Series of promotional articles on the investor protection special action of "Being an Honest and Trustworthy Listed Company" (Part 4)
Release time：
2020-06-17
A Brief Analysis and Practical Sharing on Learning the New Securities Law and Strengthening Investor Protection
(Yunnan Baiyao 000538)
On March 1, 2020, the revised Securities Law of the People's Republic of China (hereinafter referred to as the "Securities Law") officially came into effect, marking a new cycle for the capital market. This revision of the Securities Law took more than four years, and after four deliberations by the Standing Committee of the National People's Congress, the "overhaul" was finally completed. At the same time, this revision is also the most important revision of China's Securities Law since its implementation more than 20 years ago. Registration into the law, increasing the cost of securities violations, improving the investor protection system, and establishing a sound multi-level capital market system are of great significance and far-reaching impact. Among them, information disclosure and investor protection are both published as separate chapters, which is also one of the core contents of this revision of the Securities Law.
In the section on information disclosure, the core revisions have been made: (1) In the principle requirements for information disclosure, based on truthfulness, accuracy, completeness, timeliness, fairness, etc., a requirement of "concise, clear, and easy to understand" has been added, guided by investors, to reduce the obstacles caused by excessive redundancy and difficult to understand information for investors to read announcements; (2) If securities are publicly issued and traded both domestically and internationally, the information disclosed overseas should be disclosed domestically at the same time; (3) For the first time, it is explicitly stated that 'disclosure to all investors simultaneously', which once again emphasizes and consolidates the fairness of Xinpi; (4) The punishment for violating the regulations of Xinpi has been increased, compared to the maximum fine of 600000 yuan under the original Securities Law. This revision significantly increases the amount of fines, which will have a stronger deterrent effect on illegal information disclosure behavior; (5) The channel of information disclosure has been broadened, which further clarifies that listed companies should publish legally disclosed information on the website of the stock exchange and on the media that meet the conditions prescribed by the securities regulatory authority under the State Council, and increases the Internet channel to make it more timely and convenient for investors to consult the announcement.
Investor protection is of utmost importance in the work of the capital market, closely related to promoting corporate financing and other aspects. It is necessary to seek the best balance through institutional constraints. When deliberating the revised draft of the Securities Law for the first time at the 14th meeting of the Standing Committee of the 12th National People's Congress in 2015, it was pointed out that the revision of the Securities Law should adhere to the problem orientation. The revised "Investor Protection" chapter of the Securities Law stipulates various investor protection systems, including investor suitability system, promotion of cash dividend system, collection of shareholder rights system, bondholder meeting and bond trustee system, advance compensation system, securities civil compensation group litigation, support litigation, and emphasis on mediation system for securities disputes. This revision regards "strengthening investor protection" as the fundamental purpose and mission of legislation and law revision, further improving the system for protecting the legitimate rights and interests of investors, and significantly enhancing the protection of the legitimate rights and interests of investors, especially small and medium-sized investors.
Information disclosure and investor relations management are important tools for listed companies to operate in a standardized manner in the capital market. Firstly, effectively safeguarding the legitimate rights and interests of investors is a prerequisite for all work. Over the years, Yunnan Baiyao has strictly adhered to various behavioral norms, achieving truthful, accurate, complete, timely, and fair information disclosure; In addition, utilizing multi-dimensional channels such as communication, research, interviews, visits, and product experiences, we strive to build a three-dimensional communication platform for investors, actively conveying the company's cultural connotation, business situation, and strategic direction, and continuously enhancing the confidence of investors in the company.
On June 28, 2019, the Shenzhen Stock Exchange released the "Announcement on the Assessment Results of Information Disclosure of Listed Companies on the Main Board of the Shenzhen Stock Exchange in 2018". Yunnan Baiyao's assessment result was A, and the company's information disclosure work has maintained a high level and standardized operation for a long time. In the past two years, the company has continuously optimized the resource allocation of investor relations management and comprehensively improved the protection of investor rights. Since 2018, it has received nearly 600 domestic and foreign investors from nearly 30 batches, timely disclosed more than 50 investor research materials, participated in dozens of strategy meetings such as UBS, China Merchants, Southwest, etc., received more than 200 investors and pharmaceutical researchers, organized more than 10 activities to enter listed companies, provided smooth telephone consultation services to more than 2000 investors, and provided a three-dimensional direct communication system for global Baiyao investors and shareholders. In 2019, major decision-making matters of the company were frequently introduced, and in the four shareholders' meetings, the attendance and approval rates of the majority of shareholders, especially small and medium-sized shareholders, reached record highs in previous years.
In the future, we will continue to deepen our study of relevant laws, regulations, and normative documents in the capital market, and continue to use "obsessive-compulsive disorder" to build a defense line for information disclosure, safeguarding the standardized operation of the company. At the same time, we will continue to build and maintain a more open and mutually beneficial relationship with investors, effectively safeguard the legitimate rights and interests of investors, strive to build a three-dimensional communication platform for investors, constantly innovate and optimize methods and models of investor relations management, take responsibility for maintaining the company's reputation, protect the rights and interests of investors, and fully practice the company's solemn commitments and responsibilities in the capital market.
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