SZSE and SSE Jointly Hold the 2018 International Seminar on First-line Supervision of Stock Exchanges

date: 2018-9-25

SZSE and SSE jointly held the 2018 International Seminar on First-line Supervision of Stock Exchanges, themed with "the foundation construction for front-line supervision", in SZSE on September 21. The seminar was to further promote the comprehensive and stringent law-based supervision, give full play to the front-line supervision function of stock exchanges, and promote exchanges and cooperation between domestic and foreign exchanges. Li Chao, Vice Vhairman of the China Securities Regulatory Commission (CSRC), attended the meeting and delivered a speech.


Li pointed out that as the current world economy is still in the process of differentiation and adjustment, the global capital market faces a complicated development environment. Accordingly, all parties involved should care about the market and maintain the market. At the seminar last year, we’d reached a broad consensus on strengthening the front-line supervision of exchanges. Despite the differences in the development status, market structure and regulatory system of capital markets in various countries, there is a general emphasis on the first-line supervision. As the old Chinese saying goes, "a nine-story platform starts from the foundation". The front-line regulators must constantly adapt to changes in the situation, improve supervision, and consolidate the foundation. Since last year, CSRC has taken a series of measures to strengthen the front-line supervision foundation construction. First, to promote the see-through supervision to promote the implementation of the northbound trading penetration mechanism for the Shanghai/Shenzhen-Hong Kong Stock Connect program so as to achieve the connection between the see-through supervision and indirect holding system. Second, to strengthen exchange members' management of customer transaction behaviors and to urge the members to implement their customer management responsibilities so as to build a solid first defending line. Third, to speed up the scientific and technological construction for supervision so as to fully use technical means to monitor market risks and accurately crack down violations. Only by firmly pushing forward reform and opening up can the capital market be full of vitality. In line with marketization, legalization, and internationalization, CSRC will continue to push forward the reform and opening up of the capital market, expand domestic and foreign cooperation, and promote the healthy development of the capital market.


At the seminar, exchanges discussed in depth how to better play the role of front-line supervision and introduced their experiences on improving the see-through supervision system, playing the role of members in transaction supervision, and promoting scientific and technological supervision. The participating exchanges believe that the rapidly developing market situation puts forward higher requirements on the front-line supervision ability of exchanges, so strengthening the foundation construction is of great practical significance for improving the front-line supervision function of exchanges. They also think that it is urgent and essential to analyze and discuss see-through supervision, member supervision, and scientific and technological supervision as an organic whole. The see-through supervision is an important means to conform to the development trend of securities market supervision. As a result, it is necessary to give full play to the role of members so as to form a joint supervision force with the exchanges. At present, the development of cutting-edge technologies such as big data, cloud computing, machine learning, and AI is on the rise. Exchanges should pay more attention to and embrace technological innovations so as to improve the ability to supervise scientifically and technologically, enrich scientific and technological supervision means, and strengthen information sharing and cross-border supervision cooperation. In this way, exchanges can jointly prevent and resolve market risks, maintain market fairness, efficiency and transparency, and protect the legitimate rights and interests of investors.


Next, SZSE and SSE will continue to fulfill their first-line supervision duties, increase investment in supervision foundation construction, strengthen systematic research on regulatory frontier issues, and draw on the successful experience and advanced practices of various exchanges so that they will further improve the supervision system, better supervision ability, enhance supervision effectiveness, and optimize supervision cooperation mechanisms. In this way, they will earnestly maintain stable market operations so as to provide a favorable market environment for domestic and foreign investors to participate in the Chinese capital market.


Representatives from CSRC and World Federation of Exchanges, and relevant leaders of Shenzhen municipal government and relevant departments and agencies attended the meeting. Representatives from a total of 11 exchanges, namely, SZSE, SSE, Bombay Stock Exchange, Bursa Malaysia, Deutsche B?rse, Euronext, Hong Kong Exchanges and Clearing Limited, Korea Exchange, London Stock Exchange, Luxembourg Stock Exchange, and NASDAQ, also attended the seminar and exchanged views.