On May 15, the Securities and Futures Commission issuedFreecandycrushgamesIn 2023.FreecandycrushgamesLaw enforcement "report card" and identified the focus of law enforcement in 2024.
The CSRC said that this year, it will severely crack down on illegal acts in the securities and futures market that seriously endanger the smooth operation of the market, infringe upon the legitimate rights and interests of investors, have a bad social impact, and have a strong reaction from the masses, and will strengthen clues to find, strictly investigate major cases, enhance the efficiency of law enforcement, continuously deepen cooperation, and pay attention to both punishment and prevention, so as to speed up the construction of a safe, standardized, transparent, open, dynamic and resilient capital market.
Transfer 42 listed companies suspected of committing crimes to public security organs
Statistics show that in 2023, the CSRC investigated and dealt with 717 illegal cases of securities and futures, an increase of 19% over the same period last year; administrative penalties were imposed, an increase of 40% over the same period last year; 1073 people (families) were responsible for punishment, an increase of 43% over the same period last year; 103 people were banned from the market, an increase of 47% over the same period last year; confiscation of 63%Freecandycrushgames.89 billion yuan, an increase of 140% over the same period last year, and 118 cases and clues suspected of securities and futures crimes were transferred to public security organs.
In terms of striving to eradicate the "malignant tumor" of financial fraud and improve the quality of listed companies, the CSRC insists on checking to the end for issuers and intermediary agencies suspected of major violations of laws and regulations, even if they withdraw their applications for offering and listing. Put an end to "reporting with illness" and "getting sick from the mouth", and improve the quality of listed companies from the source. In 2023, the CSRC investigated and dealt with four cases in which issuers submitted false financial data during the issuance declaration stage. Among them, Science and Technology Innovation Board IPO enterprise Silxin, in order to meet the issuance conditions, falsely increased profits by 118% in 2020, the first fraudulent issue case found and dealt with by the CSRC at the declaration stage under the registration system, and the company and relevant responsible persons were fined 16.5 million yuan.
At the same time, focus on the abuse of accounting policies, large amounts of asset impairment to adjust profits and other illegal acts, seriously investigate and deal with 32 companies with bad circumstances, and severely crack down on illegal acts of financial fraud in the name of impairment. Dig deep into the interest chain of financial fraud, in view of the cross-correlation of the subjects involved in many financial fraud cases, the high similarity between suppliers and customers, and the cooperation of upstream and downstream fraud, series and parallel analysis, comprehensive arrangement, centralized investigation and handling, effectively purify the ecosystem of listed companies. On the basis of increasing the intensity of administrative punishment, we should comprehensively use a variety of means, such as compulsory delisting, criminal liability and civil compensation, to comprehensively increase the cost of breaking the law.
In 2023, 32 listed companies investigated and dealt with by the CSRC were forcibly delisted and 42 listed companies suspected of crimes were transferred to the public security organs. In the Zeda Yisheng and Amethyst storage fraud issuance case, the company and the person responsible were fined 142.5 million yuan and 90.71 million yuan respectively by the Securities Regulatory Commission, and the public security organs took criminal compulsory measures against more than a dozen responsible personnel. both companies were forced to withdraw from the market because of major violations, and investors received more than 1.3 billion yuan in civil compensation, forming a strong law enforcement deterrent to listed companies that dared to try the law.
For the "key minority", the CSRC minimizes the adverse impact on the operation of the company as far as possible. If Ye, the actual controller of the company in the Qixin share (002781) case, instructs the company to engage in fraudulent issuance and information disclosure violations, the CSRC imposed a fine of 14 million yuan on Ye and took measures to ban access to the securities market for life. For illegal occupation guarantee cases, distinguish the main responsibilities of listed companies, actual controllers and Dong Jiangao, and deal with them separately so as to avoid causing "secondary harm" to the company.
