The Amount Of RMB 600000 Is Not Capped, And A-Share Is Now 400 Million, And Civil Compensation Has Gradually Become An Important Part Of Securities Illegal Accountability

After the implementation of administrative punishment, the amount of civil compensation involved in St Zhongan has exceeded 400 million.

The total amount of the financial claims received by the Shanghai security company in the previous notice of financial liability was RMB 1.34 billion, which was called the total amount of RMB 1.3 billion in the financial claims filed by Shanghai Security Court.

This figure reinforces the market's new understanding of the illegal cost of securities.

"In the past, the market often paid attention to the penalty of RMB 600000 for breach of contract, and the cost of violation was low, which was not the case in fact." A few days ago, close to the regulatory layer in communication with our reporter said.

21 century economic report reporter investigation learned that before st Zhongan was pushed by many securities companies and big V, a large number of large households were locked up, which also led to high litigation amount.

There are also a number of securities companies with false statements.

For example, tianxiaxiu announced a few days ago that it was awarded 18.26 million yuan in compensation in the first instance of liability dispute of Securities False Statement. Fenghua high tech announced that 26 investors won the first instance of the false statement case, with an amount of more than 88.55 million yuan.

400 million lawsuits coming

"Once the civil compensation rules become more actionable, and the convenience of filing a case in the court is improved, especially the implementation of the group action system with Chinese characteristics, civil compensation will become an important link for the offenders to return their illegal income and increase the cost of illegal activities." A senior market person said frankly.

St Zhongan, formerly known as "old eight shares" Feile shares, was founded in 1987 and is one of the earliest listed companies in New China.

In 2014, Feile shares were restructured and Zhongan consumer was listed on the back door. After the company was renamed, its share price once reached a historical high of 46.87 yuan.

On December 24, 2016, the China Securities Regulatory Commission (CSRC) announced its decision to investigate the case. On April 29, 2017, Deloitte & Touche Tohmatsu issued a statement of audit report which could not express opinions on the 2016 financial statements of China Life Insurance Co., Ltd. On May 3, zhonganxiao stock "Daimao" was renamed as * ST Zhongan. At present, although the star has been removed, it is still specially treated by St.

On May 30, 2019, St Zhong'an received the decision on administrative punishment and the decision on market prohibition issued by China Securities Regulatory Commission (CSRC), and the CSRC confirmed that the company had illegal facts.

As for the specific violations of St Zhongan, it can be seen from the administrative punishment decision that as the party concerned in the major asset reorganization, Zhong'an consumer technology (st Zhongan subsidiary) included the "banbanbantong" project into the profit forecast, but when the project was difficult to continue to perform due to major changes, it did not provide the profit forecast report in time, resulting in its strict evaluation value And the operating income in 2013 increased by 55.15 million yuan. There are misleading statements and false records in the material assets reorganization documents disclosed by St Zhongan.

According to this, the CSRC will punish the listed company ST Zhong'an by 400000 yuan, Zhongan consumer technology ceiling by 600000 yuan, and punish the relevant responsible personnel.

In particular, the enforcement of the new securities law in March 2020 is worth paying more attention to.

At the same time, according to the appraisal report of the first value-added Asset Appraisal Company Limited, the first time, the value-added Insurance Company Limited was investigated and investigated by the first value-added asset appraisal agency.

According to the official announcement of the investment and service center in April, recently, the support lawsuit filed by the investment service center against * ST Zhongan (which has not yet been picked up at this time) has been accepted by the Shanghai financial court.

In this case, Xu Xiao (Shanghai Randi law firm), a public welfare lawyer of the investment and service center, filed a claim against the actual controller of * ST Zhongan, the largest shareholder of * ST Zhongan, Zhongan Technology Co., Ltd. and its subsidiaries, and Yinxin Asset Appraisal Co., Ltd.

This is the first time that the investment service center has listed asset appraisal institutions as defendants in securities support litigation.

The cost of breaking the law has increased

Since the implementation of the new securities law in March, Shanghai financial court, Shenzhen intermediate people's Court (hereinafter referred to as "Shenzhen intermediate people's court"), Hangzhou intermediate people's Court (hereinafter referred to as "Hangzhou intermediate court") and Nanjing Intermediate People's Court (hereinafter referred to as "Nanjing Intermediate court") have issued procedural rules for representative litigation mechanism of securities disputes.

Among them, Hangzhou intermediate people's court and Nanjing Intermediate People's court have begun to test "class action".

In March, Hangzhou intermediate people's Court issued a representative lawsuit with uncertain number of persons applicable to Wuyang bond dispute, and issued a registration notice for soliciting bond natural person investors. In May, the Nanjing Intermediate People's Court issued a notice on the litigation registration of securities dispute representatives of four listed companies, including Chengxing shares.

With the implementation of the new securities law on March 1 and the continuous promotion of relevant rules and regulations of class action, the illegal cost of listed companies is increasing significantly.

"In the litigation system of investor rights protection, the new securities law adds a new litigation representative system. Investors must have the opportunity to participate in the litigation before they can get compensation. The new system will break through the litigation principle of "no litigation, no justice". As long as investors do not "explicitly" withdraw, they will be regarded as participating in the litigation, which will greatly increase the scale of securities litigation cases and bring strong deterrent force to listed companies. " Wang Zhibin, partner of Shanghai Minglun law firm, told 21st century economic reporter.

On July 11, the 36th meeting of the financial stability and Development Committee of the State Council proposed to strengthen civil compensation and criminal accountability, speed up the implementation of the newly revised Securities Law, and timely initiate collective litigation in accordance with the law for typical cases with significant social impact.

Market participants believe that the exploration of the two courts has accumulated pilot experience for judicial interpretation drafting of the supreme law.

Before that, the Supreme People's court said that it was working on the judicial interpretation of representative litigation in securities disputes and improving the securities civil litigation system with the characteristics of the times and China. It is understood that the Securities Regulatory Commission will also issue measures for the litigation management of securities representatives, and insurance institutions also need to introduce business rules and procedures.

With the implementation of three-dimensional criminal liability, the company has gradually increased its criminal liability.

Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), said a few days ago that the administrative fine is not the most important factor in controlling financial fraud. The subsequent civil recovery and criminal punishment constitute a three-dimensional punishment system, which is more important. On the one hand, the CSRC will work closely with relevant parties to promote the implementation of the securities class action system with Chinese characteristics and give full play to the role of investor protection institutions; on the other hand, it will continue to intensify its work, promote the revision of the criminal law, and substantially increase the maximum prison term and fine standards for securities and Futures Crimes, so that offenders can bear their due responsibilities.