As of September 15, the CSRC has imposed administrative penalties on 105 cases of capital infringement in the capital market this year. Among them, there were 29 cases of insider trading, 21 cases of information disclosure violations, 14 cases of market manipulation, 10 cases of illegal acts by intermediaries and 7 cases of illegal trading of securities by employees.
“In recent years, the Commission took special law enforcement action as the starting point to crack down illegal securities and futures violations. It not only continued to crack down on the traditional types of illegal and illegal behaviors such as false statements by listed companies, major insider trading and manipulation of markets, but also started from the overall situation of preventing financial risks and ensuring the stable development of the reform, with a focus on cracking down on market risk prevention, hot spots in the market and public opinion, and typical cases of major fraud that affect market reform and development.” Someone close to the SFC sources revealed that it also took the initiative in view of listed companies information disclosure cases, speculation of new shares and other vicious manipulation cases, and insider trading cases and other market hot spots.
Tian Lihui, head of Nankai University's Institute of Financial Development, said that the SFC upholds the combination of special operations and normal law enforcement to crack down on all kinds of illegal securities and futures activities legally, comprehensively, strictly, and diligently, and SFC's inspection enforcement this year deserves credit. Furthermore, through strengthening supervision, an effective mechanism of “not dare to disobey, not to disobey, not want to disobey” should be gradually formed.
Insiders pointed out, the current disclosure of information illegality, market manipulation and other cases appear to new features, involving more main bodies, wider area and a larger quantity of evidences.Regulators should fully tap the resources of existing inspection and law enforcement, establish a “collectivized” mode of handling cases, and concentrate superior forces to break through key cases. SFC spokesman Gao Li stressed that in the inspection and handling of cases, while optimizing the mode, the CSRC paid more attention to giving full play to the supportive role of science and technology.
“The future inspection and law enforcement should continue to adhere to the direction of high-tech, flat and cautionary reform.” Tian Lihui suggested that regulators should gradually increase the use of big data, the Internet of Things and intelligent means of inspecting and enforcing the law, while giving full play to the role of internet public opinion and the supervision of the society. The basic purpose of the law enforcement inspection is not to punish the wicked, but to prevent the emergence of wicked people. On some issues, the CSRC can conduct a full warning education on markets, industries or related groups before enforcing the law.
For the securities and futures industry regulation, a single administrative supervision is not enough. It must be all-round, universal participation, which not rely solely on the regulatory body, but also rely on investor rights protection, reporting, claims, that is to say, “the whole chain” to keep up. Now investors are basically absent in the supervision of market participants. Investors should learn how to use legal means to safeguard their rights and learn to protect their legitimate rights and interests.
In addition, the CSRC should pay more attention to standardizing law enforcement and ensuring the quality of law enforcement. Based on the principle of “giving prominence to priorities and pressing ahead and gradually improving”, the CSRC should establishe a law enforcement system with services in a clear, comprehensive and responsible manner, including improving the supervision mechanism and effectively preventing the risk of corruption during the conclusion of the case.
