Core Viewpoint - The implementation of a pre-compensation system in the Chinese securities market is expected to enhance investor compensation efficiency and reduce reputational risks for responsible parties, despite only four previous cases in the last decade [1][2][5]. Group 1: Pre-Compensation System Overview - The pre-compensation system is seen as a "win-win" measure that can improve the efficiency of resolving securities disputes and stabilize market confidence [4][7]. - Five Mining Securities has announced its commitment to lead the development of a pre-compensation plan for investors affected by the financial fraud case involving Guandao Digital [2][3]. - The pre-compensation fund is estimated to be around 220 million yuan, aimed at compensating eligible investors for losses incurred due to Guandao Digital's information disclosure violations [2][5]. Group 2: Historical Context and Previous Cases - Prior to the current case, there have been four instances of pre-compensation in the Chinese securities market: the Wanfushengke case in 2013, the Hailianxun case in 2014, the Xintai Electric case in 2017, and the Zijing Storage case in 2023 [5][6]. - The Wanfushengke case saw 95.01% of eligible investors compensated within two months, with compensation amounting to 99.56% of the total owed [5]. - The Zijing Storage case involved a 1 billion yuan pre-compensation fund, with 98.93% of the claimed compensation amount being effectively paid out [6]. Group 3: Expert Opinions and Recommendations - Experts suggest that the lack of external incentives and enforcement mechanisms has led to a mismatch between the number of pre-compensation cases and the frequency of securities violations [9][10]. - Recommendations include enhancing the incentive mechanisms for responsible parties to encourage voluntary pre-compensation, potentially through regulatory leniency or credit rating advantages [11][12]. - The introduction of an insurance fund for pre-compensation could create a dual-track system, improving the overall effectiveness of investor protection measures [11][12].