China's Stock Market Has A Long Way To Go According To Law.

October 20th is the date of the fourth Plenary Session of the 18th CPC Central Committee. According to the arrangement, the main agenda of this conference is to study comprehensively promoting the rule of law. Because of this, the conference has also been greatly concerned by the stock market, because in China's stock market and the rule of law, the rule of law is to manage the market according to law.

For China's stock market, the problem of "rule by law" is very prominent. It is obviously a big weakness in China's stock market. Although the Chinese stock market does not lack relevant laws and regulations, such as the securities law, the company law and the criminal law, all the relevant conditions related to the stock market are weak, especially a "Securities Law" called "tofu law".

The most obvious point is the connivance of the securities act to fraud listing. Fraud is the biggest sin of the stock market. However, in the investigation of fraud listing, the 189th provision of the securities law stipulates that the issuer does not meet the issuing conditions, deceives the issuance approval by cheating, and fines the amount of not more than three hundred thousand yuan or less than six hundred thousand yuan before issuing the securities. The issue of securities has been fined one percent or more than five percent of the illegally raised funds. The persons directly in charge and other persons directly responsible shall be fined not less than thirty thousand yuan or less than three hundred thousand yuan. According to the regulation, fraud listing is only a fine of more than one percent or less of the amount of illegally raised funds, which is even lower than the one year loan interest rate of the bank. This is not a punishment, but rather a harboring and connivance.

And this kind of minor punishment of illegal activities exists almost in every clause of the securities law, whether it is illegal manipulation of stock price manipulation or insider trading, or information disclosure violation. The punishment imposed by the securities law is usually "point to stop". Although some articles can be punished according to the "top penalty", they are usually released by law enforcement officials in the process of law enforcement. Even the supervision and enforcement of the A share market is nothing more than "lifting the whip and falling down lightly".

The reason for this is that the establishment of China's stock market initially served to relieve the poor of state-owned enterprises. Therefore, the positioning of the market is to encircling the money market, which is to serve the financiers. The purpose of setting up the stock market is to dig out the purse of investors to serve the state-owned enterprises. Because of this, the formulation of relevant policies and regulations is naturally biased towards the financiers. It is not only a lighter punishment for the illegal behavior of the financiers, even if it is an intermediary agency serving the financiers, nor will it be severely punished. Correspondingly, yes. Investor The protection is basically the same. Although China's stock market has been established for more than 20 years, this system has been used so far.

The problem also arises. Because for the early listing of state-owned enterprises, because executives do not hold shares, so the interests involved are not serious, so the state-owned enterprises listed on the market were bound seriously, but the overall fraud was not serious, so the laws and regulations did not appear too big. But now the stock market has developed to private enterprises and private enterprises. Once these enterprises are listed, the controlling shareholders and the original shareholders become rich overnight and become billionaires and multimillionaire. Therefore, these enterprises are very motivated to counterfeit. And because the management of these enterprises is not standardized, all kinds of illegal activities are frequent. So for the current Chinese stock market, especially to increase the intensity of the rule of law, and the first thing to do is to improve laws and regulations. This is echoed with the main agenda of studying the rule of law in the fourth Plenary Session of the 18th CPC Central Committee. I sincerely hope that the convening of the fourth Plenary Session of the 18th CPC Central Committee will further promote the process of "rule by law" in China's stock market.

But for the present equity market The rule of law is still a long way to go. After all, the Chinese stock market is still at the stage of money market, and financing is still the top priority of China's stock market, and this primary task is more urgent than ever. China capital market It not only develops main board financing and gem financing, but also develops new three boards and even multi-level capital market system to finance. And from the financing of gem, it not only reduces the access threshold for enterprises to go public, but also makes the loss of Internet enterprises and high-tech enterprises listed and financing. In such a market environment, how to implement strict laws is a very difficult problem. How can we control the "chaotic market" of China's stock market without strict laws? In the final analysis, we should see how the regulators and even the top executives can balance the interests between investors and investors. Governing the country by law is the pivot of balancing the interests of the two parties.