Securities Regulatory Commission: Deepen the reform of the Science and Technology Innovation Board, GEM, and Beijing Stock Exchange and improve institutional mechanisms such as issuance and listing, cultivate and expand patient capital
The Zhitong Finance App learned that on September 22, the China Securities Regulatory Commission of the Communist Party of China issued a notice on the third round of inspection and rectification of the 20th Central Committee, and implemented various arrangements to comprehensively deepen capital market reform. Deeply implement the arrangements of the Third Plenary Session of the 20th CPC Central Committee and accelerate the implementation of a new round of comprehensive and deepening capital market reforms. Focus on serving the development of new quality productivity, deepening the reform of the Science and Technology Innovation Board, GEM, and Beijing Stock Exchange, improving institutional mechanisms such as issuance and listing, and cultivating and expanding patient capital. Accelerate the development of the multi-level bond market and promote the improvement of the futures supervision system and business model with Chinese characteristics. Expand high-level institutional openness and enhance the attractiveness and competitiveness of China's capital market.
In the next step, the Party Committee of the China Securities Regulatory Commission will seriously and earnestly carry out continuous rectification with perseverance and persistence, and continue to consolidate and expand the results of the rectification and reform. The discipline inspection and monitoring team stationed at the Securities Regulatory Commission will continue to step up supervision of inspection and rectification work. Comprehensively enhance risk mitigation, disposal, supervision and enforcement capabilities. Adhere to the coordinated development of investment and financing, further push forward the reform of public funds, work with all parties to continuously promote the entry and share of various medium- and long-term capital into the market, and strengthen strategic strength reserves and market stabilization mechanisms. Highlight strict punishment and prevention according to law, speed up the completion of shortcomings in regulations and systems such as listed companies and industry institutions, expand inspection coverage and improve the effectiveness of inspections in an integrated manner, further improve the ability to detect illegal and illegal clues, improve the comprehensive punishment cooperation mechanism with relevant ministries, departments, local party committees and governments to cooperate with third parties for fraud, further improve the “entry-continuous supervision-exit” full-chain supervision system, and make better use of the repair and correction function of daily supervision and the effectiveness of inspection and enforcement. Introduce more hard and practical measures to protect the legitimate rights and interests of investors.
The full text is as follows:
Notice from the China Securities Regulatory Commission of the Communist Party of China on the third round of inspection and rectification of the 20th Central Committee
According to the unified deployment of the Central Committee, from April 15 to July 20, 2024, the Eighth Inspection Team of the Central Committee carried out routine inspections on the Party Committee of the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission). On October 19, 2024, the Central Inspection Team gave feedback on the inspection to the Party Committee of the China Securities Regulatory Commission. In accordance with the relevant requirements of the inspection work, the inspection and rectification progress will now be announced.
I. Status of the Party Committee's implementation of the main responsibility for inspection and rectification
The Party Committee of the China Securities Regulatory Commission insists on taking central inspection and rectification as a major political task, thoroughly studying and implementing the spirit of General Secretary Xi Jinping's important speech when listening to the report on the third round of inspections of the 20th Central Committee, resolutely shouldered the responsibility for rectification and reform, consciously carried out the rectification tasks from a high level of loyalty to the Party, and supported the “two establishment” and “two maintenance” with practical actions. Highlight political leadership and strengthen ideological armaments. Strengthen theoretical study throughout the rectification and reform, and immediately after the central inspection and feedback, a meeting was held to convey the study, study and deploy the rectification work. During the centralized rectification period, the Party Committee and the Party Committee's Theoretical Study Center Group were organized to study, carefully study and implement General Secretary Xi Jinping's important remarks on inspection work and financial work and the Party Central Committee's deployment requirements for inspection and rectification work, hold high-quality democratic life meetings on inspection and rectification topics, thoroughly investigate existing problems and underlying causes, and continuously enhance the political consciousness, ideology, and sense of action of the rectification and reform. Adhere to the above guidelines and implement detailed responsibilities. Establish a responsibility system and system process covering the entire cycle of rectification and reform, and improve mechanisms such as problem management, package contact and supervision. The Party Secretary effectively