareholding and transfer of interests, so that The "bad apples" who hunt and corrode supervisory cadres are hunted and beaten by everyone and restricted everywhere, so as to create a clean and upright industry ecosystem.
Enhance the investment value of listed companies
In addition to controlling the "entry port", it is reported that the China Securities Regulatory Commission will take multiple measures to further enhance the investment value of listed companies.
Specifically, in terms of shareholding reduction, the China Securities Regulatory Commission will issue departmental regulations based on the current shareholding reduction regulations, enhance the legal status of the regulations, and enhance the stability and authority of the system.
In terms of specific regulations, for major shareholders and actual controllers, we will continue to strictly require restrictive regulations on shareholding reduction; for various detours to reduce shareholdings, we will insist on applying inferences from one case to another, and comprehensively regulate the system through divorce, refinancing, securities lending, dissolution and separation, and dissolution of consensus. Action relationships, stock pledge closing and other detours to reduce holdings to ensure that no dead ends are left.
"After the release of the new regulations, although there have been cases of divorce and splitting of shares, all of them were implemented in accordance with the relevant requirements. In the announcement, both parties to the divorce made it clear that they will continue to abide by the relevant provisions of the shareholding reduction rules. There is no faster pace of shareholding reduction between the parties after the divorce. The issue of secretly reducing holdings," said a person close to the regulator.
On the other hand, for venture capital institutions to reduce their holdings, the China Securities Regulatory Commission will continue to adhere to differentiated policy arrangements, guide more institutions to invest early and invest small, and promote early capital formation.
In terms of regulatory enforcement, we will further improve the mechanism and comprehensively strengthen the supervision of illegal holding reductions through front-end technical control, strengthened clue discovery, and severe punishment afterwards.
Continue to order violators to repurchase, and increase administrative penalties and transaction restrictions for those who refuse to correct in a timely manner or if the circumstances are serious.
In addition, the China Securities Regulatory Commission will further strengthen the regulatory constraints on dividends.
For companies that have not paid dividends for many consecutive years or have a low dividend ratio, other risk warnings will be implemented for the company based on policies such as mandatory information disclosure and restrictions on the reduction of holdings by controlling shareholders, combined with other indicators.
Promote high-quality listed companies to pay dividends multiple times a year, support listed companies in implementing dividends based on their three quarterly reports, and have them arrive before the Spring Festival to enhance investors' sense of gain.
Guide industry organizations to continuously strengthen the mechanism for binding interests with investors
In the new policy released on March 15, the China Securities Regulatory Commission made it clear that it will strengthen the core capabilities of investment research of public funds, improve the evaluation index system of investment research capabilities, abandon the phenomenon of star fund managers, and strengthen "platform, team-based, integrated, and multi-strategy" Construction of investment research system.
Analysts say that in recent years, as the fundamental market volatility has increased, problems such as declining investment performance of some industry institutions, large high-end issuances, and poor investors' sense of gain have gradually been exposed, which has affected the overall image of the public fund industry to a certain extent. .
"Regulatory agencies attach great importance to the above issues, continue to improve systems and mechanisms, guide industry institutions to continuously strengthen the mechanism for binding investors' interests, implement the first systematic rate reform in the 26 years since the industry was established, and strive to enhance investors' sense of gain; at the same time, establish and implement The regular review mechanism for the issuance scale and investment performance of equity funds of industry institutions has restricted managers with large product issuance scales and poor investment performance during the high market stage in terms of awards and evaluations, innovative business, etc., and has achieved positive results so far." The above-mentioned person close to the regulator said.
Market participants said that for public funds, it is necessary to continue to vigorously develop equity funds, steadily increase the proportion of equity funds, and achieve "increase in total volume and optimization of structure"; at the same time, continue to improve the ability to serve medium and long-term funds, and increase The introduction of various types of medium and long-term funds will be strengthened.
This is an important manifestation of functionality, which will help further enhance the market leadership of the industry, promote the industry to better serve the development of the real economy, and serve the stable and healthy operation of the capital market.
It is reported that the next step will be to strengthen the compliance and risk control capabilities of the public fund industry.
Based on the risk profile of industry institutions and the classified evaluation of fund managers, we will continuously optimize the fund manager evaluation system, highlight the regulatory orientation based on compliance and risk control, and link it with administrative licensing and innovative business to truly "reward the good and limit the bad." ", don't let "honest people" suffer.
Among them, risk monitoring and investment operation planning will be carried out regularly, the risk exposure of key institutions and key products will be reduced in a timely manner, and risk cases will be dealt with decisively to ensure the stable operation of the industry.
Implement classified supervision arrangements for fund account subsidiaries and independent fund sales institutions, and resolutely promote market clearing for institutions that do not have the ability to develop their business or have serious violations of laws and regulations.
On the other hand, we will further promote the construction of industry culture and continue to strengthen the management of employees.
Publish an industry self-discipline convention, revise the employee management rules, strengthen the resignation requirements of fund managers when the fundraising period, closed period, management product is less than one year, etc., and strictly punish employees who violate professional ethics and social ethics and cause adverse social impact. Strict and severe disciplinary sanctions such as being added to the blacklist and canceling fund qualifications will be imposed to achieve the goal of "once a violation, you will be restricted everywhere."
The above-mentioned market participants emphasized that those who engage in "rat warehouses", false market value management, etc. that seriously infringe the interests of investors will be resolutely eliminated regardless of their product management scale or market reputation.