jinglebingo| China Securities Regulatory Commission: In 2023, it will investigate and handle 717 illegal securities and futures cases, with fines and fines of 6.389 billion yuan

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In 2023, the SFC investigated and dealt withJinglebingoThirty-two of the listed companies have been forced to delist.

On May 15, the CSRC issued a summary of law enforcement in 2023. Data show that in 2023, the CSRC investigated and dealt with 717 illegal cases of securities and futures, an increase of 19% over the same period last year; administrative penalties were imposed, an increase of 40% over the same period last year; 1073 people (families) were punished, an increase of 43% over the same period last year; 103 people were banned from the market, an increase of 47% over the same period last year; confiscation of 63%Jinglebingo8.9 billion yuan, an increase of 140% over the same period last year; 118 cases and clues suspected of securities and futures crimes were transferred to public security organs, effectively maintaining the operation order of the capital market and effectively protecting the legitimate rights and interests of investors. the effectiveness of cracking down on illegal acts of securities and futures continues to show, and the "zero tolerance" crackdown on high pressure has been continuously consolidated.

Pay close attention to the "key minority", strive to eradicate the "malignant tumor" in the capital market, such as fraudulent issuance and financial fraud, and promote the improvement of the quality of listed companies.

-- adhere to the principle that "declaration means responsibility". For issuers and intermediary agencies suspected of major violations of laws and regulations, even if they withdraw their applications for listing, they should persist in checking to the end, put an end to "reporting with illness" and "enter through the mouth", and improve the quality of listed companies from the source. In 2023, four cases of false financial data submitted by issuers during the issuance declaration stage were investigated and dealt with, in which Science and Technology Innovation Board IPO enterprise Silxin, in order to meet the issuance conditions, falsely increased profits by 118% in 2020, which was the first fraudulent issue case found and dealt with by me at the declaration stage under the registration system, and the company and relevant responsible persons were fined 16.5 million yuan.

-- adhere to systematic governance. Focus on the abuse of accounting policies, large amounts of asset impairment to adjust profits and other illegal acts, seriously investigate and deal with 32 companies with bad circumstances, and severely crack down on illegal acts of financial fraud in the name of impairment. Dig deep into the interest chain of financial fraud, in view of the cross-correlation of the subjects involved in many financial fraud cases, the high similarity between suppliers and customers, and the cooperation of upstream and downstream fraud, series and parallel analysis, comprehensive arrangement, centralized investigation and handling, effectively purify the ecosystem of listed companies.

-- adhere to three-dimensional accountability. On the basis of increasing the intensity of administrative punishment, we should comprehensively use a variety of means, such as compulsory delisting, criminal liability and civil compensation, to comprehensively increase the cost of breaking the law. In 2023, 32 listed companies that I will investigate and deal with have been forcibly delisted and 42 listed companies suspected of crimes have been transferred to the public security organs. In the Zeda Yi Sheng and Amethyst storage fraud issuance case, the company and the responsible person were fined 142.5 million yuan and 90.71 million yuan respectively by me, and the public security organs took criminal compulsory measures against more than a dozen responsible personnel. both companies were forced to withdraw from the market because of major violations, and investors received more than 1.3 billion yuan in civil compensation, forming a strong law enforcement deterrent to listed companies that dared to try the law.

-- adhere to accurate accountability. Adhere to seeking truth from facts, not in vain, equal to excessive punishment, increase the punishment of the "first evil" and "key minority", and reduce the adverse impact on the company's operation as much as possible. If Ye, the actual controller of the company in the Qixin shares case, instructs the company to engage in fraudulent issuance and information disclosure violations, I will impose a fine of 14 million yuan on Ye and take measures to ban access to the securities market for life. For illegal occupation guarantee cases, distinguish the main responsibilities of listed companies, actual controllers and Dong Jiangao, and deal with them separately so as to avoid causing "secondary harm" to the company.

Pay close attention to the lack of diligence and due diligence, tighten the responsibility of the "janitor", and supervise and guide intermediary institutions to improve the quality of practice.

-- persisting in "investigating more than one case." On the basis of investigating and dealing with cases of information disclosure violations such as fraudulent issuance and financial fraud in accordance with the law, we should comprehensively verify the due diligence of the intermediary agencies involved in the case, and seriously deal with those suspected of breaking the law and crimes, and will never tolerate them. For example, the illegal and dereliction of duty of intermediary agencies involved in the whole chain crackdown on private network communication series case, Zixin Pharmaceutical Financial Fraud case, etc., shall be held responsible for the recommendation, audit, law and other intermediary agencies related to the fraudulent issuance of Gome Communications.

-- adhere to the "double penalty system". Severely punish intermediary agencies that fail to fulfill their duties, and impose "double penalties" on institutions and personnel in accordance with the law. In 2023, administrative penalties were imposed on 25 intermediary institutions and 94 employees. In addition to the application of "property penalty" in accordance with the law, we should make full use of legal empowerment to explore the application of "qualification penalty". For example, if Zhongtian Huamao Accounting firm fails to perform due diligence in the audit practice of Dongfang net Power Annual report, the business income shall be confiscated and fined five times, and its securities service business will be suspended for six months; Sun, head of the Guohai Securities Project, which has not been diligent and responsible for the issuance of corporate bonds for Shengtong Group, has adopted a five-year ban on the securities market.