shouldered the responsibility of the “first responsible person”, acted as the leader of the leading group for inspection and rectification work, and directly researched and deployed the rectification work. Insist on opening doors to rectification and reform, and hold many symposiums to listen to opinions from science and technology companies, industry organizations, experts and scholars. Other members of the Party Committee team have consciously carried out “one post and two responsibilities” and strengthened consultancy and promotion. Strengthen overall coordination and promote system rectification and reform. The feedback from the central inspection was sorted out and examined one by one, and a rectification plan was formulated to a high standard. Make good connections with the special rectification and reform, strengthen the coordination of the whole process of rectification and reform by the Party Committee of the Shanghai and Shenzhen Exchange, and strive to form a situation of vertical integration and joint rectification. Establish a strict tone to ensure effective rectification and reform. Establish and improve institutional rules. In response to the issues pointed out by the investigation and supervision of higher authorities, the rectification measures are dynamically improved to ensure the effectiveness of the rectification. Focus on central work and promote the transformation of results. Insist on combining inspection and rectification with deepening reforms, with comprehensively and strictly governing the Party, with building a leadership team and cadre force, thoroughly implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, continue to promote the implementation and effectiveness of the new “Nine Rules of the State” and “1+N” policy documents, and promote various tasks of risk prevention, strong supervision, and high-quality development in an integrated manner. Breakthroughs have been made in areas such as supporting scientific and technological innovation and the development of new quality productivity, improving risk response mechanisms in key areas, and improving the effectiveness of supervision and enforcement. The market structure and ecology have changed positively, and the foundation for high-quality development has been further consolidated.
The discipline inspection and monitoring team stationed at the Securities Regulatory Commission resolutely shouldered the responsibility of inspecting and supervising rectification, and urged the Party Committee of the China Securities Regulatory Commission to discuss political requirements throughout, consolidate responsibilities at various levels, and carry out the rectification tasks with stricter standards and more practical measures. Set up an inspection, rectification and supervision working group to seek practical and detailed rectification and supervision work plans, clarify supervision priorities, draw up a progress map for rectification and supervision work, keep an eye on key personnel and key issues directly to the front line to carry out full-coverage on-site inspections, and promptly put forward supervisory opinions. Establish a closed-loop management mechanism for supervisory opinions, strengthen follow-up and effectiveness, and promote normal long-term rectification and reform by the Party Committee of the China Securities Regulatory Commission.
II. Inspection feedback on the implementation of rectification and reform of key issues
(1) Comprehensively strengthen political construction and thoroughly implement the political and popular aspects of capital market work
1. Pay close attention to the construction of political organs and resolutely implement the decisions and arrangements of the Party Central Committee. Implement General Secretary Xi Jinping's important instructions and instructions as the top political task, improve the closed-loop management mechanism, and effectively improve the quality and efficiency of implementation. Strictly implement the request and report system for important matters, revise the list of matters requesting instructions and reports, and carry out special inspections. Organize discussions on “The Political and Popular Nature of the Capital Market”. The discipline inspection and monitoring team stationed at the Securities Regulatory Commission has improved the working mechanism for political supervision, focusing on major decisions and arrangements such as continuing to stabilize and revitalize the capital market, and following up supervision item by item to ensure that General Secretary Xi Jinping's important instructions and instructions are implemented in detail without compromise.
2. Focus on improving political capacity and effectively enhancing the pertinence and effectiveness of policies and measures. Resolutely implement the important arrangements of the Political Bureau meeting of the Central Committee on September 26, 2024 and the Central Economic Work Conference on efforts to boost the capital market and stabilize the stock market; work with the People's Bank of China to launch structural monetary policy tools to increase medium- and long-term capital entry into the market and vigorously develop equity public funds; issue market value management guidelines for listed companies to encourage dividends, repurchases and cancellations more than one year. Since 2024, dividends and repurchases have all reached record highs. In particular, in the face of the severe and complex international situation, work plans are steadily formulated and improved, strong policy signals are released, and risk monitoring is strengthened in a targeted manner.
