madcarsracingandcrash| The registration system is the first! Shenzhen Stock Exchange punishes relevant recommendation institutions and accounting firms: Not accepted!

Log in to Sina Finance APP to search [Xinpi] to see more evaluation levels.

Implement the "two strong and two strict"MadcarsracingandcrashUnder the registration system, the Shenzhen Stock Exchange imposed a temporary "qualification penalty" on sponsor institutions and accounting firms for the first time.

On May 14, Dahua Accounting firm, Huaxi Securities and related responsible persons were punished by Shenzhen Stock Exchange for temporarily refusing to accept documents because of Jin Tongling financial fraud case.

Recently, the new "National Nine articles" issued by the State Council clearly requires strict investigation of illegal and illegal issues such as fraudulent issuance, the construction of a comprehensive punishment and prevention system against counterfeiting in the capital market, and a serious crackdown on violations of laws and regulations in key areas such as financial fraud and the occupation of funds.

The reporter learned that the recent cases of vicious violations of laws and regulations that have been investigated and dealt with strictly and quickly have released a strong signal of "strict supervision." The CSRC and the Stock Exchange are severely punishing the "malignant tumor" of the capital market, such as fraudulent issuance and financial fraud, by strengthening the heavy punishment of "qualification punishment", increasing the intensity of three-dimensional accountability, and strict delisting standards, so as to effectively safeguard the basis of market integrity and protect the legitimate rights and interests of investors.

Make good use of the "qualification penalty" and impose heavy punishment

As a market organizer, the types of heavy punishment of illegal subjects by the exchange mainly include publicly determining that they are not suitable to serve as directors, supervisors and senior managers of listed companies, and temporarily refusing to accept securities business and securities service business related documents issued by the exchange.

According to the regulations, after the parties have been publicly identified, they will not be allowed to hold the post of director and supervisor of the original listed company, nor shall they hold the post of director of other listed companies within the public recognition period, and the severe "qualification penalty" will effectively make the subjects of violations of the law feel painful.

Since 2021, the Shenzhen Stock Exchange has continuously stepped up the implementation of publicly determining that it is not suitable to serve as the director of listed companies, with 19, 36 and 28 person-times respectively during the three-year period. Since 2024, 23 "key minorities" of 11 companies, including Danbang and ST, have been publicly identified for three years to life.

The objects who are publicly determined to be unsuitable to serve as board supervisors of listed companies are usually the "key minority" who are mainly responsible for the company's violations, such as the controlling shareholder, the actual controller, the chairman of the board of directors and so on. At the same time, it may also include other senior board members who participate in and cooperate with them.

Take * ST Meishang, which recently attracted market attention as an example, Wang Yingyan, the real controller of the company, violated the duty of honesty and trustworthiness, abused his control position to damage the independence of the listed company, and embezzled the funds of the listed company. On June 14, 2022, the Shenzhen Stock Exchange publicly determined that she was not suitable to serve as the supervisor of the listed company for ten years. After making it clear that it bears the main responsibility for the company's financial fraud and irregularities, on April 26, 2024, the Shenzhen Stock Exchange further publicly determined that it was unfit to serve as a supervisor of a listed company for life.

For example, in January 2024, the Shenzhen Stock Exchange publicly recognized Jin Tongling and related parties and other disciplinary actions. Jin Tongling falsely increased or decreased operating income and profits in many ways, resulting in false records in the annual report from 2017 to 2022. The Shenzhen Stock Exchange publicly determined that the main person responsible for decision-making and organizing the implementation of violations was not suitable to serve as the supervisor of a listed company for ten years. It also publicly determined that other board supervisors who participated in illegal acts for five or three years were not suitable to serve as board supervisors of listed companies.

In addition to the company and related parties to take public recognition of heavy punishment, in vicious cases of dereliction of duty intermediary agencies and personnel are also difficult to escape the re-punishment of not accepting documents temporarily.

