Chinanews.com, February 7th. Zheng Xinjian, Director of the Fourth Procuratorate of the Supreme People’s Procuratorate and Director of the Intellectual Property Prosecutor’s Office, stated in an online interview with the Supreme People’s Procuratorate today that the Supreme People’s Procuratorate has strictly prosecuted finances "the entire chain" in the past year. The central government attaches great importance to the punishment of financial fraud in the capital market, and the Financial Committee of the State Council has made arrangements for many times.

  Zheng Xinjian said that with the development of social economy, the role of the capital market in serving the development of the real economy has become more prominent. The revision of the Securities Law marks a new historical stage in the development of China's capital market.

However, some illegal and criminal activities such as financial fraud, internal transactions, and market manipulation have seriously disrupted the order of the capital market.

  Zheng Xinjian believes that current securities and futures crimes present new, professional, hidden and profit-seeking characteristics.

Although the total number of cases is small, the amount involved is large and the impact is extensive, severely undermining the open, fair and healthy environment of the capital market, and infringing on the legitimate rights and interests of investors, especially small and medium investors.

From 2017 to September 2020, procuratorial organs across the country approved the arrest of 302 people for various securities and futures crimes and prosecution of 342 people.

  Zheng Xinjian stated that in the past year, in response to illegal crimes such as securities and futures, the procuratorial organs have mainly done the following tasks:

  First, the "full chain" strictly prosecuted financial fraud.

Listed companies’ fraudulent issuance, financial fraud and other illegal activities are “cancers” in the capital market. The central government attaches great importance to the punishment of financial fraud in the capital market, and the Financial Committee of the State Council has made arrangements for many times.

  For financial frauds in the capital market, the Supreme People’s Procuratorate insists on prosecuting the “full chain” strictly in accordance with the law. It not only punishes companies and enterprises that specifically implement the fraud, but also punishes the controlling shareholders and actual controllers of the organization and instigates the fraud; it also pursues those who help the fraud. Intermediary organizations have fully implemented the "zero tolerance" requirements for illegal crimes in the capital market.

Through the application of property penalties, the economic penalties for criminals of financial fraud will be increased, and the basic principle of crime, responsibility and punishment will be further reflected.

  The second is to strengthen the connection of executions to form a combined force.

In recent years, the procuratorial organs and the securities regulatory authorities have given full play to their functions, strengthened collaboration, and formed a joint effort to crack down on illegal and criminal activities in securities and futures in accordance with the law.

The "Minutes of the Working Meeting on Strengthening the Legal System Construction of the Capital Market" jointly formulated by the Supreme People's Procuratorate and the China Securities Regulatory Commission further clarified the various mechanisms for smooth execution and criminal connection.

  In addition, the Supreme People’s Procuratorate and the Securities Regulatory Commission have carried out a series of work to promote the improvement of legislation and law enforcement and judicial cooperation, such as making legislative recommendations to the Legislative Work Committee of the Standing Committee of the National People’s Congress, actively promoting the revision of relevant provisions on securities and futures crimes, and further tightening the legal network; strengthening the cooperation with the Securities Regulatory Commission And its dispatched agencies carry out normalized collaboration in various aspects such as information sharing, consultation and discussion, auxiliary case handling, and preventive publicity.

  The third is to give full play to the role of case guidance.

The seventeenth batch of guiding cases issued by the Supreme People’s Procuratorate includes two cases of securities crimes involving the use of undisclosed information transactions, illegal disclosure, and non-disclosure of important information, highlighting guidance in case handling and focusing on solving problems in the application of law.

On November 6, 2020, the Supreme People’s Procuratorate and the China Securities Regulatory Commission jointly issued 6 typical cases of securities crimes and 6 typical cases of securities violations, which concentratedly demonstrated the "zero tolerance" of the prosecutors and securities regulatory authorities in cracking down on securities and futures crimes. "The attitude has played a good warning role in enhancing the legal awareness of various subjects and investors in the capital market.

  The fourth is to strengthen specialization.

Securities and futures crimes involve a wide range of fields and strong professionalism, which puts forward higher requirements for judicial cases.

Most of the personnel engaged in securities and futures crimes are securities and futures practitioners or "experts" in this area. Prosecutors need compound talents who understand both the law and finance to improve their professional case handling capabilities to meet the needs of criminal punishment.

  To this end, the Supreme People’s Procuratorate has concentrated its superior case handling resources and established 7 procuratorial agencies’ securities and futures crime case handling bases in Beijing, Shanghai, Tianjin, Chongqing, Liaoning, Shenzhen, and Qingdao to accumulate practical experience in case handling and countermeasures. , Policy formulation, publicity and education of the rule of law, etc. to play a leading role in demonstration and radiation.

The Supreme People's Procuratorate also conducts joint training with the China Securities Regulatory Commission and its dispatched agencies, exchanges cadres on temporary posts, supports the construction of case handling bases, and cultivates professional case handling talents.