3. Adhere to the people-centered value orientation and effectively protect the legitimate rights and interests of investors. Firmly grasp the market situation, where small and medium-sized investors account for the vast majority, and use investors as the foundation throughout the entire process of system construction, reform, development, and supervision and enforcement. Establish a review mechanism for the protection of small and medium-sized investors to formulate and revise major policies and regulations. Improve cooperation and investor protection mechanisms for major illegal and compulsory delisting of listed companies, increase the daily supervision of companies with new delisting risks, and better combine strong supervision with effective investor protection while resolutely maintaining the seriousness of delisting rules. Formulate work plans to promote the implementation of the advance payment system, and promote relevant business entities to pay damaged investors. Unblocked channels for investor complaints, and the 12386 service platform access rate increased significantly. Strengthen investors' rights protection remedies.
(2) Initiate and implement a new round of capital market reform and opening up to better serve the aspects of high-quality development
1. Strengthen top-level design to further enhance the systemic, forward-looking and continuous nature of reforms. Deeply implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, deeply grasp the important relationships between the government and the market, development and security, order and vitality, etc., take deepening comprehensive investment and financing reforms as a guide, make systematic arrangements for capital market reform, and put forward a series of reform initiatives in optimizing and improving the issuance and listing system and establishing long-term mechanisms to enhance the internal stability of the capital market.
2. Adhere to goal orientation and problem orientation, and promote the deepening and implementation of the stock issuance registration system. Strictly control the entry for issuance and listing. Compile the responsibilities of intermediaries, cooperate in formulating regulations regulating the provision of services by intermediaries for the company's public offering of shares, revise the practice quality evaluation methods for sponsoring agencies, and carry out normalized rolling on-site inspections on intermediaries engaged in IPO business. Optimize the pricing mechanism for issuing new shares, and revise the securities issuance and underwriting management measures and supporting rules.
3. Focus on serving the development of new quality productivity and strengthen the functioning of the capital market. Implement the “16 Rules for Science and Technology” and “8 Rules for Science and Technology Innovation Board”, and support the issuance and listing of high-quality technology-based enterprises. Take more measures to revitalize the M&A and restructuring market, release the “Six Rules of M&A”, and promote the implementation of typical cases. Promote the introduction of high-quality opinions on the development of the futures market, and smoothly launch futures varieties such as polysilicon. Steady development of the bond market. Improve cross-departmental supervision and coordination mechanisms for overseas listing filings.
(3) Effectively carry out the main business of responsibility and fully implement the “prickly” and angular requirements of supervision
1. Strengthen supervision throughout the chain and process. Promote the introduction of opinions on comprehensive punishment and prevention of financial fraud in the capital market, push relevant departments and provincial, municipal and local governments to formulate specific implementation plans, and initially establish a comprehensive punishment and prevention system linked between ministries and the central government. Strengthen on-site inspections of listed companies. Strengthen accountability of intermediaries, etc. Strictly punish all kinds of illegal holdings reduction or detour holdings, and order repurchases and payment of price differences for illegal holdings reduction. Strengthen supervision and inspection of securities and futures fund management institutions and private equity institutions.
2. Continuously improve the effectiveness of supervision and enforcement. Optimize and improve the working mechanism for inspection and enforcement, and effectively reduce the case handling cycle. Continue to promote the clean-up of backlogs and the speedy handling of additional cases. Formulate basic rules for discretionary administrative penalties to provide a uniform yardstick for enforcement discretion. Intensify efforts to collect forfeiture fines and raise the cost of illegal violations in the capital market. Strengthen scientific and technological empowerment, comprehensively promote the construction of smart supervision platforms, strengthen the application of scientific and technological tools, and improve the ability to discover and penetrate clues.
3. Vigorously promote the improvement of the regulatory and enforcement cooperation system with Chinese characteristics. Revise the regulations on supervisory responsibilities of dispatched agencies, and improve regulatory cooperation procedures for listed companies, institutions, futures, etc. Strengthen inter-ministerial coordination and cooperate in issuing opinions on a number of issues relating to the handling of securities and futures criminal cases. Deepen collaboration between the central government and the local authorities, and join local coordination mechanisms as member units to comprehensively strengthen information sharing, supervision collaboration, and risk management collaboration.
