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Source title: State Council Financial Commission: Strictly punish “debt evasion” and protect investors’ legal rights
People’s Daily Online, Beijing, November 22(Reporter Li Tong) On November 21, the State Council Financial Stability and Development Committee (hereinafter referred to as the Finance Committee) held the 43rd meeting of the Finance Committee to study and regulate the development of the bond market and maintain stability of the bond market. The meeting noted that the recent rise in default cases is the result of behavioral, institutional and cyclical factors. We must adhere to the general tone of the work of seeking progress, maintaining stability, and in accordance with the principles of commercialization, rule of law, and internationalization, managing the relationship between the promotion of development and the prevention of risks, and promote the sustainable and healthy development of the bond market.
The meeting indicated that the Party Central Committee and the State Council attach great importance to the healthy and sustainable development of the capital market. The reform and opening of China’s bond market has continued to deepen, the function of serving the real economy has continued to increase, and the overall market has been operating steadily.
The meeting made it clear that the first is to improve political positions and seriously fulfill responsibilities. Financial regulatory agencies and local governments must start from the general situation, resolutely maintain the authority of the legal system, implement regulatory and territorial responsibilities, and urge the various market entities to strictly comply with their responsibilities in accordance with the requirements of the comprehensive rule of law to establish a good local financial ecology and credit environment.
The second is to maintain a “zero tolerance” attitude and maintain fairness and market order. We must strictly investigate and punish various illegal acts such as fraudulent issuance, disclosure of false information, malicious transfer of assets, misappropriation of issue funds, etc., and severely punish all kinds of “debt evasion” to protect assets. Investors’ legitimate rights and interests.
The third is to strengthen self-discipline and supervision of the industry and strengthen market restraint mechanisms. Various market entities, such as bond issuers and their shareholders, financial institutions and intermediary institutions, must strictly abide by the laws, regulations and rules of the market, adhere to professional ethics, be diligent, honest and worthy of trust and effectively prevent moral hazards.
The fourth is to strengthen coordination and cooperation between departments. Improve risk prevention, detection, early warning and elimination mechanisms, strengthen hidden risk investigation, maintain reasonable and sufficient liquidity and firmly maintain the bottom line to avoid systemic risks.
Fifth, continue to deepen the reforms. We must deepen bond market reforms, establish and improve market systems, improve market structures, and enrich products and services. It is necessary to deepen the reform of state companies and improve the quality and efficiency of operations.
