Shenzhen Stock Exchange (SZSE) has recently released its 2014 Self-discipline Supervision Work Report, which covers the main tasks of institution construction, regulatory enforcement, regulatory transition, standardization and innovation, and reinforcement of medium and small investor protection and risk prevention and control undertaken in 2014.
According to the Report, achievements have been made by SZSE in deepening the reform in key areas, promoting the regulatory transition, carrying out standardization and innovation activities pursuant to laws, reinforcing the protection of small and medium-sized investors, and strengthening the risk prevention and control in 2014.
In respect of institution construction, the ways and methods for market players to take part in rule-making were broadened based on the spirits of scientific and democratic legislation; the Stock Listing Rule was revised to put the new wave of delisting system reform into practice; a concise, efficient and multi-level system of rules with the three major business rules as the core was basically formed.
In respect of regulatory enforcement, the disciplinary sanction mechanism of “separating investigation and hearing” was upheld to ensure the openness and transparency of enforcement procedures and the constant improvement in enforcement efficiency. In 2014, SZSE made 54 disciplinary sanction decisions, involving 29 listed companies and 185 responsible persons. It also imposed 53 trading restriction measures on 112 securities accounts involved in significant abnormal trading.
In respect of regulatory transition, the fourth clear-up work was completed by SZSE and examination and registration items were streamlined by 31% as per the deregulation request of strengthening the process and ex post supervision; the focus on information disclosure was adhered to and the Information Disclosure Express Practice was fully propelled by means of simplifying the rules and procedures for restructuring business and optimizing rules of industrial supervision and classified supervision; compliance management over members was strengthened by embedding supervision in services; and supervisory transparency was enhanced through multi-channel openness of supervisory information.
In addition, SZSE optimized the business rules and fundamental institutions that support innovation, and standardized and guided all kinds of innovation of products and businesses according to laws; improved the voting mechanism for small and medium-sized investors and perfected the diversified dispute settlement and relief mechanism, protecting the legal rights and interests of medium and small investors throughout the self-discipline supervision work; and carried out comprehensive risk screening over listed companies, strengthened the monitoring over systemic risk, and reinforced credit supervision in the bond market, safeguarding the safe and stable operation of the market.
The Report also presents an outlook of the SZSE’s self-supervision framework for the year of 2015. SZSE will painstakingly study and adhere to the spirits of the Fourth Plenary Session of the 18th CPC Central Committee and the Central Economic Working Conference, conscientiously implement the arrangements in the National Work Conference on Securities and Futures Regulation, enhance the efficiency of self-discipline regulatory transition, further improve the level of marketization, legalization and internationalization, adapt to, serve and take the lead in the “New Normal” phase, and endeavor to serving the capital market and national development strategies at a higher level and a wider scope.