SZSE Takes Investor-first Measures to Enhance Investor Protection Effectiveness

date: 2018-1-30

In 2017, SZSE has thoroughly studied the guiding principles of the 19th CPC National Congress and earnestly implemented the CPC and the state¡¯s policies and the CSRC Party Committee¡¯s decisions and deployment. Upholding the ¡°investor-centered¡± development philosophy, SZSE has stay committed to its original aspiration and mission and actively explored and innovated in the content and approaches of investor education, constantly improving the effectiveness of protecting investors¡¯ legitimate rights and interests.


New breakthroughs made in investor services by creating a fair and rational market environment


A systematic and professional project, investor services require the collective force of all parties to complement each other¡¯s advantages and securely build a ¡°protection net.¡±


In 2017, SZSE worked with China Securities Investor Services Center, the local securities regulation bureaus of Anhui, Guizhou and Chongqing, and other units to hold events such as ¡°Investor Services Week¡± and ¡°Investor Services Western Campaign.¡± Through building consensus, integrating resources and fully employ each other¡¯s edge, these events have delivered the achievements of resources sharing and functional complementation. The featured events attracted more than 2,500 investors to participate, effectively helping improve their risk awareness and investing capability and practically serving the areas short of investor education. This, accordingly, helps further the stable and healthy development of capital market in center and western China, which will better serve the real economy development in the regions.


After the commissioning of Shenzhen-Hong Kong Stock Connect, SZSE, confronted with the two-way open new market environment in the capital market, has taken initiatives in reaching cooperation consensus on investor education and establishing an investor education cooperation mechanism with Hong Kong Exchanges. Since the year of 2017, SZSE and HKEX have together organized many investor education events dedicated to SZ-HK Stock Connect, such as ¡°Getting Inside Securities Brokers¡¯ Business Department¡± and ¡°Getting Inside the SZ-HK Stock Connect Companies.¡± These events offered investors a field trip to investigate the listed units of Hong Kong Stock Connect under SZ-HK Stock Connect and explained the features of Hong Kong stock market, thus helping investors understand the HKEX-listed companies and the rules and difference of SZSE and HKEX markets and better establish risk prevention awareness.


SZSE has always been committed to building convenient, fair and smooth communication channels to connect investors and listed companies. In 2017, the function of ¡°Company Interview¡± was introduced in Easy IR, expanding the ways of communicating with listed companies for investors and upgrading the ¡°one-to-one¡± communication model to the ¡°one-to-many.¡± By the end of 2017, the investors¡¯ questions raised on Easy IR amounted to 2.35 million pieces, the effective reply rate by listed companies 97%, and the whole-year visits 920 million times. Moreover, the mobile APP users of Easy IR doubled as compared with that in 2016, indicating practical implementation of the ¡°communication, mutual trust and transparency¡± concept in investor services and laying a solid foundation for building a benign capital market ecology.


In addition, SZSE has kept developing the three theme events of investor education, that is, ¡°Getting Inside Listed Companies¡±, ¡°Getting Inside Securities Brokers¡¯ Business Department¡± and ¡°Getting Inside SZSE.¡± Cumulatively, in five years SZSE has led about 12,000 minority investors to visit 209 SZSE-listed companies, building a bridge of exchange and communication between minority investors and listed companies.


New progress achieved by improving national capital culture literacy


Improving investor education is a requirement for enhancing the basis of investor education in capital market. In recent years, SZSE has constantly intensified efforts in developing investor education products, enriched the content and means of those products and relied on investor education bases to assist investors in lifting their self-protection awareness and risk prevention ability.


In 2017, SZSE successfully applied for a national Internet investor education base, thus becoming the only unit featuring both a physical entity and an online education base in the system. As a comprehensive investor education web, the base has the columns of hot-line QA, risk education, securities academy and rules interpretation etc., providing investors with convenient, professional and all-round education info service and satisfying investors¡¯ different needs. Furthermore, SZSE has kept enriching the content of display at the physical education base and actively expanding the base coverage and influence to provide investors with an all-round and balanced education place. Since 2017, a total of 606 visits were held at the base, serving 13,422 person-times and broadly acclaimed by investors.


In terms of the form of investor education products, apart from making 213 traditional education products, SZSE has exerted greater efforts in innovation, creating innovated products like the cartoon ¡°The Three Kingdoms in Stock Market¡± and the Q&A ¡°Daxiaoshuo.¡± With regard to content, SZSE has closely followed market hot-spots and risk points and developed special publicity campaigns by centering on the themes such as ¡°know the rules to identify risks¡±, ¡°new rules on investor adequacy¡±, and ¡°investor education on delisting.¡± As to the channels of communication, SZSE has vigorously expanded the coverage, influence and penetration of investor education publicity. Currently, more and more ¡°cultural¡± and interesting products are launched,, which efficiently helps improve investors¡¯ professional knowledge and truly plays a role in facilitating the cultivation of a mature and rational investor team and improving national capital culture literacy.


New achievements highlighted by implementing the investor protection philosophy throughout delisting


In 2017, under the unified deployment and guidance of CSRC, Century Plaza Hotel and Xintai Electric were successively delisted. In the delisting-related work, SZSE reinforced its responsibilities and took multiple measures to safeguard investors¡¯ legitimate rights and interests.


SZSE practically performed its non-delegable duty in the work of delisting and effectively put into place investor protection measures. Specifically, the tasks on risk warning and information disclosure were intensified to maintain investors¡¯ right to know information. Sales restriction measures were imposed on interested responsible bodies¡¯ accounts to prevent the said entities from avoiding legal responsibilities by transferring shares in advance and protect minority investors¡¯ rights and interests. Strict accounting audit regulation was implemented to safeguard the seriousness of delisting systems. Investors¡¯ appeals were properly handled to closely follow up relevant development and address conflicts and disputes from the source. Investor education on delisting was enhanced to guide investors correctly and objectively look at the delisting of listed companies. Cooperation with the system units was developed to form a joint force of investor protection during delisting and practice the protection philosophy throughout delisting. During delisting, the stock transactions of Century Plaza Hotel and Xintai Electric were rational on the whole and the whole delisting process was stable and in order.


One essential part in consolidating the basic systems of capital market is to smooth the channel for investors to express appeals and seek rights relief. In the case of Xintai Electric¡¯s fraud issuance, Industrial Securities, as the sponsor, established a special fund to compensate investors¡¯ losses. During that process, SZSE actively push forward the implementation of the advance compensation project for Xintai Electric investors through intimate cooperation with interested units on repeatedly weighing and precisely calculating the compensation plan and via meticulous preparation and deployment in the implementation stage, thus ensuring the smooth development of the whole compensation process. At last, 11,727 investors acquired compensation through settlement, accounting for 95.2% of the eligible investors, and the compensation amount was CNY240 million, taking up 99.6% of the total, which securely protected investors¡¯ rights for compensation relief.


An SZSE principal expressed that the new era has presented new tasks, new objectives and new requirements in capital market construction. In 2018, with the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and as per CSRC¡¯s unified deployment, SZSE will continue to uphold the people-first development philosophy and orient with investors¡¯ needs to earnestly explore new was of work, constantly improve mechanisms, services and products, steadily elevate its minority investor service level and practically protect minority investors¡¯ legitimate rights and interests, powering a new course in investor protection and education.