Sun Nianrui, Deputy Director of the China Securities Regulatory Commission Listed Companies Oversight Division Source: International Southern Finance Forum
On November 28, at the Southern China International Finance and Economics Forum held in Guangzhou, Sun Nianrui, deputy director of the China Securities Regulatory Commission’s Listed Companies Oversight Division, delivered a keynote speech, saying that the China Securities Regulatory Commission was soon planning to launch an initiative special corporate governance and adherence to information disclosure and corporate governance. A “two-wheel drive,” in 1-2 years, strengthens the requirements of a corporate governance baseline, and introduces investors to a listed, transparent and truly listed company.
Sun Nianrui especially reminded listed companies to resolve warranty issues before the 2020 annual report was revealed, otherwise they will face serious consequences once the window period has passed.
On October 9th, the State Council issued the “Opinion on Further Improving the Quality of Listed Companies” (Colliery No. 14) (hereinafter referred to as the “Opinion”) to make comprehensive arrangements for improving the quality of listed companies.
Sun Nianrui said the “Opinion” is a program of action for promoting the high quality development of listed companies in the future. In the next phase, in terms of oversight of listed companies, the China Securities Regulatory Commission will focus on three key aspects to improve the quality of listed companies.
Improving the level of governance and promoting standardized operations is the foundation for improving the quality of listed companies. In the near future, the China Securities Regulatory Commission intends to launch a special act on corporate governance, adhere to the “two-wheel drive” of information disclosure oversight and corporate governance oversight, and spend 1-2 years to strengthen corporate governance baseline requirements, improve the relevant system of corporate governance rules, and advocate for best corporate governance. Exercise and lead listed companies to form a set of effective corporate governance restraint mechanisms that are in line with China’s national conditions, adapt to the actual conditions of listed companies, and present a standard, transparent and truly listed company to investors.
Second, both gates should be properly controlled. The import gate introduces a “live water source” to the market, and the export gate optimizes the quality of stock companies.
The “Two Innovations” (Science and Technology Innovation Board and ChiNext) have successively implemented the registration system. Currently, there are nearly 200 companies listed on the Science and Technology Innovation Board, and 40 or 50 new companies are listed on the ChiNext. The publishing efficiency has been significantly improved. In terms of access, it is necessary to respect the fundamental significance of the registration system and learn from international best practices, but also reflect the characteristics of Chinese characteristics and stages of development, and deeply understand the requirements of improving the quality of listed companies under the background of the registration system, and take marketing and the rule of law as the criteria. Prevent illness from entering the mouth.
At the same time, establish a variable and normalized listing mechanism. After the registration system, the pace of listing has accelerated, the market exit mechanism has become smoother, and the delisting oversight must be strengthened at the same time.
Sun Nianrui emphasized that delisting is not an end in itself. The key is to solve the problems of existing listed companies and improve the quality of existing listed companies. Therefore, the exit mechanism is not just a listed companies mechanism, but also an exit of non-performing assets: low-quality listed companies should accelerate their delisting, and low-quality assets should be cleared faster. Therefore, the “three batches”, the delisting batch, the reorganization batch, and the restructuring batch, are aimed at exit through multiple channels, delivering high quality assets, solving stock problems and improving company quality.
“The action plan for improving the normalized dealing mechanism has recently been reviewed and approved by the Central Deep Reform Commission. In the next phase, the rules will be reviewed at the level exchange in accordance with the provisions of the new “Securities Law”, and implementation will be promoted.
Third, resolve remaining problems and apply the principle of distributed disposal to solve the problem of security of occupation.
First, make good use of the distributed disposal plan to solve the problem of security of occupation.
Council of State Document No. 14 sets out specific requirements for capital attribution problems and illicit securities that have formed. The historical problems that have formed must be paid for or resolved within a time limit.
“The essence of the policy is surrender and opportunity. The controlling shareholder or relevant responsible person who has broken the regulations should cherish and capture the period of this policy window. Prior to the disclosure of the 2020 annual report, the refund should be repaid and the guarantees should be released. ”Sun Nianrui particularly reminded that if the funds are not repaid or the warrant is canceled, there will be serious consequences after the window period has passed. The Covered document No. 14 also emphasizes another point. Capital possession problems and illegal securities that have not been rectified within a deadline or have just occurred, require serious investigation and dealing with criminal offenses.
At the same time, for financial fraud and other illegal activities, Sun Nianrui said it will maintain “zero tolerance” and crack down on it severely, form a three-dimensional liability system, and increase the cost of breaking relevant entities into great.
In response to various risks such as equity pledges, bond defaults, and illegal operations, the China Securities Regulatory Commission strengthened communication and coordination with local party committees and governments, and continued to adhere to the principle of “one policy, one policy”. However, some “hard bones” issues are not completely resolved. The risks are still quite obvious. Relevant listed companies should seek guidance and support from local governments and relevant departments to address these unresolved issues.Return to Sohu to see more