Upholding Our Original Aspirations, Embracing Our Mission, and Delivering Concrete Actions—Yan Qingmin, Vice Chairman, Delivers a Speech at the 2021 “May 15 National Investor Protection Public Awareness Day” Event.

Dear Chairman Yi Huiman and Vice President Jiang Wei,

　　Distinguished guests and friends:

　　Good morning, everyone! The annual National Investor Protection Awareness Day has become an important platform for promoting capital market knowledge across society, strengthening investors’ awareness of protection, and fostering a culture of rational investing. On behalf of the China Securities Regulatory Commission, I would like to extend our heartfelt gratitude to all leaders and friends from various sectors who have consistently shown concern and support for the reform and development of the capital market as well as investor protection efforts!

　　This year marks the 100th anniversary of the founding of the Communist Party of China and also the inaugural year of the 14th Five-Year Plan. Against this backdrop, we have chosen the theme for this year’s “May 15 National Investor Protection Public Awareness Day” as “Keeping Investors at Heart, Acting Together—Staying True to Our Original Aspirations and Fulfilling Our Mission by Doing Concrete Things for Investors.” In particular, we have launched the investor protection publicity campaign titled “Retracing the Centennial Journey: A Red Education Tour for Investors,” which takes the study and education on Party history as an opportunity to further put our original aspirations and mission into practice, earnestly deliver tangible benefits to investors, and continuously enhance our ability and effectiveness in serving them.

　　Distinguished guests and friends,

　　China’s capital market boasts the world’s largest and most active investor base. As of now, the number of A-share investors has exceeded 180 million. Upholding the people-centered stance in capital market regulation and effectively safeguarding the legitimate rights and interests of the broad investor base are intrinsic requirements for the capital market to stay true to its original aspirations and mission. At present, in order to build a capital market that is standardized, transparent, open, vibrant, and resilient, the China Securities Regulatory Commission (CSRC) is earnestly implementing the guiding principle of “establishing sound systems, exercising non-interference, and maintaining zero tolerance.” It is deeply advancing a new round of comprehensive and deepened capital market reforms centered on the registration-based system reform. As a result, the capital market’s institutional framework, operational mechanisms, and cultural ethos are undergoing increasingly profound structural changes, and a market ecosystem that comprehensively strengthens investor protection is gradually taking shape. Entering a new stage of development, implementing the new development philosophy, and constructing a new development pattern all require us to firmly keep in mind the fundamental starting point and ultimate goal of serving the real economy and protecting investors. We must adhere to the direction of marketization, rule of law, and internationalization, continuously deepen capital market reforms, further enhance the capital market’s pivotal role, and promote high-quality development of the capital market, enabling investors to participate more equitably in the capital market. This is both an important mission and responsibility of the capital market in the new era, and also a concrete manifestation of putting the people at the center of development.

　　Distinguished guests and friends,

　　Over the past year, the China Securities Regulatory Commission has firmly implemented the decisions and arrangements of the Party Central Committee and the State Council, coordinating efforts to control the epidemic, deepen reform, prevent risks, and support economic and social development. We have focused on addressing a number of practical issues that are of great concern to investors, and we are working hard to create a market environment that attracts investors and encourages them to stay.

　　First, new progress has been made in the building of the rule of law. Following the implementation of the new Securities Law, the Eleventh Amendment to the Criminal Law was smoothly adopted, fundamentally reversing the situation in which the cost of securities-related violations and crimes was excessively low. Meanwhile, a guiding document on strictly enforcing the law against securities violations has been reviewed and approved by the Central Commission for Deepening Reform. The CSRC is working closely with legislative and judicial authorities to accelerate the establishment and improvement of a securities enforcement and judicial system and mechanism with Chinese characteristics. This will further enhance the effectiveness of capital market governance and solidify the legal foundation for better protecting the legitimate rights and interests of investors.

　　Second, there has been a new breakthrough in investor relief and compensation. With strong support from the Supreme People’s Court and local courts, the Judicial Interpretation on Representative Litigation in Securities Disputes has been officially released, and several cases involving ordinary representative litigation have already been adjudicated. Moreover, the first case of special representative litigation has now been successfully concluded—a landmark event in the history of capital market development. Through institutional arrangements such as the special representative mechanism, professional expertise support, and reductions or exemptions of litigation costs, investors’ costs of rights protection and litigation risks will be significantly reduced, effectively addressing the challenges of difficult and costly litigation faced by large numbers of scattered victims.

　　Third, there has been new progress in strengthening investor rights protection and building a robust returns mechanism. The “toolbox” for investor protection continues to expand: in 2020, mediation organizations handled over 6,100 mediation cases, successfully resolving more than 4,900 of them, with the total amount involved exceeding 800 million yuan. To date, over 50,000 investors have recovered their losses through various rights-protection mechanisms, including diversified dispute resolution, support for litigation, advance compensation, and model judgments. The 12386 service hotline has processed over 600,000 investor complaints cumulatively. Listed companies have been urged to increase cash dividends and share buybacks; last year, the total amount of dividends distributed by listed companies reached a record high. For six consecutive years, the "Blue Book on the State of Investor Protection in China's Capital Market" has been published, receiving widespread acclaim from all sectors of society.

