CCTV:

We have just heard Vice Chairman Li Chao talk about the CSRC's efforts to further advance full and rigorous Party self-governance, improve Party conduct, build integrity, and fight corruption. Could you please elaborate on the important measures and work arrangements in this regard to provide critical support for the high-quality development of the capital market? Thank you.

Li Chao:

Thank you for your question. We deeply understand that the capital market is a highly regulated and transparent market, which requires an incorruptible market environment. Financial corruption not only seriously hinders the effectiveness of the capital market in serving the real economy but also seriously undermines the authority of regulatory departments and their image in society. The people, especially investors, deeply abhor this. With a deep understanding of General Secretary Xi Jinping's important thoughts on the Party's self-reform, the CPC committee of the CSRC and the discipline inspection and supervision group stationed at the CSRC fully implement the spirit of the Third Plenary Session of the 20th CPC Central Commission for Discipline Inspection and continue to advance efforts in exercising full and rigorous Party self-governance, improving Party conduct, building integrity, and fighting corruption. A systematic approach is adopted, focusing on coordinated and sustained efforts to ensure officials do not have the audacity, opportunity or desire to be corrupt.

First, we have strengthened the deterrent effects towards corruption. The area of public offering review is at high risk for corruption, which the market is highly concerned about. In accordance with the unified deployment of the CPC Central Commission for Discipline Inspection and the National Supervisory Commission, the discipline inspection and supervision group stationed at the CSRC has continuously intensified its efforts and conducted a special campaign against corruption in the area of public offering review. So far, we have investigated and handled 16 typical corruption cases with those under investigation including Zeng Changhong, Wang Zongcheng, Feng Henian, Liu Ti and Cao Jian. These cases have involved CSRC officials at the director-general level, stock exchange executives, members of the public offering review committee and employees of market intermediary institutions. Through the investigation and handling of these cases, we have resolutely combated new and hidden forms of corruption in the capital market, such as abandoning regulatory responsibilities, disrupting regulatory order, creating financial risks and infringing on the rights and interests of small and medium-sized investors. 

Second, we have improved the mechanisms for reducing corruption opportunities by making relevant institutions tighter and stricter. Reducing corruption opportunities relies primarily on institutions. In accordance with the opinions of the discipline inspection and supervision group stationed at the CSRC on "promoting better practices through cases," "promoting good governance through cases," and urging stricter supervision, and in view of the new characteristics of corrupt behaviors reflected in the cases, such as "equity corruption" and "shadow shareholders," we have improved the regulatory system from multiple dimensions, including strengthening institutional supply and enhancing penetrative supervision. To adapt to the characteristics of power exercise after full implementation of the registration-based IPO system, we have focused on key powers such as policymaking, administrative approval, regulatory law enforcement, punishment and accountability to improve institutions and mechanisms and strengthen supervision and restraints on the exercise of public power. We have enhanced the transparency of supervision in a bid to promote supervision and standardization through openness and worked to eliminate the space for power rent-seeking from the source. We have implemented the central government's deployment on investigating both bribe taking and giving, and established a comprehensive mechanism for punishing bribe givers in the capital market to strengthen the deterrent effect of one-time bribe giving leading to restrictions everywhere.

Third, we enhanced the awareness of officials to not have the desire of corruption. The key lies in voluntary self-discipline. Every time the Disciplinary Inspection and Supervision Team stationed at the CSRC investigates a case, it conducts an in-depth analysis of the case's characteristics and specially produces a warning video for education. We worked together with the team and carried out warning education on a regular and comprehensive basis to deepen the use of cases to promote reform. In 2023, we collaborated with the team to build the first regular integrity education base in the CSRC system, and organized all cadres to receive on-site education by stages and in groups. Transparency is the best way to fight against corruption. We warmly welcome supervision from all parties in the market and all sectors of society. At the same time, we will always keep a clear mind, persist in fighting corruption, and get used to working under supervision of different parties.

Going forward, the CSRC Party Committee will work with the Disciplinary Inspection and Supervision Team stationed at the CSRC to effectively shoulder the political and primary responsibilities to conduct thorough and strict Party self-governance, improve Party conduct and build integrity, and prevent corruption, ensuring that Party self-governance becomes stricter, tougher and more effective. Thank you.