From institutional foundation to accountability, from breaking through typical cases to improving long-term mechanisms, since the beginning of this year, investor protection in the capital market has been moving from "single point efforts" to "systematic combat". The Party Committee of the China Securities Regulatory Commission recently conveyed and implemented the spirit of the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China, clearly proposing to strengthen the construction of the rule of law in the capital market, continuously improve regulatory efficiency and the quality and effectiveness of investor rights protection. Industry insiders believe that with the continuous strengthening of the rule of law in the capital market, issues such as investor protection, effective coordination of administrative penalties and civil compensation during delisting, and promoting the improvement of special representative litigation have been put on the agenda. The long-term systematic project of investor protection mechanism will be further promoted. Recently, a series of policies and regulations have been intensively introduced to build a full chain protection system that runs through market access, continuous supervision, and exit links at the institutional level, continuously weaving a "safety net" for investor protection. On October 27th, the China Securities Regulatory Commission issued the "Several Opinions on Strengthening the Protection of Small and Medium sized Investors in the Capital Market", proposing 23 specific measures around eight aspects including strengthening the protection of small and medium-sized investors in the process of issuing and listing. Tao Shengyu, Chief Non Banking Analyst at Donghai Securities, believes that the issuance of the opinion marks a new stage of "full chain, systematic, and legal" investor protection in China, which will significantly enhance the sense of gain and security of small and medium-sized investors. On December 5th, the China Securities Regulatory Commission released the "Regulations on the Supervision and Administration of Listed Companies (Draft for Public Solicitation of Opinions)", which clearly stated the need to strengthen investor protection. Huang Jiangdong, a partner at Guohao Law Firm (Shanghai), stated that the regulations have significantly increased the severity of administrative fines, which will have a positive effect on deterring and curbing illegal activities, thereby boosting investor confidence. The relevant mechanisms related to investor protection are being further explored. The China Securities Journal reporter learned that the China Securities Regulatory Commission recently established legislative contact points and held the first legislative contact point work symposium, establishing six units including Guotai Haitong Securities as the first batch of legislative contact points. The head of the relevant department of the China Securities Regulatory Commission stated at the symposium that the establishment of legislative contact points is to broaden the channels for listening to the opinions of the market and all sectors of society, especially the opinions and suggestions of small and medium-sized investors, in the legislative work of the capital market. In the future, the China Securities Regulatory Commission will make good use of the legislative liaison mechanism in the capital market legislation work, pay attention to listening to the voices of investors and traders, collect and gather public opinion, start from practice, solve practical problems, and enhance the pertinence of legislation. Under the protection of policies to purify the market ecology, regulatory authorities have established a three-dimensional accountability system to strengthen the "high-voltage line", support victims of infringement to protect their rights in accordance with the law, make violators pay a heavy price, and gradually build a market ecology of "dare not falsify, cannot falsify, and do not want to falsify". The 'compensation effect' of civil liability continues to be released. In October, Eglas, which had already delisted from the A-share market, announced that the company had received a civil judgment from the Hangzhou Intermediate People's Court. The court ruled in the first instance that the company would compensate investors for investment losses, commissions, stamp duty, interest, and other losses totaling 2.6877 million yuan. At the same time, the audit institution and relevant directors, supervisors, and senior executives were jointly and severally liable for repayment. The litigation case of the special representative of Meishang Ecology is also progressing. The deterrent power of criminal responsibility continues to increase. Yitong Century recently received a criminal judgment issued by the Guangzhou Intermediate People's Court, stating that the defendant Xu Mouqun provided funds and assisted the co defendant in financial fraud during the signing and performance of the asset acquisition agreement, resulting in the victim unit (Yitong Century) paying an obviously unreasonable high price to purchase the target of the acquisition, causing significant economic losses to the victim unit. His behavior has constituted the crime of contract fraud, and he was sentenced to five years in prison and fined 500000 yuan in the first instance. At the same time, recover 40 million yuan of illegal gains from Xu's group and return it to Yitong Century; If the recovery is insufficient, the defendant Xu Mouqun shall be ordered to return the compensation. Along with strict supervision and management, the concept of "balancing error correction and protection" is also highlighted. After ST Tony was investigated for illegal information disclosure, the regulatory authorities imposed administrative penalties in less than 7 months, reflecting the regulatory concept of "early detection, quick punishment, and strict correction". This not only protects the rights and interests of investors, but also saves the company. With the implementation of administrative penalties, ST Tony entered a one-year "observation period". The company previously stated that it will do a good job in related work and strive to apply for the revocation of other risk warnings as soon as possible after meeting the conditions. A typical case is better than a stack of documents. ”Jiang Jing, a partner at Guohuan Law Firm, stated that the implementation and effectiveness of investor protection policies are constantly reflected in the precise accountability of violators and effective compensation for victims. This is a direct manifestation of purifying the market ecology and boosting investor confidence. Improving long-term mechanisms for investor protection is not a one-day effort. In the face of new trends such as the normalization of delisting, building a long-term mechanism and consolidating the joint efforts of all parties have become the key to deepening insurance work in the next step. Delisting does not mean 'end of responsibility', and the investor protection system after delisting, which investors are concerned about, is expected to be further upgraded. Senior market expert Gui Haoming suggests drawing on mature markets and specifying that the tender offer price should have a significant premium over the market price (such as setting a minimum ratio) to compensate for the loss of liquidity and future value. Introduce independent financial advisors to provide opinions on the fairness of the delisting plan, and establish a separate voting mechanism for small and medium-sized shareholders to ensure that the plan receives their majority support. The optimization of investor protection mechanisms such as special representative litigation is also being steadily explored. Cheng Hehong, Chief Lawyer of the China Securities Regulatory Commission, recently stated that in order to provide support for further improving the investor protection system and mechanism, in-depth research will be conducted on innovative administrative, civil, criminal law enforcement, judicial system mechanisms, and strengthening institutional connections, focusing on increasing the application of the special representative litigation system for securities disputes and improving the commitment system for administrative law enforcement parties. The linkage mechanism between optimizing accountability and investor compensation urgently needs to be resolved. Huang Jiangdong believes that the current "two lines" of administrative penalties and civil compensation have not been effectively coordinated, weakening the effectiveness of protecting investors and the comprehensive punitive power against violators. It is suggested that regulatory authorities order relevant responsible parties to establish a special compensation fund in addition to paying administrative fines, to be used to repay eligible investors. (New Society)