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The training course on supervision over insider dealing for secretaries to directorate of listed companies has recently been held by the Shanghai Stock Exchange (SSE) in Beijing. Over 280 secretaries to directorate and representatives of securities affairs from listed companies attended the course.
The training aims to prevent and reduce insider dealing from the source by instructing and urging senior management of listed companies including secretaries to directorate to earnestly fulfill their duties of information disclosure management in a bid to improve the standardized operation and corporate governance of listed companies.
One of the focuses of the training is to help secretaries to directorate and relevant personnel, who play a crucial role in insider information management and insider dealing prevention in listed companies, have a thorough understanding of regulatory requirements by briefing them on the updates in penalties for insider dealing and accurately interpreting the regulatory policies. The trainers interpreted relevant laws and regulations on insider dealing supervision and introduced the SSE's duties and means in insider dealing supervision. Besides, the features of insider dealing and the orientation of regulatory policy were analyzed in depth through the typical insider dealing cases of Xiamen Prosolar Technology Development Co., Ltd., Sichuan Shengda Industrial Co., Ltd. (Sichuan Shengda), Sichuan Xinguang Silicon Technology Co., Ltd. and Xi'an Gree Real Estate Co., Ltd. (Gree Real Estate). The inference of insider dealing through circumstantial evidence in the case of Sichuan Shengda and the inclusion of disclosing insider information due to negligence into the subjective elements of committing illegal insider trading in the case of Gree Real Estate were posed as a strong warning for the secretaries to directorate and representatives of securities affairs participating in the training. They said that the recently investigated typical cases of insider dealing not only demonstrated regulatory authority's scientific legal concept and policy orientation as well as refined regulation and penalty standards for insider dealing, but also showcased the determination of regulatory authority in cracking down on insider dealing and maintaining normal market order.
The SSE asked the insiders of insider information in listed companies to learn from the typical cases and standardize their trading behaviors to avoid insider dealing and urged the persons in charge of information disclosure in listed companies to earnestly fulfill their information disclosure management duties by actively publicizing relevant laws and regulations on insider dealing within the listed companies, help the companies manage insider information, and guide and remind other insiders of insider information in the companies to deter and reject insider dealing.
SSE Vice President Zhou Qinye said that insider dealing, a "cancer" jeopardizing the healthy, stable and sustainable development of securities market, is one of the focuses in supervision. The SSE will continuous to leverage its advantage to fulfill its self-regulatory supervision duties for standardized growth of listed companies by intensifying the insider dealing supervision according to the latest market and policy trends, taking strict precautions and controls against insider dealing in such links as abnormal trading monitoring and information disclosure of listed companies, and offering regular business trainings to key personnel.
