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Zhai Qingmin: Strengthening the responsibility of responsibility, exerting the joint efforts of all parties, striving to build a new pattern of investor protection in the capital market

May 15, 2019 17:46
source: SFC website

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Summary
[Zhu Qingmin: Strengthening Responsibility and Playing the Role of All Parties to Build a New Pattern of Capital Market Investor Protection] Serving the National Strategy and the People's Interests, Protecting the Legal Rights and Interests of Investors, Especially Small and Medium-sized Investors, Is the Duty and Mission of the Securities Regulatory Authority . We will set up the “National Investor Protection Promotion Day” on May 15 each year. It is hoped that through such a form, we will actively promote a rational investment culture in the whole society, strengthen the awareness of investor protection, and comprehensively build a new investor protection in the capital market. pattern. Take this opportunity to exchange some insights on investor protection. (CSRC)

  Speech by Vice Chairman Zhao Qingmin at the Launching Ceremony of "5·15 National Investor Protection Publicity Day"

Distinguished guests, friends:

good morning guys!

The establishment of the “National Investor Protection Promotion Day” is a major event in the Chinese capital market. I am very pleased to witness this historic moment with representatives of investors, news media, market institutions, judicial authorities and financial regulators. First of all, entrusted by Chairman Yi, on behalf of the China Securities Regulatory Commission, I would like to express my heartfelt gratitude to everyone for their long-term support for the development of the capital market and for the supervision work!

It is the duty and mission of the securities regulatory authorities to serve the national strategy and the interests of the people and protect the legitimate rights and interests of investors, especially small and medium investors. We will set up the “National Investor Protection Promotion Day” on May 15 each year. It is hoped that through such a form, we will actively promote a rational investment culture in the whole society, strengthen the awareness of investor protection, and comprehensively build a new investor protection in the capital market. pattern. Take this opportunity to exchange some insights on investor protection.

  1. Investors are the foundation of the development of the capital market

The capital market is a multi-symbiotic ecosystem. Investors are the cornerstone of maintaining the entire ecological operation and have an irreplaceable status and role. The experience of mature markets shows that the sustained and healthy development of the capital market is closely related to the growth and maturity of investors. The concept, behavior and structure of the investor group largely determine the overall development level of the capital market.

From the essential characteristics of the capital market, the capital market is ultimately a professional market for investment and financing. Investment and financing are interdependent and interact, forming the most basic, fundamental and important relationship in the capital market ecosystem. As the provider of market liquidity, the influence of market expectation, the bearer of risk, and the participants of corporate governance, investors' behavior directly affects the functions of capital market resource allocation, asset pricing and mitigation risk.

From the historical evolution of the capital market, the emergence and development of the securities markets of various countries are inseparable from the participation and promotion of investors. Whether it was the "Sycamore Tree Agreement" at the end of the 18th century or the "Great Depression", the US established the Securities and Exchange Commission; whether it was the emergence of the investor protection fund in the mid-20th century or the financial crisis in 2008, strengthening investor protection became a global financial regulator. The consensus of reform. Behind it is the investor's appeal and strength. The history of capital market system reform and innovation is also a history of the development of investor protection purposes and concepts.

From the perspective of the development of capital markets, investors as a strategic resource are an important support and embodiment of the attractiveness and vitality of capital markets in various countries. At this stage, the major capital markets in the world generally focus on strengthening their core competitiveness in two aspects: on the one hand, they are striving for promising high-quality enterprises, and on the other hand, they are paying more and more attention to attracting the participation of global investors. Some countries implement registration management for domestic investors to participate in securities and futures trading in other countries, and accordingly propose regulatory requirements.

Reviewing the development process of China's capital market in the past 30 years, investors have always shared the wind and rain and common growth with the market, and made positive contributions to the construction and development of the capital market. This is the most worthy of our cherish! Today, China has the largest and most actively traded investor group in the world. The number of investors has reached 150 million, of which more than 95% are small and medium-sized investors. This is rare in the world and is also the capital of China at this stage. The basic characteristics of the market. How investor protection is done is directly related to the vital interests of hundreds of millions of people. It is the embodiment of the capital market practice of people-centered development. Respecting investors, fearing investors, and protecting investors are the unshirkable responsibilities of various market players.

  Second, protecting the legitimate rights and interests of investors is the eternal theme of supervision

The capital market is highly professional and has high risks. Under the conditions of “capital majority decision” and publicized centralized transactions, small and medium-sized investors are compared with listed companies and major shareholders, intermediaries and institutional investors in terms of financial strength and information. Access and risk tolerance are relatively weak, and are vulnerable to unfair treatment or even violations. Protecting small and medium-sized investors is to establish an open and transparent market environment so that they can obtain fair trading opportunities and receive fair treatment.

