Gui Minjie Of The China Securities Regulatory Commission: Continue To Promote Shanghai Stock Exchange's Legal Construction

"Chairman Guo Shuqing of the China Securities Regulatory Commission elaborates on the direction and tasks for improving rule of law in the capital market in the next period to come and stresses the point of adhering to the rule-of-law development path in the innovation and development of the capital market in his article titled To Attach Greater Importance to the Role of Rule of Law in Promoting Innovation and Development of the Capital Market published on December 4, the National Law Publicity Day that has just passed", said Governor Gui Minjie of the Shanghai Stock Exchange (SSE) at the 3rd SSE Legal Forum on December 8, "These statements and viewpoints reflect the concept of securities and futures regulatory organs, which gives a good guidance for the legal construction of the capital market. In response, the SSE will go all out to coordinate with the regulatory organs for advancing the legal construction of the market".

The 18th CPC National Congress has set the grand goal of building a moderately prosperous society in all respects by 2020 and expounded the importance and urgency of promoting rule of law in all respects. The congress has stressed that we should not only perfect the system of socialist laws with Chinese characteristics, promote law-based administration by practicing law enforcement in a strict, rationalized, fair and civilized way, and carry out publicity and education on legal systems to carry forward the socialist rule-of-law spirit, but also include freedom, equality, justice and other modern legal concepts together with rule of law in the socialist core value system.

Gui Minjie said, "In future, we need to take it as an important task to further improve rule of law for promoting the scientific development of the capital market. By dint of system supply and innovation, we will improve rule of law in a scientific approach, and advance the development of the capital market to a new level".

On that day, Gui Minjie elaborated on the SSE's principles and ways of further promoting legal construction from the following four points. First of all, the SSE should perfect the system of rules to meet the market demands for development and change.

It is disclosed that up to now, over 220 rules have been put into use in the SSE market. The system of self-regulation rules with three basic rules for listing, trading and member management as a main part as well as detailed implementation rules, guidelines and notices as a supplement has taken shape. However, these rules are much involved in shares, pooled trading, regulation and entities but less related to bonds, funds and derivatives, non-pooled trading, services and procedures, which can no longer meet the actual demands of the SSE market for all-round development.

"We need to push forward the formulation and revision of rules closely related to the reform and innovation of the market, and further expand the coverage of the rules, in a bid to boost the innovation and development of the market", said Gui Minjie.

Besides, the SSE should earnestly fulfill its duties and strictly implement legal systems of the capital market. "Over the years, the SSE has endeavored to play its role as a guardian for the market order. With the expansion and complexity of the capital market, market participants have higher and higher requirements and expectations of the exchange for strictly enforcing laws, safeguarding fairness and justice of the market, and protecting rights and interests of investors. Therefore, the exchange needs to strengthen the law-enforcement and law-abiding concept, enrich the methods of self-regulation, and strive to fully and effectively play its role in punishing illegal and dishonest behaviors in the market and rationalizing the market order", said Gui Minjie.

Moreover, Gui Minjie pointed out that the SSE would strengthen legal publicity to raise the legal awareness of market participants.

Statistics shows that the SSE has launched lots of activities for legal publicity and education, such as compiling books and materials, setting up special columns in newspapers, opening business consulting services, establishing online colleges for investor education and organizing market trainings. In future, the exchange will innovate in the ways of legal publicity and education, enrich the means of legal publicity, and improve the effect of legal publicity for helping market participants to raise their awareness of integrity and compliance.

Nowadays, the capital market attaches increasing importance to the legal construction while the market participants hold high expectations for the exchange's rule of law in its work. Therefore, Gui Minjie stressed at last that the SSE would handle affairs by law and promote rule of law in its work.