Since August, 10 listed companies or actual controllers have been investigated by the China Securities Regulatory Commission
2024-08-13
The regulatory authorities have strengthened their supervision of information disclosure by listed companies. On the evening of August 9th, four listed companies, Tongde Chemical, Ren Zixing, Zhongqingbao, and Shenyang Chemical, announced that they were all investigated by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations. Zhao Jingguo, senior partner of Shanghai Xinben Law Firm, said that for investors, they should be wary of listed companies with weak main businesses and troubles, and avoid losses due to "stepping on landmines". Furthermore, according to data from Tonghuashun iFinD, 69 A-share listed companies issued 75 notices of filing notices received by companies or related parties from the China Securities Regulatory Commission during the year, which is the same as the same period last year. Since August alone, 10 listed companies or actual controllers have been investigated by the China Securities Regulatory Commission. The regulatory authorities continue to impose strict supervision and management on listed companies. From the perspective of violation types, the number of announcements involving illegal information disclosure, insider trading, and short-term trading ranks among the top three, with 60, 7, and 4 respectively. The investigated objects involve the listed company itself, controlling shareholders, executives, etc. 80% of the registered companies are suspected of disclosing illegal and irregular information, which is an important bridge for communication between listed companies and investors. 80% of companies investigated within the year are suspected of violating laws and regulations regarding information disclosure. Information disclosure is the foundation of the principles of fairness, impartiality, and openness in the capital market, which directly affects whether investors can obtain accurate, timely, and effective company operation information in order to make reasonable investment decisions Lu Dingliang, a partner at Beijing Jingshi Law Firm, said. Since the beginning of this year, regulatory authorities have maintained a high-pressure situation towards illegal and irregular information disclosure. From the types of information disclosure violations suspected by listed companies under investigation within the year, they mainly include delayed or irregular disclosure of major issues, failure to fulfill disclosure obligations, and overdue disclosure of regular reports. It is worth noting that at least 7 companies were investigated by the China Securities Regulatory Commission for failing to disclose their annual reports on time during the year. Information disclosure work needs to be integrated throughout the entire process of stock listing and issuance. Regulatory actions such as filing investigations will further deter illegal behavior of listed companies and improve their quality Zhang Yang, a partner at Zhongwen Law Firm, stated that in the future, regulators will continue to crack down on information disclosure violations with high pressure to improve market transparency and protect the interests of small and medium-sized investors. Focus on cracking down on the "key minority" violations of listed companies by the regulatory authorities. Data shows that 29 listed companies were investigated during the year, including the company and its actual controllers, controlling shareholders, directors, and executives. Some listed companies and actual controllers have been investigated for suspected violations of information disclosure laws and regulations. For example, on the evening of August 9th, Zhongqingbao announced that the company and its actual controller Zhang Yunxia were suspected of illegal and irregular information disclosure, and the China Securities Regulatory Commission decided to file a case against the company and its actual controller Zhang Yunxia. Some actual controllers of listed companies are also suspected of short-term trading. For example, a pharmaceutical listed company recently announced that its chairman and general manager received a notice from the China Securities Regulatory Commission on August 5, 2024, for suspected short-term trading of the company's stocks. In addition, the actual controllers or directors, supervisors and senior executives of listed companies are detained by local supervisory commissions, and the situation of suspected duty crimes is even more serious. For example, on the evening of July 23, Greenland Holdings announced that the company had learned from the websites of the Shanghai Municipal Commission for Discipline Inspection and the Shanghai Municipal Supervision Commission that its director Hu Xin was suspected of serious violations of discipline and law, and is currently undergoing disciplinary review and supervision investigation by the Shanghai Municipal Commission for Discipline Inspection and Supervision. Data shows that at least 8 companies' actual controllers or directors, supervisors, and senior executives were detained by local supervisory commissions during the year. Zhao Jingguo stated that some listed companies may be manipulated by their actual controllers due to poor internal management, intentionally concealing or misleading information, thereby violating relevant laws and regulations. By closely monitoring the illegal and irregular behavior of the 'key few', regulators can help punish the ringleaders, pursue accomplices, and protect the interests of investors. Since the release of the new "National Nine Articles", "strict, fast, and severe" has become the main tone of regulatory punishment. In terms of quantity, the regulatory authorities have intensified their investigation and punishment of violations by listed companies; In terms of intensity, relatively heavy punishment measures such as filing investigations are frequently implemented; In terms of speed, the regulatory authorities have shortened the time from filing a case to investigation, and then to punishment, resulting in higher efficiency. For example, on April 12th of this year, China National Nuclear Corporation (CNNC) was investigated and filed for investigation. Just seven days later, the China Securities Regulatory Commission (CSRC) issued a "Notice of Administrative Penalty", which proposed to confiscate a total of 235 million yuan from the actual controller of CNNC Titanium Dioxide. The capital market plays an important role in financial operations, as it can have a ripple effect. On July 29th, the China Securities Regulatory Commission held a mid year work conference to study and implement the spirit of the Third Plenary Session of the 20th Central Committee. It is pointed out that strengthening supervision through reform and effectively protecting the legitimate rights and interests of investors. On May 15th, the China Securities Regulatory Commission announced the key enforcement work for 2024. In 2024, the China Securities Regulatory Commission will strictly crack down on illegal activities 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 negative social impact, and have strong public feedback, in order to accelerate the construction of a safe, standardized, transparent, open, dynamic, and resilient capital market. Lu Dingliang stated that the regulatory authorities are strengthening their supervision of the capital market, reflecting their determination to maintain market order and protect investor rights. In the future, regulatory authorities will also increase law enforcement efforts to promote the quality of information disclosure and other behaviors of listed companies, ensuring market fairness, impartiality, and effectiveness. (New Society)
Edit：Lubaikang Responsible editor：Chenze
Source：ce.cn
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