The Party Central Committee and the State Council attach great importance to the protection of investors in the capital market. General Secretary Xi Jinping emphasized that it is necessary to form a multi-level capital market system with complete financing functions, solid basic systems, effective market supervision, and effective protection of the legitimate rights and interests of investors. The CSRC insisted on protecting the legitimate rights and interests of investors as the starting point and the foothold of the work. In these years, positive progress has been made in the cultivation of investor protection concepts, system construction, mechanism optimization, and platform construction. The first is to uphold the concept of investor protection in the market-based rule of law. According to the Securities Law, the Fund Law, the Regulations on the Administration of Futures Trading, and other legislative purposes and provisions, the protection of investors' right to know, participation, income, and claims is the core, and investor protection is carried out throughout the issue. The whole process of supervision, such as listing, market trading, institutional supervision, and inspection and enforcement. The second is to initially form an effective investor protection organization system. It has successively established two specialized agencies, the Securities Investor Protection Fund and the Small and Medium Investor Service Center. Recently, the investor protection work leading group was set up to further strengthen the overall coordination and promotion of investor protection. The third is to basically construct an investor protection work mechanism that is in line with the actual situation in China's market. It has established a three-dimensional protection mechanism covering appropriate management, shareholding exercise, diversified dispute resolution, advance payment, support litigation and demonstration judgments, and helped investors to obtain compensation of about 2.5 billion yuan. In addition, the administrative reconciliation pilot has also been implemented in the near future. The fourth is to create an investor service platform with high standards. The 12386 investor service hotline, China Investor Network, and investor education base will be set up to provide free education services for hundreds of millions of investors, and more than 600,000 investors will be dealt with. The practices and experience of Chinese investor protection have been obtained by the International Monetary Fund and the world.bankThe assessment is positive. in the worldbankIn the "Global Business Environment Report of 2019", China's "protecting small and medium-sized investors" has significantly increased the number of individual indicators by 55.

At the same time, we are also clearly aware that there are still many challenges and problems in investor protection in the capital market. First, the rapid development of the market puts higher demands on investor protection. For example, in the context of the full opening of the securities and futures market, the structure and behavior of investors have undergone great changes. Cross-border regulatory enforcement and investor protection are facing new challenges. After the introduction of new regulations, funds, investment consultants and other industries have undergone profound changes. And transformation, bringing new issues to investor protection and supervision. Second, some market entities have failed to implement investor protection responsibilities. Some listed companies' major shareholders and actual controllers lack due respect to investors, and some even disregard the legitimate rights and interests of investors. Some intermediaries implement the investor suitability management system is not strict, and does not really "know your customers." Some institutions focus on market development, light rights protection, heavy business development, light risk disclosure, and even individual practitioners violate professional ethics and infringe on the legitimate rights and interests of investors. Third, the awareness of self-protection of small and medium-sized investors is not strong. The concept of “buyers are at their own risk and at their own risk” has not been deeply rooted in the heart, and the investment culture has not yet formed. Some investors blindly follow the trend, superstitious gossip news; some investors know that the stock is about to withdraw from the market, but also fortunately bought. In addition, the capital market investor compensation and relief mechanism needs to be further explored and improved.

  Third, to strengthen investor protection, we need to work together and take measures.

Strengthening investor protection is a fundamental task related to the healthy development of the capital market. It is a work that requires the participation and support of all parties. It must be constantly grasped and gathered together to effectively implement and embody the concept of “big insurance” into practice. Investor protection work has been sounded and effective.

First, make every effort to improve the quality of listed companies. Improving the quality of listed companies is the best protection for investors and the key to investors' investment value and sharing of economic growth dividends. At the annual meeting of listed companies at the weekend, how to improve the quality of listed companies and better protect the legitimate rights and interests of investors, especially small and medium-sized investors, will be fully elaborated by the chairman. The core is to establish "four awe" and stick to it. "Four bottom lines." Through the joint efforts of the China Securities Regulatory Commission and all relevant parties, we will achieve: to provide investors with a real and transparent listed company with effective governance and effective internal control.

Second, strengthen the responsibilities of exchanges and intermediaries. As the organizer of market transactions and the bearer of front-line supervision, the Exchange shoulders the important responsibility of providing investors with safe, convenient and efficient trading services and open and fair trading order. It is necessary to further optimize the trading system, further improve the abnormal trading monitoring standards, strengthen the supervision of the whole process of transactions, and allow investors to have clear expectations of fair trade.

