Sponsored by the Shanghai Stock Exchange (SSE) and jointly organized by Peking University, Renmin University of China and East China University of Political Science and Law, the 3rd SSE Legal Forum themed "Integrity and Legal Construction of Capital Market" was unveiled in Shanghai on December 8. Chairman Guo Shuqing of the China Securities Regulatory Commission (CSRC), Vice President Xi Xiaoming of the Supreme People's Court of China, Deputy Director An Jian of the Legislative Affairs Office of the State Council, Deputy Mayor Tu Guangshao of the Shanghai Municipal People's Government, and SSE Governor Gui Minjie delivered speeches respectively at the forum with over 80 attendees composed of experts and scholars from legislative, judicial and law enforcement departments, colleges and universities, and research institutions as well as market professionals. CSRC Chairman Guo Shuqing made some points at the forum. According to him, in the process of the reform and development of the capital market, we should always apply the rule-of-law approach to the regulation on markets and the guidance for expectations, and carry out the work in key links based on the basic requirements of legal and integrity construction. In particular, we should give priority to systems and push forward reform and innovation by law. Besides, we should practice strict law enforcement and maintain a market order in a legal way. Moreover, we should take disciplinary action against law-breakers, and guide and safeguard integrity and law-abiding conduct with systems and mechanism. Furthermore, we should promote law-based administration, and restrain regulatory power with legal norm. Chairman Guo said that the rule-of-law approach was good for rationalizing the use of power, promoting fair competition, boosting market innovation and stabilizing market expectation and confidence. To advance the reform and development of the capital market in new historical conditions, we need to give fuller play to the role of rule of law, and attach more importance to legal construction. Guo stressed that we needed to strengthen the study and research on securities legal systems, perfect the basic legal systems of the capital market, toughen the law enforcement on rule-breaking behaviors, reinforce the restraint and punishment on market participants, deepen the reform in law enforcement systems of the capital market, probe into the innovation in administrative reconciliation law enforcement mode, accelerate the improvement of civil compensation system for securities infringements, and implement the requirements of law-based affair-handling and administration. Vice President Xi Xiaoming of the Supreme People's Court of China pointed out in his speech that the people's court would help to rationalize and guide the capital market mainly by formulating relevant judicial interpretations and policies, hearing kinds of cases related to the capital market, settling various contradictions and disputes, punishing various illegal and criminal behaviors, and supporting regulatory departments for law-based administration and protection of legal rights and interests of administrative counterparts. According to Xi Xiaoming, the people's court will keep on providing powerful judicial services and guarantees for the development and integrity construction of the capital market. In the next period to come, the judicial organs will make efforts to improve the civil legal liability system and the criminal liability accountability system for the capital market, rationalize the investigation and control mechanism for frightening law-breakers and promoting integrity, and establish judicial teams and organizations meeting market demands. Deputy Director An Jian of the Legislative Affairs Office of the State Council said that the eternal theme of the capital market was to advocate, abide by and uphold integrity. According to him, the elimination of dishonest behaviors in the capital market asks for rule of law, which is the fundamental and long-term approach, and regulation as well as the self-awareness and self-discipline of the market participants. It is always the main and central part of securities legislation to set up the integrity rule in securities-related activities. Concerning the major problems involving integrity in the capital market, it is necessary to further probe into what to be improved and revised regarding integrity in the capital market in existing securities-related laws and regulations. Deputy Mayor Tu Guangshao of the Shanghai Municipal People's Government said that top priority should be given to creating an environment for rule of law and integrity in every part of the construction of the Shanghai International Financial Center. In recent years, Shanghai has made much progress in the integrity and legal construction of the financial market by issuing a series of local regulations, establishing some effective coordination mechanisms and professional judicial structures, and advancing the construction of the social credit system. In future, the city will strive to create a more favorable environment for rule of law and integrity by promoting financial innovation, protecting legal rights and interests of investors and financial consumers, preventing financial risks, safeguarding financial stability, and strengthening self-regulation. SSE Governor Gui Minjie also stressed that the scientific development of the capital market called for rationalized rule-of-law guarantee especially. The experience in the over-20-year capital market shows that the progress and development of the market is closely related to the rationalization and improvement of the legal construction in the market. The legal construction will show its increasing effect with the passage of time as it develops from an indirect and explicit way to a direct and implicit way. In other words, the legal construction will bring more positive effects with the gradual improvement in a long-term and stable approach. Therefore, the legal construction of the capital market requires long-term effort and perseverance. Gui Minjie said that the SSE would meet the market demands for development and change by perfecting business rules, implementing legal systems of the capital market, strengthening the publicity of legal systems and improving its work in a legal, rationalized and transparent approach. Firstly, the exchange should satisfy the market needs for development and change by perfecting its rule systems. Secondly, the exchange should earnestly fulfill its duties and strictly implement legal systems of the capital market. Thirdly, the exchange should strengthen the publicity of legal systems for raising the legal awareness of market participants. Fourthly, the exchange should handle affairs by law and promote rule of law in its work. When presiding over the forum, SSE President Huang Hongyuan said that the SSE was pushing forward the reform and innovation and speeding up the market construction for the purpose of better serving the real economy. In this process, the exchange will continue to abide by the rule-of-law principle and adopt the rule-of-law approach for promoting the market development. In the part of keynote speeches, Professor Wu Zhipan of Peking University, Professor Wang Baoshu of Tsinghua University, Professor Guo Feng of Central University of Finance and Economics, Professor Gu Gongyun of East China University of Political Science and Law, SSE Vice President Xu Ming and other famous legal experts delivered wonderful keynote speeches respectively. Xu Ming held that innovation had become the theme of the development of the Chinese capital market in the new period. In future, the innovation in the capital market can be pushed forward in terms of market system, market variety, market transaction, market regulation and market legal system. In particular, the innovation in the capital market asks for the support of integrity so emphasis should be laid on the establishment of a detailed information disclosure system, a good market regulatory system and a strict accountability system. In the part of special topic discussion, experts, scholars and market professionals from securities companies, fund management companies, listed companies, law firms and accounting firms present at the forum had a heated and fruitful discussion. The experts present at the forum said that concerted efforts of legislative, law enforcement and judicial authorities were needed for further advancing the integrity and legal construction of the capital market. To be specific, legislative authorities, in accordance with new characteristics of the market development, should put the revision of the Securities Law on the agenda to further give legal support for guiding law-abiding conduct and integrity and punishing illegal and dishonest behaviors. Besides, law enforcement authorities can draw on the experience of foreign regulatory authorities for reference in taking such measures as freezing of raised funds, heavy fine and punishment on sponsor against the rule-breakers for listing through fraudulence and packaging. In addition, judicial authorities are advised to accelerate the revision and improvement of judicial interpretations on civil compensation for securities infringements, and rationalize the system for civil compensation for securities infringements. According to sources, the SSE Legal Forum, founded in 2010, has been held for three years in a row. It has played an active role in deepening the legal research on the capital market, strengthening the interaction between theory and practice, and promoting the legal construction of the capital market. Developed with the forum at the same time, On Securities Law, a collection of over 200 excellent papers on securities-based rule of law, has been published by the Law Press in the form of 11 issues in 7 volumes. |
FTSE Mondo Visione Exchanges Index:
3rd Shanghai Stock Exchange Legal Forum Unveiled In Shanghai
Date 13/12/2012