At a recent forum in Beijing, Cheng Hehong, the Chief Counsel of the China Securities Regulatory Commission (CSRC), emphasized the importance of collaboration among various stakeholders to enhance investor protection and promote high-quality development in the capital market. The remarks were made during the main session of the 2024 Financial Street Forum focused on deepening reforms in the capital markets.
Cheng underscored that investors are the foundation of the market. In today’s capital market system, the rights of investors—whether they benefit or suffer losses—are closely linked to the activities of various market participants, including securities issuers, listed companies, and entities involved in securities and futures operations.
He stated that securities issuers must adhere to principles of honesty and integrity, as this is the critical first step in safeguarding investor rights within capital market activities. Cheng highlighted the role of listed companies in providing tangible returns to solidify the market foundation for protecting investors. Additionally, he urged securities firms to operate within the law and offer high-quality market services aimed at safeguarding investor rights. Fund managers in the securities and futures markets must prioritize the best interests of investors, rigorously upholding their fiduciary duties. Meanwhile, market intermediaries, such as sponsors, certified public accountants, and securities lawyers, are tasked with being vigilant guardians of investor rights. Cheng also pointed out that investors share responsibilities among themselves to uphold fairness and integrity in trading, emphasizing that market manipulation and insider trading that harm other investors’ rights are unacceptable.
Moreover, Cheng stressed that securities and futures market institutions must take their responsibilities seriously by addressing investor complaints effectively, especially those submitted through the 12386 service platform or other channels. He called for a commitment to resolve issues substantively and to mitigate disputes, ensuring that the protection of investor interests is realized in practice.
He concluded by asserting that improving the service level for investors and upholding their legal rights are essential for the overall health and long-term growth of the capital market. Cheng argued that by regulating the activities of the mentioned entities in accordance with the law and empowering them to play an active role, it will be possible to proactively address issues and strengthen legal protections for all investors, particularly small and medium-sized ones.
