Xinhua, 07 July 2021
BEIJING, July 7 (Xinhua) — China has tightened crackdown on illegal activities in the securities market to promote the high-quality development of the country’s capital market.
Efforts to improve the securities legislation mechanism will be enhanced, and criminal punishment and market discipline will be strengthened, according to an official document jointly issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council.
The document specifies targets for upgrades of the securities law enforcement and judicial systems by 2022 and 2025, respectively. The targets include curbing the frequent occurrence of major illegal and criminal cases, and making notable advances in the transparency, standardization and credibility of the securities law enforcement and judicial systems.
Tang Xin, a professor with the School of Law at Tsinghua University, said the document will be a key factor in capital market legalization as it has set specific schedules for the formulation and revision of laws and regulations, and has provided supplementary measures to guarantee the implementation of the laws and policies.
Due to system design shortcomings and the subsequent low cost of committing a crime, it was not unusual that some listed firms have taken advantage of the loopholes to engage in illegal acts such as financial fraud, insider trading and market manipulation.