SCIO briefing on the reform and development of the capital market

Xinhua News Agency:

The CSRC is now revising the regulation on listed company management. How will the CSRC take into consideration the leadership of the Party in the process? How to coordinate the two aspects effectively? Can you tell us about this in detail? Thank you.

Liu Shiyu:

The leadership of the CPC has stood the test of our people and history. The PRC’s Constitution clearly stipulates that the leadership of the CPC is the core feature of the socialism with Chinese characteristics. Article 19 of the Company Law states clearly the responsibilities of Party organizations towards companies. I hold that the Party organizations will shoulder different responsibilities in regard to companies with different ownership structures. At State-controlled listed companies, the Party committee forms the political and leadership core; at private listed companies, it is necessary to implement the rules of the Party, guarantee the rights of Party members, and give full play to the roles of Party organizations and members.

Maybe you have noticed that the CSRC severely punished some listed companies last Friday. No matter what kind of ownership is involved, a listed company should follow the fundamental political system in China and abide by its laws. Listed companies have to be responsible for the interests of shareholders, the society and the nation, and so should surely be under stricter supervision.