(4) Coordinate development and safety, and firmly adhere to the bottom line of risk
1. Focus on improving market risk monitoring and prevention capabilities. Improve the market risk monitoring and early warning index system, and raise the level of digital intelligence. Establish and improve the supervisory mechanism for OTC derivatives. Strengthen the supervision of high-frequency quantitative transactions, and organize stock exchanges to issue implementation rules for the management of programmatic transactions.
2. Prevent and mitigate risks in key areas in a steady and orderly manner. Coordinate local financing platforms, housing enterprise bond risk mitigation, and reasonable financing support. Strengthen the clean-up and rectification of relevant local trading venues. Firmly push forward the upgrading of critical information infrastructure, improve the normalized stress testing mechanism for securities and futures trading and settlement systems, and organize and carry out special inspections and emergency drills for networks and information security throughout the industry.
3. Strengthen the management of capital market expectations. Improve the effectiveness of news publicity, strengthen publicity and interpretation of a package of incremental policies, etc., organize and carry out a series of special publicity activities, and respond positively to social concerns. Compacting the reputation management responsibilities of industry organizations and listed companies.
(5) Adhere to self-revolution and advance the comprehensive and strict government of the Party in depth
1. Strictly and comprehensively govern the Party's political responsibilities at various levels. Dynamically improve the list of main responsibilities of the Party Committee team and refine the content of responsibilities. Improve mechanisms such as regular communication meetings and important information notifications with the discipline inspection and monitoring team stationed at the Securities Regulatory Commission, and promote the resolution of key difficult issues through special meetings. Strengthen the inspection and audit work of the Party Committee, and make the implementation of central inspection and rectification the focus of supervision.
2. Promote the “three imperishables” in an integrated manner. To strengthen the deterrent against corruption, the discipline inspection and monitoring team stationed at the Securities Regulatory Commission handled the central inspection handover letters, petitions and problem leads with high quality and efficiency, carried out key inspections on issues reflecting “top management” and key positions, and continued to deepen the special management of corruption issues in the field of securities issuance review, and promote the same investigation and treatment of corruption in an integrated manner. In response to the problems revealed in the investigation and handling of cases, special corrections have been carried out, efforts are being made to improve and perfect the system, tighten the impenetrable fence, keep an eye on key groups and key areas, strengthen internal control of integrity risks, line supervision, and horizontal supervision, so as to promote reform through cases, promote construction through cases, and promote treatment through cases. Strengthen education guidance, centralize the rectification period, and jointly hold a system-wide warning education meeting with the discipline inspection and monitoring team stationed at the Securities Regulatory Commission to report typical cases and enhance awareness of not wanting corruption. Deeply control the “revolving door” of government and business, and seriously investigate and handle typical cases.
(6) Implement the standards of “excellent politics, excellent ability, and excellent style of work” and comprehensively strengthen the aspect of cadre building
1. Establish the correct orientation for selecting and employing people. Adhere to the Party's principles of managing cadres, implement the standards for good cadres in the new era, improve comprehensive analysis, research and judgment mechanisms for leadership team building, and strengthen follow-up, inspection, and interview reminders. Play the role of a good assessment baton, and optimize the assessment of dispatched agency leadership teams and leading cadres. Revise relevant accountability measures to urge cadres to perform their duties with due diligence. Adhere to the combination of strict control and love, and do a solid and meticulous ideological work for cadres and employees. The discipline inspection and monitoring team stationed at the Securities Regulatory Commission clarified the names of false reports reflecting supervisory cadres, and encouraged everyone to dare to act and effectively carry out their supervisory duties.
2. Improve the ability of cadres to perform their duties. Strengthen the Party Committee's leadership over talent work, and further strengthen the work of introducing middle- and high-level professionals. Strengthen the training of cadres in carrying out their duties. The China Capital Market Association was established to create a high-end think tank platform for capital market theory research, academic exchange, and decision consulting. The discipline inspection and monitoring team stationed at the Securities Regulatory Commission has strengthened its guidance to the Commission for Discipline Inspection, a unit of the China Securities Regulatory Commission system, and continues to forge a cadre of discipline inspection and supervision cadres with a focus on improving discipline enforcement and case handling capabilities.
