The Securities Regulatory Commission joined forces with more than 10 departments including the Supreme Court and Supreme Prosecution to crack down on financial fraud

Zhitongcaijing · 5d ago

The Zhitong Finance App learned that on January 5, the China Securities Regulatory Commission held a symposium to promote the cross-departmental work of the comprehensive punishment and prevention system for financial fraud in the capital market. Since 2024, the Securities Regulatory Commission has investigated and handled a total of 159 cases of financial fraud, imposed 111 administrative penalties, and forfeited 8.1 billion yuan. Together with the relevant departments, they insisted on putting equal emphasis on punishing the culprits and accomplices, seriously prosecuting the majority shareholders and actual controllers in 43 cases, and resolutely punishing third parties cooperating with the fraud by complicity in administrative offenses. Continue to strengthen three-dimensional accountability, hand over 112 criminal leads suspected of financial fraud to the public security authorities, and support investors damaged in cases such as Jin Tongling, Meishang Ecology, and Jinzhou Port to file special representative lawsuits. Strengthen the accountability of intermediaries. Eighteen serious counterfeiting companies actually involved major offenses and forced delisting. Cases have been opened and investigated against 91 companies that have already been delisted to resolutely prevent “retreating once and for all.” Thanks to the joint efforts of all parties, a comprehensive punishment and prevention system for financial fraud by listed companies has gradually been implemented, joint supervisory efforts have been continuously strengthened, and the market ecology has improved markedly.

At the meeting, various departments conducted in-depth discussions on the implementation of the “Comprehensive Punishment and Prevention Opinions” and next key tasks. The conference believes that the construction of a comprehensive punishment and prevention system for financial fraud in the capital market has entered a critical stage of deepening implementation, and that it is necessary to adhere to problem orientation and systematic thinking to play a “combo punch” for comprehensive punishment and prevention. Continue to improve system guarantees and promote the introduction of relevant laws and regulations. Further strengthen administrative, criminal, and civil coordination, deepen execution links in major cases, improve civil prosecution support mechanisms, and comprehensively crack down on financial fraud and third party cooperation fraud. Strengthen endogenous constraints on corporate governance, organize and carry out a new round of special corporate governance actions, and strengthen the construction of comprehensive prevention, normalization and long-term mechanisms.

The full text is as follows:

The China Securities Regulatory Commission held a symposium to promote cross-departmental work on the comprehensive punishment and prevention system for financial fraud in the capital market

On January 5, the China Securities Regulatory Commission held a symposium on promoting the cross-departmental work of the comprehensive punishment and prevention system for financial fraud in the capital market. Wu Qing, Party Secretary and Chairman of the Securities Regulatory Commission, presided over the meeting and made a speech. Comrades in charge of the Supreme People's Court, the Supreme People's Procuratorate, the National Development and Reform Commission, the Ministry of Public Security, the Ministry of Justice, the Ministry of Finance, the People's Bank of China, the State Council's State-owned Assets Administration Commission, the State Administration of Taxation, the General Administration of Market Supervision, and the General Administration of Financial Supervision attended the meeting and delivered speeches to jointly study and promote key tasks to further strengthen the comprehensive punishment and prevention of financial fraud. Li Chao, member of the Party Committee and Vice Chairman of the Securities Regulatory Commission, attended the meeting. Comrades in charge of relevant departments and bureaus of the Securities Regulatory Commission attended the meeting.

The conference reported on the progress of comprehensive punishment and prevention work. Since the General Office of the State Council forwarded “Opinions on Further Accomplishing the Comprehensive Punishment and Prevention of Financial Fraud in the Capital Market” (hereinafter referred to as “Comprehensive Punishment and Prevention Opinions”) of the China Securities Regulatory Commission and other departments, various departments have thoroughly studied and earnestly implemented the spirit of General Secretary Xi Jinping's important instructions and instructions, strengthened the supply of the rule of law, increased efforts to investigate and punish third parties for cooperating with fraud and compacting the “gatekeeper” responsibilities of intermediaries. The comprehensive three-dimensional accountability system with effective links between administrative law enforcement, criminal punishment, civil recovery, and integrity restraint has continued to deepen and become normal Effective punishment and prevention mechanisms Further improved.

Since 2024, the Securities Regulatory Commission has investigated and handled a total of 159 cases of financial fraud, imposed 111 administrative penalties, and forfeited 8.1 billion yuan. Together with the relevant departments, they insisted on putting equal emphasis on punishing the culprits and accomplices, seriously prosecuting the majority shareholders and actual controllers in 43 cases, and resolutely punishing third parties cooperating with the fraud by complicity in administrative offenses. Continue to strengthen three-dimensional accountability, hand over 112 criminal leads suspected of financial fraud to the public security authorities, and support investors damaged in cases such as Jin Tongling, Meishang Ecology, and Jinzhou Port to file special representative lawsuits. Strengthen the accountability of intermediaries. Eighteen serious counterfeiting companies actually involved major offenses and forced delisting. Cases have been opened and investigated against 91 companies that have already been delisted to resolutely prevent “retreating once and for all.” Thanks to the joint efforts of all parties, a comprehensive punishment and prevention system for financial fraud by listed companies has gradually been implemented, joint supervisory efforts have been continuously strengthened, and the market ecology has improved markedly.

The conference pointed out that the Party Central Committee and the State Council attach great importance to the stable and healthy development of the capital market. They should fully understand the interest drivers and long-term complexity behind financial fraud, further strengthen their confidence, strengthen joint supervisory efforts, and continue to jointly shoulder the political responsibility of cracking down on and preventing financial fraud in the capital market. The Securities Regulatory Commission will continue to actively work with various departments to continue to enhance the effectiveness of comprehensive punishment and prevention with more practical measures, continuously promote the improvement of the quality and investment value of listed companies, effectively protect the legitimate rights and interests of investors, fully protect the high-quality development of the capital market, and contribute to Chinese-style modernization.

This article was selected from the “Securities Regulatory Commission Release” WeChat account; Zhitong Finance Editor: Huang Xiaodong.