SSE held a seminar of qualified institutional investors on market integrity construction on 4 December.
The Shanghai Stock Exchange (SSE) held the "Qualified Institutional Investors & SSE's Seminar on Market Integrity Construction" on December 4, the National Law Publicity Day, to solicit opinions and advice of the qualified institutional investors on the integrity construction of the securities market and the SSE, and discuss how the institutional investors could strengthen compliance operation and play a leading role in the integrity construction. SSE President Zhang Yujun attended the meeting together with representatives from nearly 20 institutions of securities companies, fund companies and QFII.
The attendees offered useful advice after comparing notes on such topics as the practical significance of strengthening the securities market's integrity construction, the essence of integrity construction and the integrity focus of the institutional investors.
According to General Manager Li Mingshan of Haitong Securities Co., Ltd., an integrity system of the securities market and the common integrity rules for all members should be established, for the integrity construction was the basis of the securities market. Board Chairman Ding Guorong of Shenyin & Wanguo Securities Co., Ltd. suggested that stricter market entrance rules be made to improve the general quality of market participants, and enhance the authority of the exchange and the effectiveness of industry self-regulatory organization. Vice President Qi Liang of China Galaxy Securities Co., Ltd. said, to solve the institutions' problems in facing the different benefits of market investors and shareholders, it was important to enhance the training of the whole market, including institutional investors, and to use juridical means. Vice President Zhang Tao of Huatai Securities Co., Ltd. suggested that the integrity construction should be linked up with the industry's dynamic rating, and the integrity platform of the securities market should be linked up with the counterparts of other financial supervisory institutions. According to Vice President Chen Ru of Bank of China Investment Management Co., Ltd., the integrity construction, a long-term and fundamental task, called for the basic education and training of the market participants.
In the wrap-up speech, Zhang Yujun elaborated that, in addition to the frontline supervision, the SSE had also made efforts in recent years to promote the integrity construction of the securities market based on the credit archives and data building. Firstly, it paid more attention to the credit status of major market participants such as the listed companies and securities companies, integrating the credit data platform and building relatively systematic credit data archives. Secondly, to give play to the exchange's advantages, it continuously strengthened the education and publicity of market integrity by investment education, market training and law publicity, carrying forward the integrity culture. Thirdly, the credit data and information of relevant market participants were open to the market for their reference. Fourthly, it reinforced cooperation with relevant institutions to share and exchange information, fully utilizing the exchange's credit data and archives. Besides, the SSE also combined integrity with rewards and punishment, linking the punishment with the listed companies' refinancing and securities dealers' rating, so as to support the development and innovation of the market.
According to Zhang, the integrity construction was essential for a sound and sustainable securities market, while the development of qualified institutional investors was an important part in the capital market's integrity construction. Facing the Wall Street financial crisis and at the special stage of China's capital market development, it was especially significant to foster the qualified institutional investors with integrity. Therefore, the SSE will drive the SSE's integrity construction together with the institutional investors and other market participants by giving full play to its advantages and integrate market resources.
Zhang also put forward six requirements on the market integrity construction: firstly, to stick to compliance and lawful operation; secondly, to abide by business ethics; thirdly, to protect the interests of clients and investors; fourthly, to do a good job in the risk prevention and control; fifthly, to assume social responsibilities according to one's own capability and build up a good corporate image; sixthly, to carry out training and education for upgrading the calibers of staff, and boost the industry's image by strengthening self-discipline.
