The "Supervision Quarter" campaign, kick-started by the Shanghai Stock Exchange (SSE) since April 1 this year, has, until now, lasted for three quarters, during which the SSE made interim achievements with its supervision authority displayed by taking a series of effective supervision activities and provided lots of success experience and helpful references for deepening the bourse' supervision and improving the effectiveness and pertinence of supervision, according to the recent report of the Shanghai Securities News.
It is learnt that the SSE cracked down on the market violations in its "Supervision Quarter" campaign from four aspects. First, the supervision was tightened. The concepts of "timely discovery, report and determent" were earnestly carried out in the "Supervision Quarter" campaign, with the supervision punishment means including trading suspension, trading restriction, public censure and circular of criticism adopted boldly, accurately and uncontroversially. Not only did the quantity of supervision punishment far exceed the record, a number of breakthroughs and attempts in terms of penalty strength, use frequency and scope were also conducted to fight the difficult and key issues in supervision including malicious speculation by idle fund and listed company's incompliance in information disclosure. All this contributed to the effective utilization of all resources and the maximum supervision strength.
Second, quick response to the market change and the hot and risky issues in market supervision was achieved. The SSE timely and decisively conducted the special supervision over all kinds of hot, key, difficult and risky issues in supervision including speculation on new stocks, shareholding by fake celebrities, insider dealing, short-term manipulation, malicious stock investment advising, account stealing and selling, speculation on warrants and illegal shareholding decrease of non-tradable shares. In addition, it effectively checked the emerging violations in the bud, gave out the active market activity direction and awed the malicious tendency by intensifying its daily risk control.
Third, relevant supporting rules and guidelines were promulgated to improve the flexibility and transparency of supervision. The SSE cleared up, evaluated and reviewed its business rules, introduced the standard documents including the "Guidelines for Continuous Supervision over Listed Company" and the "Guidelines for Election and Conducts of Directors", summed up its experience in litigation response and supervision over key accounts and conducted the special research on classified supervision over investors. All this has given full play to the supporting function of self-regulatory management mechanism including disciplinary penalty to the supervision, timely elevated the flexibility and transparency of supervisory means in coping with market changes and closely connected the legal system research with the business rules perfection, self-regulatory supervision system construction and judicial environment optimization.
Fourth, the regular communication mechanism was established to ensure the smooth information exchange among all parties and the overall planning of supervision. Through the communication meetings regularly held by the six-person supervision team made up of the heads of six major business departments of the SSE, a good coordination mechanism of exchanging work progress by all supervision departments was established to give full play to the joint supervision under supervision measures and business operation mechanism.