　　Fourth, investor education services have achieved new successes. Since the CSRC, in collaboration with the Ministry of Education, issued the “Memorandum of Cooperation on Strengthening Public Education on Securities and Futures Knowledge,” the long-term collaborative mechanism has been smoothly implemented and has yielded remarkable results. Currently, 31 provinces, municipalities, and autonomous regions have incorporated investor education into their national education systems, and pilot programs have been launched in nearly 5,000 schools to date. Nationwide, the number of securities and futures investor education bases has exceeded 140, and the investor education service system is continuously improving.

　　Fifth, international cooperation on investor protection has yielded new achievements. In January of this year, the document titled “Global Handling of Complaints and Remedies for Small and Medium-Sized Investors,” led by the China Securities Regulatory Commission and involving regulatory authorities from 14 jurisdictions—including those following Anglo-American law—was reviewed and approved by the Board of Directors of the International Organization of Securities Commissions (IOSCO). This marks the first time that China has taken the lead in drafting an international document in the field of investor protection, fully demonstrating the international community’s recognition of the effectiveness of China’s capital market investor protection efforts. In the World Bank’s “Doing Business 2020” report, China’s indicator for “Protecting Minority Investors” improved significantly for two consecutive years, rising from 119th to 28th place.

　　Distinguished guests and friends,

　　Investor protection is a long-term, fundamental task. Moving forward, the CSRC will continue to take respecting investors, holding investors in awe, and protecting investors as the central theme of its regulatory efforts. It will effectively integrate Party history study and education with the advancement of capital market reform and development and with investor protection work. Furthermore, it will strengthen the “grand investor protection” concept, actively foster an open, fair, and just market environment, provide investors with more effective regulatory safeguards and redress channels, and genuinely enhance investors’ sense of security and satisfaction. The focus will be on achieving “four key priorities.”

　　First, we will further advance a series of capital market reform measures. We will vigorously promote the enhancement of listed companies’ quality and continue to guide these companies to genuinely reward investors through cash dividends, share repurchases, and other means. We will adhere to a “zero-tolerance” approach in cracking down on all kinds of securities-related illegal and non-compliant activities, continuously optimize the market ecosystem, and bolster investor trust and confidence. We will firmly hold intermediaries accountable, encourage various asset management institutions to strive to enhance their professional capabilities and compliance management standards, and better leverage the wealth-management functions of the capital market. We will accelerate the construction of fundamental institutional frameworks for the capital market, refine the multi-tiered market system, and provide stronger safeguards for improving the effectiveness of capital market governance and maintaining the market’s long-term healthy development.

　　Second, further refine the comprehensive supporting system. Closely focus on promoting the implementation of the new Securities Law, accelerate the formulation and revision of relevant supporting regulations and rules, and promptly improve corresponding working measures and standards. At an appropriate time, study and initiate the drafting of regulations on investor rights protection. Also, study the establishment of a special compensation fund for investor protection.

　　Third, further improve the “one-stop” rights protection mechanism. Leverage the synergistic effects of the “mechanism cluster” for investors’ exercise of rights and protection of their interests, promote the regular implementation of representative lawsuits by investor protection institutions, and fully harness the role of investor protection tools. Put into practice the “Fengqiao Experience” of the new era, and enhance the institutionalization and standardization of diversified resolution of securities and futures disputes. Summarize successful experiences from mechanisms such as advance compensation, enrich the pool of cases supporting litigation, disseminate beneficial practices, and provide investors with more convenient legal services.

　　Fourth, further enrich the convenient services offered under the “one-stop” framework. We will intensify the use of technological tools in investor protection efforts, make good use of the investor service hotline and operate a dedicated website for investors, gradually establish a nationwide investor database, and continue to improve online legal aid services. This will help shift investor rights protection from “offline visits” to “online processing.” We will fully leverage the advantages of investor education bases, continue promoting the integration of investor education into the national education system, provide investors with visible services, organize memorable activities, and deliver practical, actionable knowledge.

　　Distinguished guests and friends, investor protection is a systematic undertaking that requires the concerted efforts of all parties involved. We hope that legislative and judicial authorities, relevant government departments, local governments, market participants, and media colleagues will continue to pay close attention to and support investor protection efforts. We also encourage investors at large to continually enhance their awareness of self-protection and further embrace the principles of rational investing, value investing, and long-term investing. Together, let us create a healthy and sustainable ecosystem for development and drive continuous new progress in the cause of investor protection.

　　Thank you, everyone!

(Article sourced from the China Securities Regulatory Commission www.csrc.gov.cn)