The Central Economic Work Conference held in December last year has clarified the general direction of the CSRC's work.(File photo)
The Economic Daily published an article yesterday saying that the current stock market is in a downturn and investors are psychologically fragile. Stabilizing finance, stabilizing investment, stabilizing expectations, and boosting market confidence are top priorities. Rumors cannot be allowed to cause wanton trouble and disrupt the market.
Yi Huiman, chairman of the China Securities Regulatory Commission, was attacked by rumors as soon as he took office.China's mainstream state-run media Economic Daily published an article yesterday calling for severe punishment of stock market rumors and pointed out that securities supervision will face five major challenges this year, including standardizing the governance of listed companies, defusing equity pledges, standardizing the behavior of intermediaries, and strictly implementing the delisting system.
Shortly after the stock market opened the day before yesterday morning, a piece of news claiming to be from Bloomberg said that Yi Huiman would host a press conference and said that the large number of listed companies in 2018 had a lot to do with the unmarket-oriented regulatory system. In 2019, the mainThe job is to implement the short-selling mechanism, improve the delisting system, and so on.
As a result, the Shanghai Composite Index opened lower and moved lower, falling more than 1% at one point during the session.The spokesperson of the China Securities Regulatory Commission quickly came out to refute the rumor the day before yesterday, saying that the news was purely a rumor. The China Securities Regulatory Commission will adhere to the direction of marketization and rule of law, accelerate the reform and opening up of the capital market, and hopes that the media will report accurately and objectively, and will not spread rumors if they do not believe them.
Bloomberg has denied any related reports, and the source of the rumors is still unclear.The Economic Daily published an article yesterday saying that the source of the rumors still needs to be investigated carefully.The current stock market is sluggish and investors are psychologically fragile. Stabilizing finance, stabilizing investment, stabilizing expectations, and boosting market confidence are top priorities. Rumors cannot be allowed to cause trouble and disrupt the market.
Analysis: Yi Huiman expects to officially meet with the media in March
Relevant people in Beijing analyzed that the current poor internal and external environment and the downward economic trend have made the majority of investors worried, and any disturbance may cause waves in the market.Yi Huiman just took over as chairman of the China Securities Regulatory Commission last weekend and is not familiar with many situations. It is impossible to communicate with the media so quickly and hastily release the so-called work priorities.It is expected that Yi Huiman will officially meet with the media during the two sessions (National People's Congress and CPPCC annual meeting) in March this year.
Since the capital market is closely related to social stability, Chinese officials have recently repeatedly emphasized the importance of financial stability.
According to some analysts, Yi Huiman has been working at the Industrial and Commercial Bank of China, and does not have deep connections in the political arena.His promotion from the deputy ministerial level chairman of the Industrial and Commercial Bank of China to the ministerial level chairman of the China Securities Regulatory Commission was mainly due to his coming from the grassroots level, his pioneering spirit, and his steady style.Senior management believes that Yi Huiman's characteristics are more suitable for taking on the current duties of the China Securities Regulatory Commission.
The Central Economic Work Conference in December last year has clarified the general direction of the work of the China Securities Regulatory Commission, which is to create a standardized, transparent, open, dynamic and resilient capital market through deepening reforms, improve the quality of listed companies, improve trading systems, and guide moreMore medium and long-term funds will enter to promote the establishment of the Science and Technology Innovation Board and the registration system on the Shanghai Stock Exchange as soon as possible.
Yesterday, the Economic Daily reviewed a series of cases in China's capital market in 2018 and summarized five major challenges faced by the China Securities Regulatory Commission led by Yi Huiman:
The first is to standardize the governance of listed companies.These include preventing large shareholders from hollowing out the company; protecting the participation and voting rights of small and medium-sized shareholders; implementing information disclosure responsibilities; strengthening the dividend responsibilities of listed companies; and preventing and cracking down on insider trading.
The second is equity pledge to demolish mines.This includes preventing the forced liquidation of pledged equity; preventing bailout funds from being misconstrued; and preventing high-premium mergers and acquisitions that use the opportunity of bailing out private enterprises to transfer profits and cause the loss of state-owned assets.
The third is to regulate the behavior of intermediaries.This includes urging sponsor agencies to fulfill their duties and preventing credit rating agencies from opening their eyes and letting others know; standardizing the selection of research reports of listed companies and clearly requiring analysts not to convey benefits, canvassing votes, or showing off bullish stocks; strictly investigating hat-tricks and strictly supervising and punishing them.Those information manipulators who snatch profits and publicly recommend stocks.
The fourth is to strictly implement the delisting system.All consequences and losses caused by delisting will be borne by investors, which is unfair and unreasonable.After the stock trading enters the risk warning board, the delisting company should be ordered to repurchase all the outstanding shares at a certain price.
The fifth is to introduce long-term funds.Long-term funds such as occupational annuities and pensions need capital markets to maintain and increase their value. The Chinese capital market needs to earnestly learn from international practices, take the protection of investors’ rights as an unshakable cornerstone, and protect various shareholders’ rights to know, supervise, participate in decision-making, andOnly by choosing management rights and asset income rights can medium and long-term funds enter the market continuously.
