“退市不免责”常态化执法格局成型

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has intensified its crackdown on financial fraud among listed companies, establishing a "zero tolerance" policy that undermines the notion that delisting offers immunity from accountability [1][2]. Regulatory Actions - The CSRC has issued significant penalties for financial fraud, including a proposed fine of 229 million yuan for *ST Dongtong, which was found to have inflated revenue and profits for four consecutive years [1]. - The case of *ST Dongtong has led to the initiation of delisting procedures due to serious violations, reinforcing the message that regulatory scrutiny will persist regardless of a company's delisting status [2]. Market Impact - The trend of "delisting does not equate to immunity" has become a norm, with over ten companies facing potential delisting due to financial fraud this year, marking a record high [2]. - From the beginning of 2024 to August 31, the CSRC has investigated 67 delisted companies for illegal activities, resulting in a total fine of 1.246 billion yuan for 46 of these cases [2]. Governance and Compliance - There is a shift in the responsibilities of company executives, moving from passive compliance to active accountability, as seen in the case of ST Lutong, where board members expressed concerns over the accuracy of financial reports [3]. - Companies are increasingly opting for compliance and proactive measures, such as introducing strategic investors and adjusting performance expectations, rather than resorting to fraudulent practices [3]. Future Directions - Experts suggest that enhancing the comprehensive prevention and punishment mechanism is essential for combating financial fraud, which includes improving the efficiency of on-site inspections and leveraging new technologies for better oversight [4][5]. - There is a call for stricter accountability for intermediary institutions and independent directors, emphasizing the need for audit firms to maintain independence and rigorously adhere to auditing standards [5].