China to severely punish illegal activities in securities market
0 Comment(s)
Print
E-mail Xinhua, July 7, 2021
China will clamp down on illegal activities in the securities market and promote the high-quality development of the capital market, said an official document released on Tuesday.
It was jointly issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council.
It specifies the targets in upgrading the securities law-enforcement and judicial systems by 2022 and 2025. The targets include effectively curbing the frequent occurrence of major illegal and criminal cases and making notable advances in the transparency, standardization, and credibility in the securities law-enforcement and judicial system.
Efforts should improve the securities legislation mechanism while strengthening criminal punishment and market discipline, read the document.
In terms of law enforcement cracking down on illegal securities activities, the document calls for improving investigation, inspection, and trial mechanisms.
The country should strengthen cross-border oversight of law-enforcement and judicial cooperation and step up efforts to build the credit system in the capital market, the document added.
For a long time, due to the shortcomings in the system design and the subsequent low cost of committing a crime, listed firms have conducted illegal actions such as financial fraud, insider trading, and market manipulation, Yi Huiman, chairman of the China Securities Regulatory Commission, told Xinhua in an exclusive interview.
China's capital market has been undergoing profound structural changes in recent years, Yi said. He added that the document's release would provide an essential guarantee for comprehensively deepening capital market reform and promoting its high-quality development.
It is vital to accelerate the construction of a more mature capital market system and significantly raise the violation cost in the capital market, Yi said. He added it is also essential to maintain the capital market order and protect investors' lawful rights and interests.
The document demonstrates China's zero-tolerance policy for illegal behaviors, Yi said.
The country would strictly and promptly investigate and deal with major criminal cases such as fraudulent issuance, market manipulation, insider trading, and fabricating and disseminating false information, he added.
Go to Forum >>0 Comment(s)