Pay close attention to "internal and external collusion", "self-theft" and "recidivism", maintain a high-handed law enforcement situation against illegal reduction, market manipulation and insider trading, and actively create a fair, transparent and predictable trading environment.

-- strictly investigate the illegal reduction of holdings. Focus on major shareholders, especially controlling shareholders, and actual controllers, and resolutely investigate and deal with nine cases of illegal reduction. Among them, the actual controller of China Nuclear Titanium dioxide (rights protection) conspired with CITIC Securities, CITIC Securities, and Haitong Securities to use margin financing and derivatives tools to reduce their holdings, strengthen penetrating supervision, and in accordance with the principle of substance over form, it is determined in accordance with the law that relevant units and individuals constitute a restricted period transaction, with a total forfeiture of 235 million yuan.

Crack down on internal and external collusion to manipulate stock prices. In accordance with the law, some listed companies' actual controllers and Dong Jiangao will be severely punished to manipulate the market in the name of market value management by making use of the advantages of funds, shareholding and information. In 2023, nine cases of actual controllers and executives of listed companies colluding with hot money to manipulate the company's stock price were investigated and dealt with, and the relevant responsible units and personnel in Jintuo shares (rights protection), Senyuan Electric (rights protection) and Xinmei Star (rights protection) cases were fined 660 million yuan, 610 million yuan and 95.67 million yuan respectively.

-- to deal with recidivism of market manipulation seriously. Individual lawbreakers who have been punished for manipulating the market for many times and who have not stopped being punished shall be dealt with severely and severely in accordance with the law. For example, if Wang's copper gang manipulates seven stocks before and after, I will impose a fine of 1.5 billion yuan and transfer it to the public security organ for criminal responsibility; Ren's gang manipulates stocks for a long time, and the amount of money involved in the case is large, and I will commit the crime again after being punished three times. I will impose a fine of 297 million yuan and take measures to ban access to the securities market for life.

-- from the actual investigation and handling of a new type of illegal cases. By means of data analysis, we will crack down on new types of illegal activities in the capital market that are constantly changing and escalating in accordance with the law, and resolutely curb the momentum of spread. For example, in accordance with the law, some gangs use over-the-counter individual stock options and other financial derivatives to magnify the manipulation of earnings, and some personnel manipulate LOF funds, convertible bonds and other illegal acts. Actively cooperate with public security organs to investigate and deal with illegal market manipulation activities in which illegal gangs use remote manipulation software to hide traces of transactions, quickly sell warehouses, smash and ship goods, and seek huge illegal interests.

-- strictly investigate and deal with insider trading of key personnel. There are listed companies or purchasers of listed companies, controlling shareholders, actual controllers, and Dong Jiangao of counterparties to major asset restructuring transactions of listed companies, put professional ethics behind them, take advantage of their identity to obtain inside information, and "steal from themselves" for their own illegal profits must be severely punished. For example, Zhang, chairman of logarithmic Technology, issued a fine of more than 66 million yuan for insider trading in the company's shares, and took measures to ban access to the securities market for life; Huang, a counterparty director of Suotong Development, was fined more than 5000 million yuan for insider trading. In addition, I will also seriously blame public officials for using insider information to trade "three Gorges Water Conservancy", "East China Science and Technology" and other cases.

Keep a close eye on bonds, private equity, futures and other fields, resolutely highlight the sword to illegal acts, and leave no dark corner or dead corner of financial supervision and law enforcement.

-- resolutely crack down on illegal activities in the bond market. Seriously investigate and deal with the illegal disclosure of information and misappropriation of funds hidden behind the default of bonds. Eight cases of bond violations were handled in 2023, involving 4 cases each of the exchange and the interbank bond market. If Evergrande real estate recognizes real estate sales revenue in advance, falsely increases revenue and profits by 2019, and causes fraudulent issuance of five corporate bonds, it is proposed to impose a total fine of more than 4.2 billion yuan on the company and relevant responsible persons. The mortgage property disclosed by Yuangao Industries was seriously inconsistent with the mortgage registration and the actual situation, and failed to disclose the bankruptcy information applied to the court and the default of related bonds, resulting in a total fine of 16 million yuan to the company and relevant responsible persons.

-- step up law enforcement against illegal private placement and futures. In 2023, 29 private placement and futures cases were handled, including misappropriation of fund property, violation of investor appropriateness system, illegal promised income, illegal investment operation, failure to disclose information in accordance with regulations, and so on. Pay close attention to relevant risk-related cases, such as eight private equity firms through equity holding and other covert ways to control a number of private equity firms to invest in each other, fabricating underlying targets and valuations, involving thousands of investors, accumulating tens of billions of yuan in private equity fund property. If a futures company fails to perform its management duties to its subsidiaries, fails to submit true, accurate and complete information, and is suspected of engaging in illegal financial activities, I will promptly file a case for investigation and handling.

-- severely crack down on employees' violations of laws and regulations. We will strengthen the management of employees, crack down on violations of laws and regulations, and be strictly accountable to institutions that lack effective control. Handle 61 cases of employees violating laws and regulations, covering illegal types such as illegal trading of stocks, private entrustment by clients, and fund practitioners using undisclosed information to trade. For example, focus on investigating and dealing with illegal and illegal acts such as buying and selling stocks by some employees of China Merchants Securities, impose administrative penalties on 63 people, confiscate a total of 81.73 million yuan, and ban one person from entering the securities market for life.