Keep a close eye on the "janitor" and strictly investigate the illegal reduction of holdings
In terms of compacting the responsibility of the "gatekeeper", the CSRC insists on "investigating more than one case." On the basis of investigating and dealing with cases of information disclosure violations such as fraudulent issuance and financial fraud in accordance with the law, we should comprehensively verify the due diligence of the intermediary agencies involved in the case, and seriously deal with those suspected of breaking the law and crimes, and will never tolerate them. For example, the illegal and dereliction of duty of intermediary agencies involved in the whole chain crackdown on the special network communication series case, Zixin Pharmaceutical (002118) financial fraud case, and other intermediary agencies related to Gome Communications (600898) fraudulent issuance case, audit, law and other intermediary agencies are also held responsible.
At the same time, adhere to the "double penalty system". Severely punish intermediary agencies that fail to fulfill their duties, and impose "double penalties" on institutions and personnel in accordance with the law. In 2023, administrative penalties were imposed on 25 intermediary institutions and 94 employees. In addition to the application of "property penalty" in accordance with the law, we should make full use of legal empowerment to explore the application of "qualification penalty". For example, for Zhongtian Huamao Accounting firm's failure to exercise due diligence in the audit practice of Dongfang net Power (300367) Annual report, the business income shall be confiscated and fined 5 times, and its securities service business will be suspended for 6 months; Sun, head of the Guohai Securities (000750) project, which has not been diligent and responsible for the issuance of corporate bonds for Shengtong Group, has adopted a five-year ban on the securities market.
For illegal holdings reduction, market manipulation, insider trading and other acts, the CSRC strictly investigated illegal holdings reduction. Focus on major shareholders, especially controlling shareholders, and actual controllers, and resolutely investigate and deal with nine cases of illegal reduction. Among them, the actual controller of China Nuclear Titanium dioxide (002145) conspired with CITIC Securities, CITIC Securities (600030) and Haitong Securities (600837) to use margin financing and derivatives tools to make a detour to reduce their holdings, strengthen penetrating supervision, and in accordance with the principle of substance over form, it is determined in accordance with the law that relevant units and individuals jointly constitute a restricted period transaction, with a total of forfeiture 2.Freecandycrushgames.35 billion yuan.
And crack down on internal and external collusion to manipulate stock prices. In accordance with the law, some listed companies' actual controllers and Dong Jiangao will be severely punished to manipulate the market in the name of market value management by making use of the advantages of funds, shareholding and information. In 2023, nine cases of actual controllers and executives of listed companies colluding with hot money to manipulate the company's stock price were investigated and dealt with. The relevant responsible units and personnel in Jintuo shares (300400), Senyuan Electric (002358), New Meixing (300509) and other cases were fined and forfeited 660 million yuan, 610 million yuan and 95.67 million yuan respectively. To deal with recidivism of market manipulation seriously. Individual lawbreakers who have been punished for manipulating the market for many times and who have not stopped being punished shall be dealt with severely and severely in accordance with the law. For example, Wang Mou copper gang manipulated seven stocks and was fined 1.5 billion yuan by the CSRC and transferred to the public security organ for criminal responsibility; Ren Mou Cheng gang manipulated stocks for a long time, and the amount of money involved in the case was large, and he committed the crime again after being punished three times by the CSRC. The CSRC imposed a fine of 297 million yuan and took measures to ban access to the securities market for life.
For new types of illegal cases. According to the CSRC, the use of data analysis means to crack down on new types of illegal activities in the capital market that are constantly changing and escalating in accordance with the law, and resolutely curb the momentum of spread. For example, in accordance with the law, some gangs use over-the-counter individual stock options and other financial derivatives to magnify the manipulation of earnings, and some personnel manipulate LOF funds, convertible bonds and other illegal acts. Actively cooperate with public security organs to investigate and deal with illegal market manipulation activities in which illegal gangs use remote manipulation software to hide traces of transactions, quickly sell warehouses, smash and ship goods, and seek huge illegal interests.
Handle 61 cases of employees violating laws and regulations
The CSRC said that keep a close eye on bonds, private equity, futures and other areas, resolutely highlight the sword to illegal acts, leaving no dark corner or dead corner of financial supervision and law enforcement.
