The Shanghai Stock Exchange (SSE) has held a talkfest themed "boosting transparent regulation and guiding rational investment" for small and medium-sized investors, so as to implement the requirement of unswervingly cementing the work of investor education and strengthening investors' rational participation put forwarded by Guo Shuqing, Chairman of the China Securities Regulatory Commission (CSRC). Meanwhile, the talkfest unveiled a series of publicity activities sponsored by the SSE with the importance attached to advocating rational investment and strengthening protection for investors.
Representatives of domestic small and medium-sized investors as well as those of relevant securities companies and media, a total of over 20 people, entered the SSE to visit the trading floor and compare notes with the SSE's major regulation business departments. An SSE official delivered a speech at the talkfest.
After singing high praise for the talkfest, all the attendees held that the talkfest's theme, "transparent regulation and rational investment", was of realistic significance. The investors told their experiences and gave some advice in light of the irrational investment in the domestic securities market, such as frequent buy and sale, aimless purchase on the upswing and sale on the downswing, taking in inside information, and blind pursuit of shares with high prices, P/E ratios and risks.
An SSE official said that after putting into practice, small and medium-sized investors had always been hurt due to their irrational investment. Special efforts should be made to guide rational investment in the current securities market because: (1) the interests of small and medium-sized investors could be better protected by guiding rational investment as they are the main participants in the domestic securities market; (2) in addition to the more complex trading in the securities market, such as the successive launch of margin trading and securities lending, stock index futures and other new businesses, the enhanced integration of the domestic and overseas markets has put forward new requirements to rational investment; (3) a more solid foundation will be paved for rational investment which will gradually show its advantages as the regulation on the securities market is being improved. For instance, the regulatory authority is actively urging listed companies to reward their investors by dividend distribution and in other ways and guiding long-term funds to invest in the market. The SSE official added that the fostering of rational investment culture calls for the efforts of all the market participants. The regulatory authorities and self-regulatory organizations should further create a sound market in which rational investment is encouraged, while the market service institutions including member companies should continue to improve their customer services. Moreover, investors should erect correct investment philosophies and the media should give full play to its role in publicizing rational investment.
At the talkfest, the SSE's relevant departments respectively introduced the regulation on listed companies, trading and members as well as investor education and exchanged with investors, deepening mutual understanding and removing some misunderstandings. In their speeches, the investors' representatives frankly gave suggestions on the growth of the capital market, including strictly controlling new shares' prices, encouraging listed companies to reward their investors, intensifying the listed companies' investor relationship management, and enriching the content and forms of investor education. Furthermore, they hoped that relevant organs would initiate more activities of this kind. The SSE staff patiently and carefully answered all the questions raised by the investors' representatives.
According to sources, the SSE has been guiding rational investment in recent years, in a bid to better serve and protect investors in the following aspects: (1) some business rules, such as the "Guidance for Real-time Supervision on Abnormal Securities Trading", the "Detailed Rules on Members' Management of Clients' Securities Trading", the "Code of Conduct for Individual Investors" and the "Guidance of Investor Suitability Management in Bond Market" have been worked out to guide and supervise the legal trading of investors; (2) the SSE has cracked down on some serious law-breakings harming investors' interests, such as new shares speculation, scalping and insider dealing, while establishing a joint regulatory system of the abnormal fluctuations caused by mergers and acquisitions by collaborating with many of its departments as well as the CSRC's relevant departments; (3) an online investors' school characterized by a combination of courses, videos and tests has been built in addition to the improvement of the online voting system of shareholders' meetings of listed companies and the launch of the hotline and E-mail for the public inquiries.
According to an SSE official, the SSE will in future enhance its service consciousness and improve its work style to drive the information disclosure and transparent operation, cement the exchange with the market, and upgrade the transparency of its self-regulatory management. Furthermore, it will consolidate the basis for building a sound capital market by positively providing the investor-oriented education, service and protection in a broader approach as well as jointly fueling the cultivation of the rational investment culture in a series of activities such as the release of media articles, the spreading of TV documentaries and the launch of business training classes according to the unified deployment of the CSRC Investor Protection Bureau.
FTSE Mondo Visione Exchanges Index:
Shanghai Stock Exchange Holds Talkfest For Small, Medium-Sized Investors
Date 14/02/2012