CCTV News: On February 21, the Supreme People's Procuratorate and the China Securities Regulatory Commission jointly held a press conference on "Strictly cracking down on securities violations and promoting the healthy and stable development of the capital market."
He Yanchun, director of the Administrative Penalty Committee of the China Securities Regulatory Commission, introduced at the meeting that the CSRC continues to impose full-chain crackdowns and punishments on financial fraud cases: First, in terms of the intensity of punishment, administrative penalties were imposed on 61 financial fraud cases in 2024, an increase of 17% year-on-year; the average fine amount was 15.77 million yuan, an increase of 12% year-on-year; the 7 cases were fined according to the statutory maximum limit, an increase of 75% year-on-year; the market ban on 69 "directors, supervisors and senior executives" personnel, an increase of 9.5% year-on-year. Second, in terms of accountability, there were 35 cases where the listed companies and their responsible personnel were punished, and the major shareholders and actual controllers were also held accountable for the instructing responsibilities, an increase of nearly 60% year-on-year; administrative penalties were imposed on 39 intermediary institutions, and business was suspended on 5 intermediary institutions, and the responsibilities of sponsors, accounting firms and other institutions were continuously strengthened. Third, in terms of regulatory coordination, we will take the lead in establishing a mechanism for reporting and handling clues for third parties to cooperate in fraud, and transfer clues for cooperation in fraud by financial institutions, upstream and downstream customers, third-party enterprises, etc. to the relevant competent departments or local governments.
In the next step, the CSRC will insist on punishing and preventing and treating both the symptoms and the root causes, and identify fraudulent clues through multiple channels such as non-site supervision, on-site inspection, public opinion monitoring, complaint and reporting processing, especially to improve the reward system for reporting clues, effectively play the role of internal "whistleblowers", keep a close eye on suspicious signs such as financial bathing, performance changes, and abnormal house change, improve the ability to discover illegal and irregular regulations, optimize the investigation process, improve the efficiency of punishment, and continuously consolidate and continuously strengthen the "strict" atmosphere. At the same time, we will promote further strengthening of civil compensation and criminal crackdowns and strengthen three-dimensional accountability.
He Yanchun said that listed companies are excellent representatives of Chinese companies, and only a very small number of them are committing financial fraud. With the continuous strengthening of regulatory enforcement, the problems accumulated in the past are being exposed and cleared up faster, and the situation facing the capital market is still complex and severe, with increased external imported risks, intertwined and superimposed with internal risk factors. Some listed companies and their major shareholders and actual controllers may still take risks and implement financial fraud due to operational difficulties, delisting and protecting their shells, etc. It takes a process to reduce the stock and curb the increase. It is expected that there will still be a certain number of financial fraud cases in the future period, but this does not affect the overall situation of high-quality development of my country's capital market. We firmly believe that the overall quality and investment value of listed companies will continue to improve.