Intermediary agencies are the bridge connecting investors and financiers. They play a good role as “gatekeepers” in sponsoring underwriting, accounting auditing, rating evaluation, and legal services, which are essential for protecting the legitimate rights and interests of investors. Securities and futures institutions, accounting firms, law firms and other intermediaries should effectively blame and responsibilities, strictly implement the basic duties of customer service and management, investor protection, strengthen the appropriate management of investors, and establish and improve investor protection rewards and punishments. mechanism. Securities companies, fund companies, futures companies and private equity managers must actively fulfill their fiduciary duties to customers, fully implement the principle of “know your customers”, strengthen customer classification and dynamic evaluation, and sell appropriate products to appropriate investors. It is necessary to take the initiative to undertake the obligation of investing in knowledge popularization, risk warning and information consultation, and timely and properly resolve investor demands in accordance with the law. This is the unshirkable responsibility of securities and futures institutions. Companies and employees who do not abide by laws, do not ethics, and infringe on the legitimate rights and interests of investors must be held accountable.

Third, effectively combat violations of the capital market. Without punishment, there is no protection. We must continue to purify the market ecology, and make all kinds of violations of laws and regulations in the capital market real, serious, and critical, so that the new wind will take root and let all kinds of market players take their eyes seriously and take the protection of investors' rights seriously. We will highlight the key points of law enforcement, adhere to accurate investigation and targeted attacks, and resolutely crack down on illegal and illegal behaviors that disrupt market order, undermine fair trade principles, and infringe on investors' interests. Strengthen coordination with the public security law organs, promote the improvement of the administrative law enforcement and criminal justice linkage work mechanism, and strive to improve the efficiency of inspection and law enforcement.

Fourth, make great efforts to build a large pattern of investor protection. Through the joint participation and support of relevant ministries, local governments, market institutions, news media and other relevant parties, a large pattern of investor protection “legal protection, regulatory protection, self-discipline protection, market protection and self-protection” has been formed. Highlights include “binding leverage” that incites the regulatory system. Promote the establishment of a class litigation system in line with the actual conditions of the Chinese market, improve the civil infringement litigation system for securities infringement, improve the model judgment and other mechanisms, and study and establish a special fund for investors. At present, the small and medium-sized investor service centers and other institutions actively explore the dispute diversification and civil litigation by means of dispute mediation, support for litigation rights protection, and promotion of model judgments due to the illegal losses of the listed company’s major shareholders and actual controllers. A valid new path. These innovative measures deserve the attention of the majority of small and medium investors, and I believe that they will play a greater role in protecting the rights and interests of investors. The “communication leverage” that incited public opinion propaganda. All kinds of media, including self-media, are important channels for public investors to understand policies, obtain information, and form expectations. It is hoped that the mass media and practitioners will shoulder social responsibilities, abide by professional ethics and professional ethics, uphold the position and principle of objective, impartial and independent, and deliver voices, popularize knowledge and advocate ideas to investors, and effectively become the leader and promoter of investor protection. . Inciting education to guide the "influence lever." Continue to promote the comprehensive integration of investor education into the national education system and enhance the public financial literacy. Further play the role of various types of investor service platforms, innovate the form of investment, enrich the means of investment, expand the carrier of investment, actively advocate rational investment, value investment, long-term investment, and cultivate a mature and rational investment culture.

Fifth, deepen the reform of the basic system of the capital market. Reform is the magic weapon to solve the problem of investor protection. It is necessary to further improve the multi-level capital market system, increase the reform of the system of issuance, trading, delisting, and information disclosure to provide investors with more products and better services. Accurately do all kinds of risk prevention and resolution work, effectively combat illegal securities futures activities, and keep investors away from market chaos. Increase the use of scientific and technological intelligence in the protection of investors, relying on the organic combination of "human intelligence" and "tact" to enhance the level of investor protection. Actively innovating work methods and methods, we must not only do more practical things that investors can see, feel, and benefit, but also be good at making plans for the development of the capital market, laying the foundation, and benefiting the long-term.

Finally, I want to specifically remind investors about their self-protection. Self-helper, Tian help. The key to protecting the legitimate rights and interests of investors lies in the investors themselves. We hope and appeal that investors should consciously strengthen risk awareness and rational thinking, strengthen the study of relevant knowledge of the capital market, choose products that are suitable for them, and do not follow suit blindly. It is necessary to learn the law, know the law, understand the law, abide by the law, and consciously stay away from illegal financial activities, exercise powers in accordance with the law, and enhance self-protection.

Distinguished guests, friends! Protecting investors is a sacred and glorious mission and a common expectation for hundreds of millions of investors. Let us join hands, act positively, practice the people-centered development philosophy, think what investors think, think about the worries of investors, solve the difficulties of investors, and jointly create investor protection and capital market development. The new situation.

thank you all!

(Article source: SFC website)

                (Editor: DF075)

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