In order to urge securities companies to strengthen investor education in rational investment, improve the professional qualities of their personnel engaged in investor education and promote the cultural development of rational investment, the Shanghai Stock Exchange (SSE), in line with the united deployment of the China Securities Regulatory Commission (CSRC), held the mobilization meeting and the lecturer training class for the special lecture tour themed "guidance for rational investment" yesterday, with the attendees being over 200 contact persons for investor education and internal lecturers from over 100 securities companies. Also present at the activity were relevant persons-in-charge of the CSRC Investor Protection Bureau and the SSE.
A person-in-charge of the SSE pointed out that it was the right time to guide the rational investment in the capital market. Research shows that the speculation on new shares, small-cap shares and bad-performed shares respectively in a blind, crazy and greater-fool approach, frequent trading and other irrational investment behaviors on the market are the important causes for the longstanding sluggish market and the investors' losses. According to the data for the 4 kinds of new shares whose trading was temporarily suspended on the first day of listing on the SSE due to abnormal trading from 2009 to 2011, the small and medium-sized investors played a major role in buying shares on the upswing, 90% of whom suffered losses. Therefore, it is of great significance to guide and promote investors to conduct rational investment for the protection of their legal rights and interests.
The person-in-charge stressed that guidance for rational investment was not only a regulatory requirement but also an objective demand for securities companies to foster stable customers, prevent operational risks and boost core competitiveness. Securities companies should play a major role in the guidance for rational investment and the publicity of relevant knowledge, which can be specified as follows.
First, securities companies should enhance the consciousness of guidance for rational investment and implement the requirement into every aspect of corporate businesses. Second, they need to establish a full-fledged investor service system as well as keep on adapting to new situations, learning new knowledge and improving the services for customers. Third, they need to publicize the knowledge about rational investment in a wide and deep way with multiple publicity means and optimized methods. In future, the SSE would continue to push forward the cultural development of rational investment, adopt effective measures to promote the formulation of relevant rules and regulations, upgrade the relevant regulatory environment and create a cultural atmosphere of rational investment.
An official of the CSRC Investor Protection Bureau said that the protection and services for investors was a systematic project, which required the whole society, especially the market participators, to join in. The CSRC, in compliance with the market demands, had set up the investor protection bureau and established a work system for the protection and services for investors, with the CSRC as the leading role, the exchanges, the securities associations and other self-regulatory organizations as well as all the units in the securities community as the main force, the securities and futures agencies as the main implementers and the media as the constructive participators and supervisors. Securities companies, as the agencies directly serving investors, are the major force for the protection and services for investors, which should play their roles and perform their duties in the investor education and services.
The official put forward four requirements for securities companies to do well in the protection and services for investors as follows. Firstly, securities companies need to take the lead in guiding investors to conduct rational investment and value investing. The personnel engaged in the services for investors need to get rid of the interest-oriented ideas, focus on the understanding and actively lead investors to conduct rational investment in a bid to promote the formation of good investment habits and sound investment culture on the market. Secondly, they need to push forward the investor suitability management by managing investors in terms of levels, grades and categories, providing them with differentiated and individualized services and selling products to suitable investors. Thirdly, they need to inform investors of relevant information and risks in an active, objective, true and adequate way, and guide the investors to make rational judgments and choices. Fourthly, they need to persevere in penetrating the education and services for investors into the daily work of their personnel engaged in investor education.
As soon as the mobilization meeting came to an end, the lecturer training class for the special lecture tour began. According to sources, the SSE would cooperate with the branches of the CSRC in various areas this year to successively hold 18 rounds of special lecture tours for rational investment, with the trainees to be the professionals engaged in investment education in the business departments of all the securities companies and the trainers to be mainly the SSE's experts and the excellent lecturers selected from the trainees of securities companies in the lecturer training.
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Shanghai Stock Exchange Urges Securities Companies To Strengthen Investor Education In Rational Investment
Date 14/03/2012