[oiibeats 2023] Strictly abide by the three red lines and three principles

When reporting on the 2022 case a few days ago, the China Securities Regulatory Commission once again highlighted the topic of "false market price management". Some entered into “fake cigar management” contracts with manipulation groups and provided funds to their employees. . , and securities accounts participate in the operation.

As the name "Similar Market Value Management" suggests, managers and major shareholders of listed companies use brokers, traders, money distribution intermediaries (investors), other institutions and individuals, capital, stocks, information, and other advantages to determine the company's stock price. and helps the effective manager or major shareholder to reduce the stock at a higher price in a short period of time.

In a broader sense, "Pseudomarket Value Management" is a form of market manipulation. Looking at the specific behavior of the manipulation, compared to general market manipulation, “similar market price management” has clear characteristics. , Commonly known as "joint management" This is also the most prominent feature of "false cigar management". Second, "fake market price management" sometimes includes illegal disclosure of information. To cooperate with rising stock prices, listed companies can optionally post "good" disclosures in the short term, such as project values or R&D capabilities. . It exaggerates the company and raises investor expectations of the company. After all, "pseudo market value management" often has a "commitment contract", and traders usually develop a corresponding market value management plan or memorandum.

Against this type of behavior, the Securities Supervision Department acted in a timely manner and worked closely with national security authorities to combat it and effectively clean the ecosystem of the market.

In fact, from the point of view of market price management itself, it is a solution to the problem of price and value variance and a means to improve the quality of listed companies. That is, in the context of legal and regulatory compliance, use capital market tools to reasonably improve the company's management and governance level, improve core competitiveness, and improve the quality of listed companies. Stock repurchases, mergers and acquisitions, and equity incentives are all common methods of managing market value.

But some people use it to do wrong. Like the emergence of 'pseudo market value management', the root cause is that the controlling shareholders and actual managers of listed companies do not have a strong sense of compliance with laws and regulations and do not respect the market and investors. .

In recent years, due to the promulgation and implementation of the new securities law and criminal law amendment bill (No. 11) and free channels of civil litigation, the cost of illegal market price manipulation, such as 'false price manipulation', has increased significantly. In addition to the administrative penalties imposed by the CSRC, additional criminal and civil penalties may be imposed.

Breaking the rules and regulations can see you paying a lot of money. Once again, we ask the major shareholders and managers of listed companies to strictly adhere to the "three red lines" and "three principles", understand the correct market value management method, use capital market tools in relation to compliance with laws and regulations. We enhance the quality of listed companies.