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Yesterday was the 7th National Legal Knowledge Popularization Day. The Shanghai Stock Exchange (SSE) held a special press conference on basic methods of protection of investors' rights and interests. From the following five aspects, Xu Ming, SSE Assistant to President, attended the meeting and summarized the exchange's implementation of the unified arrangements of the China Securities Regulatory Commission (CSRC) and the arduous protection of investors' rights and interests.
Firstly, the SSE was active in the legal system construction with emphasis on "Two Laws" (the "Corporation Law" and the "Securities Law"), and perfected laws and regulations concerning the protection of investors' rights and interests. In recent years, the SSE has made efforts to participate in the legal system construction of the securities market and to promote the establishment and perfection of legal systems concerning the protection of investors' rights and interests. During the process, in particular, of the Two Laws' modification, it conducted market researches for many a time, sponsored or undertook various theory seminars and expert panel discussions, and collected wide market opinions including those from investors in order to create an atmosphere for public opinions and resonate the voices in the industry. The SSE was also directly involved in the modification process, calling for a system for protecting investors' rights and interests complying with international practice and corresponding to the actual conditions of China's securities market, and many legislation proposals it put forward attracted attentions of the legislative institutions. After the modification's implementation, the SSE continued its efforts in the formulation and modification of supporting regulations, administrative rules and market policies concerning listed company governance, acquisition of listed companies, securities company supervision and equity division reform, all related to the protection of investors' rights and interests.
Secondly, the SSE constantly perfects its business rules and basic systems that protect investors' rights and interests. In recent years, the SSE carefully implemented the Two Laws, modified in succession the "Trading Rules", the "Stock Listing Rules", the "Listing Rules of Securities Investment Funds", the "Listing Rules of Corporate Bonds" and formulated the "Member Management Rules", making the SSE's basic business rule system and basic system more and more mature. Also formulated were such supporting business rules as the "Listed Companies' Internal Control System Guideline", the "Detailed Implementation Rules for Online Voting of Shareholders' Meeting of Listed Companies" and the "Detailed Rules for Overall Designated Trading", and detailed business rules involving the product and business innovation on the securities market, including the "Provisional Measures on Warrant Business Administration".
Thirdly, the SSE has been conscientiously performing the function of the self-regulatory supervision and created a market order that helps investors' rights and interests protection. The SSE has strengthened the function of the Exchange's Board of Governors, successively establishing the Listing Examination Commission and the Review Committee composed of representatives of various interests, insiders, experts and scholars. The SSE should constantly strengthen and improve self-regulatory supervision and enforce supervision work's deterrence and efficiency. In view of equity division reform, debt clearing, internal governance and information disclosure of listed companies, the SSE should promote standardized operation and improve the quality. As for member companies, in view of innovative securities products like securities trading business and warrants, the SSE should actively carry out market services and window guidance, urging members to protect themselves from risks, conduct standard operation and safeguard client's interests.
Fourthly, the SSE should carry out legal system publicity and research and create legal environment contributing to investors' rights and interests protection. As to legal system publicity, the SSE, according to the unified deployment of the CSRC, has worked out the "Fifth 'Five-year Plan on Legal Popularization'" and established the leader team of the "Plan on Legal Popularization", improving the organization and leadership of legal popularization. As to legal system research, the SSE has successively introduced nearly 50 subjects on securities law in 4 phases through the "SSE Series of Joint Research Plan on Law".
Fifthly, the SSE should do more work on investors' orientation and improve rational investment and risk protection. Through practice over several years, the investors' orientation is increasingly systematic and specialized. The SSE explored effective measures. For example, it took a lead in establishing the Investor Orientation Service and built a widely covered orientation platform for investors. Meanwhile, the SSE adjusted in time according to actual situations, enriched investors' orientation contents, methods and ways and set up the special "Public Consultation Service Hotline".
According to Xu, investors' rights and interests protection is a permanent theme in securities market and also a long-term, fundamental and difficult task. To promote comprehensive, coordinate and sustainable development of the securities market, the SSE will continue to implement the principle of investors' rights and interests protection in exchange's legal system construction, market supervision, legal system publicity and investors' orientation.
