Research On Securities Supervision In Chinese Concept Share Enterprise

With the deep development of the process of economic globalization,the securities markets of various countries are becoming more and more closely connected,securities issuance and trading activities between regions are increasing.Enterprises from various countries choose to pursue high profits through listing on overseas stock exchanges.It has become an important means of multinational financing for the enterprises.As far as the development of China’s securities market is concerned,with the continuous advancement of the policy of "bringing in" and "going out" in China,a growing number of Chinese entities have begun to issue listings overseas,and the linkage of the securities market is deepening.Since 2014,the Shanghai-Hong Kong Stock Connect program and Shenzhen-Hong Kong Stock Connect program were launched.In June 2017,China launched the Bond Connect,then the Shanghai-London Stock Connect was launched in 2018,etc.All these programs reflect that the open degree of China’s securities market is becoming deeper.Securities market is an important part of modern economy and one of the effective ways for market economy to allocate resources.It plays a very important role in the development of China’s economy and society.However,while emphasizing the importance of the securities market,it also needs government to appropriately intervene in regulation and lead development of the securities market.In recent years,with the rapid progress of the global securities market,illegal actors have continuously shifted their illegal positions to seek illegitimate interests.Various types of cross-border securities violation cases have emerged one after another in complex and diverse forms.Before Luckin Coffee was exposed to financial fraud,many listed companies in the United States,including China Express Channel,Rino Technology Corp Inc,had delisted from the United States securities market due to the short selling reports issued by the short selling agency Muddy Waters.The consequence of this series of frequent short selling directly led to the reputation of Chinese concept stock companies being greatly questioned in the international community.Before the revision of the Securities Law of the People’s Republic of China,Chinese law did not provide for the extraterritorial jurisdiction of regulators in securities supervision.When the CSRC is faced with the cross-border securities violations and crimes committed by overseas listed companies,the supervision efficiency is often slightly insufficient.These series of supervisory dilemmas affect the realization of the supervisory effect of Chinese concept stock companies.In order to deal with the cross-border supervision under the background of the globalization of securities trading,revision of the Securities Law of the People’s Republic of China has added extraterritorial jurisdiction clause,to clarify the scope of jurisdiction,thereby strengthening the supervision of illegal and criminal acts in cross-border securities.Although the new Securities Law clarifies that China has jurisdiction over such cases,how to better exert its effects in practice still needs to be further improved because most of the regulation clauses are principles and not specific.In addition,because the supervision of China’s general stock enterprises involves multiple regulatory bodies,according to the current laws and regulations of China,U.S.regulators cannot directly supervise and inspect Chinese accounting firms.Under normal circumstances,it is difficult to obtain the financial reports of Chinese companies by accounting firms.The existence of cross-border regulatory conflicts and the lack of cooperation and communication between China and the United States have led to the inability of the regulatory agencies of China and the United States to form a regulatory joint force,giving Chinese concept stock companies an opportunity to escape from supervision.In addition,the absence of daily supervision and weaker punishment after the crime also led to the frequent occurrence of illegal and criminal incidents such as financial fraud in Chinese concept stock companies.In order to strengthen the cross-border securities supervision of Chinese concept stock companies,to better restrain the occurrence of cross-border securities illegal and criminal activities,and to maintain the image of Chinese companies in the international market.First,in accordance with the conditions for the application of extraterritorial jurisdiction set by the new Securities Law,in the case of overseas securities violations and criminal acts disrupting the order of the domestic market and damaging the legitimate rights and interests of domestic investors,strengthen overseas listing by exercising extraterritorial jurisdiction Corporate supervision.At the same time,in the process of exercising cross-border supervision power,we must pay attention to the power exercise boundary,respect the sovereignty of other countries,strengthen supervision mutual trust,and avoid cross-border supervision conflicts.In addition,the responsibility for cross-border violations can also be appropriately increased,and the efficiency of supervision of cross-border listed companies can be improved with the help of regulatory technology.More importantly,it pays attention to cross-border supervision cooperation between different regulatory entities.We should learn from the development of cross-border securities supervision cooperation between the Mainland and Hong Kong,then innovate cross-border supervision by improving the laws and regulations related to cross-border supervision cooperation in China.Cooperation will promote the realization of the effect of cross-border regulatory cooperation.