Editorial: Rule of Law Is the Best Protection for Investors

The securities market is intensifying its efforts in governance by law. Recently, regulatory bodies have focused on investigating illegal activity among the staff at China Merchants Securities Co. Ltd., including illicit stock transactions.

A total of 63 people received administrative penalties, with fines totaling 81.73 million yuan ($11.5 million). One person was punished with a lifetime ban from the securities market. The case of another person, suspected of insider trading, was referred to judicial authorities. Furthermore, the China Securities Regulatory Commission (CSRC) imposed administrative penalties on Shanghai SiErXin Technology Co. Ltd for fraudulent issuance activities on the Science and Technology Innovation Board. This case marks the first instance of a fraudulent issuance investigated by the CSRC after submission of application materials and before registration approval since the new “Securities Law” took effect. These actions send a clear and stern message to the securities market about strict governance.