(7) Pay close attention to the rectification aspects of the previous round of inspection and inadequate rectification
1. Focus on the end and strengthen the fight against key difficult issues. Play the role of the leading group for rectification work to check the completion of the rectification tasks one by one. An implementation plan to promote the entry of medium- to long-term capital into the market was jointly issued with relevant departments to promote the establishment of a long-term assessment mechanism for various medium- and long-term funds.
2. Further promote systematic rectification and source management of deep-seated problems. Promote the improvement of the quality of listed companies more vigorously, and improve full-chain supervision of strict entry points, strengthen continuous supervision, and dynamic and orderly exit. Revise the information disclosure management measures and supporting rules for listed companies, revise the articles of association guidelines for listed companies, improve internal supervision, check and balance mechanisms, and strengthen behavioral restrictions on controlling shareholders and actual controllers. Deepen the normalization of visits to listed companies. Cooperate with revising the minutes of the working symposium to review bankruptcy and restructuring cases of listed companies to support companies with salvage value in mitigating risks through bankruptcy and restructuring. Promote a new round of delisting reforms, and many companies will be delisted smoothly in 2024. Improve the basic regulatory system for supervision.
III. Progress of matters requiring long-term rectification
(1) Strengthen the aspect of political construction. Strengthen the Party Committee team's own construction, improve systems such as the Party Committee's “First Topic” and the Party Committee's Theoretical Study Center Group Study Group Study Group, thoroughly study and implement Xi Jinping's ideology of socialism with Chinese characteristics in the new era, and continuously improve the ability to view capital market work from a political perspective. The Party Committee team focuses on fundamental and long-term issues in the capital market, determines key topics to conduct research every year, and promotes the transformation of results. Strictly implement the Party Committee's rules of procedure and procedures, fully discuss important matters, and continuously raise the standard and scientific level of the Party Committee's deliberations and decisions.
(2) Aspects of risk prevention and mitigation. Facing the challenge of increasing external imported risks, we will place strengthening the construction of market stabilization mechanisms in a more prominent position, strengthen comprehensive risk investigation and judgment, and improve rapid response mechanisms.
(3) Strengthen the supervisory aspect. Implement the requirement that “managing the law is even more important than managing the illegal”, further improve communication and links with local governments, work together to improve working mechanisms, and actively hand over suspected illegal securities and futures cases. Continue to improve investor protection mechanisms and promote the issuance of judicial documents on civil compensation for insider trading and market manipulation.
(4) Aspects of promoting high-quality development. Publish implementation opinions on the “Five Major Articles” on how to improve finance in the capital market, and put forward work measures focusing on serving scientific and technological innovation. Implement the spirit of the private enterprise symposium, guide exchanges to increase the supply of financial products and services for science and innovation private enterprises, and promote securities companies to actively create private enterprise bond financing support tools and support plans. Accelerate the high-quality development of the capital market itself and carry out research on building a world-class securities and futures exchange.
(5) Strengthen aspects of the China Securities Regulatory Commission's own construction system. Adhere to the integrated promotion of “academic investigation and reform”, and earnestly carry out spiritual study and education to thoroughly implement the Eight Regulations of the Central Committee. Promote the party building work of organs and systems in an integrated manner, solidly carry out debriefing, review and assessment of party organization secretaries focusing on grass-roots party building work, further standardize the implementation of the “three sessions and one lesson” system, comprehensively promote the creation of the “top four” party branches of the system, and drive comprehensive improvements through key improvements.
After intensive efforts, the Party Committee of the China Securities Regulatory Commission's inspection and rectification achieved phased results. The Party Committee of the China Securities Regulatory Commission is keenly aware that there is still a gap between the various tasks in the capital market and the requirements of the Party Central Committee and the need for high-quality development. The effectiveness of rectification of some problems needs to be further improved, and continuous efforts and efforts are needed over a long period of time.
IV. Plans for the next work
The Party Committee of the China Securities Regulatory Commission will seriously and seriously carry out continuous rectification with perseverance and persistence, and continue to consolidate and expand the results of the rectification and reform. The discipline inspection and monitoring team stationed at the Securities Regulatory Commission will continue to step up supervision of inspection and rectification work.