In terms of cracking down on illegal activities in the bond market, the CSRC has seriously investigated and dealt with the illegal disclosure of information and misappropriation of funds hidden behind the default of bonds. Eight cases of bond violations were handled in 2023, involving 4 cases each of the exchange and the interbank bond market. If Evergrande real estate recognizes real estate sales revenue in advance, falsely increases revenue and profits in 2019 and 2020, resulting in fraudulent issuance of 5 corporate bonds, it is proposed to impose a total fine of more than 4.2 billion yuan on the company and relevant responsible persons. The mortgage property disclosed by Yuangao Industries was seriously inconsistent with the mortgage registration and the actual situation, and failed to disclose the bankruptcy information applied to the court and the default of related bonds, resulting in a total fine of 16 million yuan to the company and relevant responsible persons.
In strengthening the law enforcement against private placement and futures violations. In 2023, the CSRC handled 29 private placement and futures cases, including misappropriation of fund property, violation of investor appropriateness system, illegal promised income, illegal investment operation, failure to disclose information in accordance with regulations, and so on. Pay close attention to relevant risk-related cases, such as eight private equity firms through equity holding and other covert ways to control a number of private equity firms to invest in each other, fabricating underlying targets and valuations, involving thousands of investors, accumulating tens of billions of yuan in private equity fund property. If a futures company fails to perform its management duties to its subsidiaries, fails to submit true, accurate and complete information, and is suspected of engaging in illegal financial activities, the CSRC promptly files and deals with the above-mentioned cases.
In terms of severely cracking down on illegal activities of employees. The CSRC will strengthen the management of employees, crack down on violations of laws and regulations, and be strictly accountable to institutions that lack effective control. Handle 61 cases of employees violating laws and regulations, covering illegal types such as illegal trading of stocks, private entrustment by clients, and fund practitioners using undisclosed information to trade. For example, focus on investigating and dealing with illegal and illegal acts such as buying and selling stocks by some employees of China Merchants Securities (600999), impose administrative penalties on 63 people, confiscate a total of 81.73 million yuan, and ban one person from entering the securities market for life.
Five aspects to promote law enforcement and strictly investigate major cases
The CSRC said that in 2024, the CSRC will severely crack down on illegal acts in the securities and futures market that seriously endanger the smooth operation of the market, infringe upon the legitimate rights and interests of investors, have a bad social impact, and are strongly reflected by the masses. to speed up the construction of a safe, standardized, transparent, open, dynamic and resilient capital market.
One is to strengthen the clue discovery. We will increase the application of science and technology supervision, constantly improve the sensitivity and accuracy of clue discovery, strengthen cross-departmental, cross-disciplinary and cross-market supervision cooperation, strengthen the linkage between on-site supervision and off-site supervision, information disclosure and transaction supervision, and on-site inspection and inspection investigation, and resolutely eliminate regulatory gaps and blind areas.
The second is to strictly investigate major cases. We will focus on cracking down on illegal acts such as fraudulent issuance, financial fraud, occupation guarantee, illegal reduction, and so on, and closely guard against and severely crack down on illegal acts that affect the normal order of the market, such as market manipulation and insider trading, so as to provide an open, fair and fair market order for investors to enter the market.
The third is to improve the efficiency of law enforcement. Strengthen the full-cycle management of the whole process of case handling, strengthen process supervision, dynamic management, and control of key links, and effectively improve the quality of investigation and handling. We will optimize the allocation of law enforcement forces and quickly investigate and deal with major cases through such models as "joint investigation", "replacing training with cases" and "assisting team leaders".
Fourth, continue to deepen cooperation. We should give full play to the advantages of the mechanism of public security and procuratorial work in office and convenient communication, and jointly deploy and supervise the handling of cases by public security and procuratorial organs. Strengthen the linkage with relevant ministries and local governments in information communication, data sharing, and case handling, so as to form a work pattern of performing their respective duties, organic convergence, and joint governance.
Fifth, pay attention to both punishment and prevention. Give full play to the functions of inspection and law enforcement, "punishment", "governance", "prevention" and "education", let those who challenge the legal bottom line pay the due price, and promote reform and management with punishment, so as to realize the conservation and restoration of the market ecology. Enhance the transparency of law enforcement, timely inform the handling of financial fraud, market manipulation and other cases and typical cases, so as to achieve the effect of "handling a case, educating one, and warning one party".
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