Zheng Quan Ri Bao·2025-07-10 16:07Core Viewpoint - The regulatory authorities have intensified oversight on delisted companies, with a significant increase in penalties issued this year compared to the previous year, aimed at protecting the rights of small and medium investors and enhancing market integrity [1][2][3]. Regulatory Actions - As of July 10, 2023, 19 delisted companies have received 20 penalties from the China Securities Regulatory Commission (CSRC) or local regulatory bodies, a substantial increase from 10 penalties in the same period last year [2]. - The penalties include 18 administrative punishment decisions and 2 advance notices of administrative punishment, reflecting a strict "delisting does not exempt from liability" policy [2]. Case Examples - Nanjing Yuebo Power System Co., Ltd. was fined a total of 3.8 million yuan for failing to disclose its annual report on time and for financial misconduct, highlighting the regulatory focus on financial integrity [2]. - Guangdong Haiyin Group Co., Ltd. was penalized 13 million yuan for failing to disclose significant transactions with related parties in its annual reports, demonstrating the zero-tolerance approach of regulators [3]. Investor Compensation - Efforts to support investor compensation are ongoing, with various lawsuits initiated against delisted companies for losses incurred due to fraudulent activities [4]. - The Supreme People's Court and the CSRC have issued guidelines allowing investors to file civil compensation lawsuits for losses caused by false statements [4]. Legal Framework and Enforcement - There is a call for improved legal frameworks to facilitate investor rights and lower the costs of legal actions, emphasizing the need for streamlined processes and enhanced collaboration among regulatory bodies [5]. - The regulatory framework includes a multi-faceted accountability system that combines administrative, civil, and criminal measures to deter fraudulent activities in the capital market [6][7].