(1) Consciously uphold and strengthen the Party's overall leadership of the capital market. Thoroughly study and implement Xi Jinping's ideology of socialism with Chinese characteristics in the new era, uncompromising implementation of General Secretary Xi Jinping's spirit of a series of important instructions and instructions on the capital market and the decisions and arrangements of the Party Central Committee, and strictly implement the system of requesting instructions and reports on important matters. Strengthen the leadership and supervision of party committees in system units, make better use of the political and organizational functions of party organizations at all levels, effectively implement party leadership into all aspects of the capital market policy formulation, supervision and enforcement, and internal governance process, and resolutely implement the first line of “two maintenance.”
(2) Implement detailed and comprehensive arrangements for deepening capital market reforms. Deeply implement the arrangements of the Third Plenary Session of the 20th CPC Central Committee and accelerate the implementation of a new round of comprehensive and deepening capital market reforms. Focus on serving the development of new quality productivity, deepening the reform of the Science and Technology Innovation Board, GEM, and Beijing Stock Exchange, improving institutional mechanisms such as issuance and listing, and cultivating and expanding patient capital. Accelerate the development of the multi-level bond market and promote the improvement of the futures supervision system and business model with Chinese characteristics. Expand high-level institutional openness and enhance the attractiveness and competitiveness of China's capital market.
(3) Comprehensively enhance risk mitigation, disposal, supervision and enforcement capabilities. Adhere to the coordinated development of investment and financing, further push forward the reform of public funds, work with all parties to continuously promote the entry and share of various medium- and long-term capital into the market, and strengthen strategic strength reserves and market stabilization mechanisms. Highlight strict punishment and prevention according to law, speed up the completion of shortcomings in regulations and systems such as listed companies and industry institutions, expand inspection coverage and improve the effectiveness of inspections in an integrated manner, further improve the ability to detect illegal and illegal clues, improve the comprehensive punishment cooperation mechanism with relevant ministries, departments, local party committees and governments to cooperate with third parties for fraud, further improve the “entry-continuous supervision-exit” full-chain supervision system, and make better use of the repair and correction function of daily supervision and the effectiveness of inspection and enforcement. Introduce more hard and practical measures to protect the legitimate rights and interests of investors.
(4) Unswervingly promote comprehensive development from strict Party governance to in-depth development. Deeply implement the spirit of the 4th Plenary Session of the 20th Central Commission for Discipline Inspection, promote the “three uncorrupt” in an integrated manner, dynamically improve the public power supervision and control mechanism, consolidate and deepen the achievements of Party discipline study and education, and resolutely eradicate the soil and conditions that breed corruption. Firmly carry out spiritual studies and education to thoroughly implement the Eight Regulations of the Central Committee, and strictly correct the “Four Winds” to the end. Highlight and strengthen the construction of leadership teams at all levels, more clearly establish an employment guide that encourages practical work and responsibility, give better play to the role of restraining and protecting and motivating Party discipline education, increase targeted education and management for key groups such as young cadres, strictly control love, and accelerate the construction of a “strong political, competent, and excellent style of work.”
(5) Focus on promoting the normal long-term effectiveness of inspection and rectification. Adhere to constant goals, undiminished responsibilities, and unlowered standards, insist on combining current reform with long-term establishment, formulate a plan for normalization and long-term inspection and rectification, improve mechanisms for coordination and promotion, supervision and implementation, supervision and accountability, and further strengthen the guidance and strict control of the inspection and rectification work of system units such as the Shanghai and Shenzhen-North Exchange. For rectification tasks that have been completed and have achieved phased progress, retrospective reviews are carried out on a regular basis, and the effects of the rectification are assessed realistically to resolutely prevent backlash and repetition; for issues requiring long-term rectification, the target tasks are clarified in stages, kept a close eye on them, and carried out to the end, and push the inspection and rectification to continue to go deeper and more realistic.
This article was selected from the “Securities Regulatory Commission's official website”; Zhitong Finance Editor: Huang Xiaodong.