The China Securities Regulatory Commission will determine May 15 as the “5·15 National Investor Protection Publicity Day”, hoping to actively promote a rational investment culture in the whole society, strengthen investor protection awareness, and comprehensively build a new pattern of capital market investor protection. The market expects that under the joint efforts of the participants in the market, the concept of “awe-inspiring investors” is more deeply rooted in people's minds, the system for protecting investors is more perfect, and the dividends for returning investors are more abundant.
Small and medium-sized investors are the main participating groups in China's current capital market, but their ability to resist risks and self-protection is weak, and their legitimate rights and interests are highly vulnerable. The CSRC regards the protection of the legitimate rights and interests of investors as a vocation, and comprehensively implements investor protection requirements in the system construction and daily supervision around the basic rights of right to know, participation, income, and claims. The life cycle of delisting has initially achieved the “protection” of the entire chain of investor protection. Despite this, cases of investor rights violations are still common. The market expects to set up the “5·15 National Investor Protection Publicity Day” as an opportunity to unite all parties in the market and create a new pattern of insurance coverage from the aspects of improving system construction, improving the quality of listed companies and strengthening investor self-protection.
First of all, protecting the interests of investors is inseparable from a sound legal system and institutional guarantees. At present, the effectiveness and pertinence of China's capital market insurance work needs to be further improved. The “three public” market environment and information symmetry pattern that prevent investors' interests from being damaged need to be improved, and the appeals and relief of investors' interests are impaired. The claim mechanism also needs to be smoother. In this regard, relevant laws and regulations need to be improved. Fortunately, in order to allow investors to obtain compensation and timely compensation, including the multi-disciplinary resolution mechanism, the shareholding exercise mechanism, the support of the litigation mechanism, the advance payment mechanism, and the promotion of the court demonstration and judgment mechanism, the five investors exercised rights and rights. The mechanism is constantly improving.
Second, protecting the interests of investors requires high-quality listed companies. In mature markets, investors' return on investment is mainly due to the market value growth of listed companies after dividends and business growth. However, in the current A-share market, the investment culture of listed companies through performance growth and dividend returns remains to be further cultivated. What is more serious is that the practice of falsifying words, making false accounts, manipulating performance, manipulating mergers and acquisitions and infringing on the interests of investors has occurred frequently. Fortunately, raising the cost of illegal and illegal capital markets has been put on the agenda, which will force the listed companies to regulate development. The regulatory authorities will also guide listed companies to improve quality from both incremental and stock levels.
In addition, protecting the interests of investors requires an increase in the professional level of investors. Due to irrational behaviors such as “flock effect” and “excessive self-confidence”, investors frequently enter “pits”. On the one hand, on the one hand, the regulatory authorities, intermediaries, and news media should increase investor protection and publicity, and create a large pattern of investor protection, such as legal protection, regulatory protection, self-discipline protection, market protection, and self-protection. On the other hand, investors should consciously strengthen risk awareness and rational thinking, strengthen the study of knowledge related to capital markets, choose products that are suitable for their own products, and do not blindly follow suit.
The more the merrier. The investment environment is more friendly, the quality of investment targets is higher, and the professionalism of investors is stronger. The prospects for investor protection and capital market development will be brighter.
(Article source: China Securities Journal)