Shenzhen Stock Exchange Launched On-line Law Consultation And Solicitation For Suggestions On Rules On December 4th, National Law Publicity Day


Upon the advent of 13th ‘December 4th’ National Law Publicity Day, Shenzhen Stock Exchange (SZSE), China Securities Depository and Clearing Corporation Limited Shenzhen Branch, Shenzhen Securities Information Co., Ltd. jointly launched an annual online law consultation with the theme ‘To Protect the Legal Rights and Interests of Small and Medium Investors, to Build Simplified and Transparent Business Rules and Regulation System’. Unlike activities of the previous years, SZSE takes the advantage of online interaction platform of for not only law and rule consultation service, but also solicitation for advice and suggestions on business rules from the market bodies. SZSE, which based on the market and open for market suggestions, emphasizes the scientific nature and democracy of rules formulation in the process of promoting rule system development.

A relevant principal from SZSE expressed that protecting investors’ legal rights and interests, especially small and medium investors’, was SZSE’s mission. Under the leadership and guidance of China Securities Regulatory Commission, SZSE will deepen the protection of small and medium investors rights and interests centering on the following 6 aspects: Firstly, SZSE, footing on the experience of frontline supervision and service and education, will energetically take on the amendment to Law of Securities so as to push the development of multi-layer capital market onto a ‘rule-of-law-oriented, market-oriented and internationalized’ track with speed and order. Secondly, SZSE will optimize self-discipline supervision law enforcement mechanism, intensify its law enforcement, reinforce the afterwards accountability, and severely punish law violation and breach of commitment behaviors. Thirdly, SZSE will continue to improve the function of service platforms such as ‘Easy IR’, enhance the overall information disclosure express business, endeavor to reduce the information asymmetry, and safeguard the small and medium investors’ right to know. Fourthly, SZSE will optimize the system supply, and provide more flexible environment and condition for small and medium investors to participate in the corporate government before and during the event. Fifthly, SZSE will build a sound market-oriented compensation system, which is ‘investors are first compensated by the sponsor who later claim compensation from listed companies that are responsible for the loss’. This is a probe for a more efficient remedy way for small and medium investors. Sixthly, SZSE will launch law and regulation dissemination and training education activities in a persistent way. This is an effort to enhance the small and medium investors’ rick awareness and law compliance awareness and self-protection capability.

Meanwhile, along with law consultation activities, rule and regulation opinion solicitation was carried out via questionnaire investigation, ‘semi-annual appraisal’, ‘calling easy’ platform. Upon the requirement of ‘open-door activity’, ‘open-door legislation’, the solicitation is another important content of SZSE’s enforcement of the Party’s mass line education guidance. The solicitation is question-driven, question-oriented, people-oriented, driving the regulation towards simpler and more efficient, more understandable and quality–oriented system.

As introduced by relevant principal from SZSE, during the 2-hour interaction, law dissemination team have answered 260 hot-spot questions from investors, listed companies, securities companies, fund companies and other market main bodies. The questions cover areas such as links of securities transaction, SZSE’s products and services, and standard operation of listed company, etc..

Furthermore, the principal pointed out that, 50 advices and suggestions have been solicited during the activity. These solicited suggestions involves with information disclosure, corporate government, trading system, procedures refinement, and simplification, openness and updated speed of rules and regulation. SZSE will further systematically sort out and summarize the solicited suggestions, and launch the formulation, amendment and rationalization of relevant business rules and regulations at an appropriate time in order to further lay a solid system foundation for investor protection and multi-layer capital market development.