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In order to commemorate the advent of the 12th “December 4th” National Legal Publicity Day, Shenzhen Stock Exchange, China Securities Depository and Clearing Corporation Limited Shenzhen Branch, Shenzhen Securities Information Co., Ltd. jointly launched an annually on-line law dissemination and education activity.
A relevant principal from SZSE expressed that SZSE has always prioritized the dissemination and education of legal system as an important aspect of work on strengthening SZSE regulation system development. With the theme being Prevention and Control of Insider Trading and Protection for Investors’ Rights and Interests, the law dissemination and education activity aims at disseminating such legal knowledge as Criminal Law, Securities Law, and judicial interpretation, enhancing investors’ capability of identifying the insider trading and rational participation in securities investment, and their awareness of law compliance, fostering zero tolerance social ambiance for insider trading, and eliminating the source breeding ground for insider trading.
As indicated by the principal, ever since this year, China Securities Regulatory Committee has reiterated that the unchecked insider trading would impair the foundation of sound development of capital market, therefore cracking down the insider trading shall be on the top of the agenda. Being at the front line of the market, SZSE has always attached great importance to the comprehensive work on prevention and control of insider trading. To accommodate to the feature of rapid evolution of the violation forms of insider trading, SZSE constantly improves the supervision system, enhances the capability of detecting the insider trading; to solve difficulty of keeping the confidentiality of the insider information, SZSE specifies the rules on filing the insider, propels the systemic and procedure development of public companies’ insider information management. In the case of Merge and Acquisition, and restructuring, of which insider trading is difficult to prevent and control, SZSE issues Circular of Enhancing the Supervision on Public Companies’ Abnormal Trading Related to Major Assets Restructuring, which sticks to the principle of ‘stock abnormal trading verification shall be launched as soon as the restructuring is initiated; the restructuring of the listed company shall be immediately suspended as soon as restructuring is deemed by CSRC to be involved with insider trading. The process of restructuring shall be resumed as soon as the suspicion is clear, otherwise, the restructuring shall be terminated as soon as the suspected behavior is convicted violation’. With cracking down the insider trading being the permanent theme for market supervision, SZSE will continue to perform its duty of self-discipline and supervision, constantly improve the measures and methods of supervising, firmly crack down the violations and discredit behavior, which include insider trading, market manipulation, false statement that jeopardize the market order, impair the legal rights and interests of investors
It is reported that during the two-hour exchanging activity, law dissemination and education teams answered more than 300 investors’ questions, which covers the fields including identification of insider trading, and the prevention and control thereof, development of integrity file development, delisting system, information disclosure, standardized operation, and securities trading, etc.