Temporary non-acceptance documents refer to the temporary non-acceptance of relevant business documents issued by professional institutions or their employees, and it is a "qualification penalty" imposed by the exchange on intermediary institutions such as sponsor underwriting, audit evaluation, and their employees, which is directly related to the practice of intermediary institutions and their employees, which is a heavy blow in punishment. The object of punishment is usually not diligent and responsible and serious circumstances, bad market impact of sponsors and accounting firms and other intermediary institutions and related personnel.

Dahua Accounting firm, as the audit institution of Jin Tongling's annual financial statements from 2017 to 2022 and the reporting accountant who issued shares to specific targets in 2020, failed to perform its duties diligently in the audit of Jin Tongling's annual financial statements from 2017 to 2022, and the audit report issued by Jin Tongling has false records. The Shenzhen Stock Exchange temporarily refused to accept the documents and publicly condemned the Dahua Institute for 6 months, and the three signed accountants were temporarily refused to accept the documents and publicly condemned for 36 or 12 months.

As a sponsor of Jin Tongling's stock issuance project to a specific target in 2020, Huaxi Securities has not done its due diligence, there are false records in the listing recommendation and other related reports, and it is not in place to continuously supervise the implementation of on-site inspection. The Shenzhen Stock Exchange temporarily refused to accept documents and publicly condemned Huaxi Securities for six months, two sponsor representatives of the project were temporarily refused to accept documents for two years and publicly condemned, and two continuous supervision sponsor representatives were notified and criticized.

Apart from the above-mentioned intermediaries and practitioners who received "qualification penalty" tickets, three other intermediaries and practitioners were subject to disciplinary action for certain irregularities during the continuous supervision or in the non-public issuance of corporate bonds. Guohai Securities, a sponsor for Jin Tongling's non-public stock offering project in 2017, Everbright Securities, an independent financial adviser to the project to purchase assets and raise matching funds in 2018, and Soochow Securities, the lead bond underwriter in 2021, as well as five relevant sponsor representatives, project organizers and other responsible personnel, were criticized and punished by the Shenzhen Stock Exchange.

Strengthen omni-directional and three-dimensional accountability

The opinions on further improving the quality of listed companies issued by the State Council clearly points out that it is necessary to promote the revision of relevant laws and regulations, increase administrative and criminal legal liability for violations of laws and regulations, such as financial fraud and the occupation of funds, improve the securities civil litigation and compensation system, and substantially increase the illegal and illegal costs of the relevant liability subjects.

Judging from a number of major and important cases investigated and dealt with by the CSRC recently, illegal acts such as fraudulent issuance and financial fraud that seriously damage the interests of investors are not retreated at once, but are resolutely cracked down on and three-dimensional accountability is strengthened. let the counterfeiters bear the price of breaking the law.

At present, China has formed a three-dimensional liability system of self-regulation, administrative punishment, civil compensation and criminal liability for the violations of laws and regulations of listed companies, which significantly increases the illegal and illegal costs of the relevant subjects and forms a strong deterrent to the market.

Taking the Amethyst storage fraud issue case as an example, on the basis of the self-regulation of the exchange, the company and the relevant responsible personnel were fined more than 8000 million yuan, and the two actual controllers were banned from the market for life and 10 years respectively; in terms of civil compensation, the intermediary paid compensation in advance.MadcarsracingandcrashMore than 690000 investors totaled 1.086 billion yuan, and four intermediary agencies paid an administrative settlement of about 189 million yuan. In terms of criminal liability, the actual controller of the company suspected of a criminal offence was arrested by the procuratorate.

Strictly cracking down on illegal acts of information disclosure such as fraudulent issuance and financial fraud in accordance with the law is an important guarantee for maintaining the order of the capital market and giving full play to the function of the capital market. The reporter learned that in the next step, the Shenzhen Stock Exchange will thoroughly implement the spirit of the Central Financial work Conference and the requirements of the new "National Nine articles", in accordance with the unified arrangements of the Securities Regulatory Commission, strictly supervise major violations in key risk areas such as financial fraud and fraudulent issuance, and resolutely use "qualification penalties" measures such as temporarily not accepting documents and identifying them as inappropriate candidates to effectively increase the cost of violations. We will severely punish the "cancer" of the capital market, such as fraudulent issuance and financial fraud.