(2008-06-05)

Party Secretary and Chairman Shang Fulin of the China Securities Regulatory Commission (CSRC) pointed out in his recent on-site investigation to the damages of securities and futures business institutions and listed companies in Sichuan, that, we should actively support the affected companies for their post-disaster reconstruction by opening a “Green Channel” for those qualified financing and financing application of corporations and listed companies, respectively. As to the severely-damaged listed companies, we should actively support the expansion of financing channels and innovation of financing method to promote the resumption of normal operation as soon as possible. Each securities and futures business institution in the disaster area should earnestly evaluate the post-disaster damages to offer constant investor orientation in off-site trading. The CSRC will help the branches with strengthening, relocation and reasonable distribution of the damaged securities and futures business institutions.

According to Shang at the cadre meeting held in the temporary office of Sichuan Securities Regulatory Bureau, the quake relief is a significant challenge to the securities supervision system. The system’s Party-member cadres timely defied in dauntless spirit all the difficulties in accordance with the uniform arrangement of the State Council and the requirements of the CSRC, thus promoting the steady operation of capital market. In quake disaster relief, all the cadres and staff of the Sichuan Bureau, in the center of quake relief, contributed much to the normal performance of jurisdiction’s securities and futures market by displaying to the full the good spirit and work style of performing their duties for all the difficulties and toughness. He praised the Sichuan Bureau for their disaster relief. He also pointed out that the Bureau, in the first second after the quake, learned and analyzed the damages of listed companies, securities and futures business institutions within the jurisdiction and arranged the disaster relief and steady operation of the market. He hoped that the Bureau will, by sizing up the situation of the local securities industry, fulfill the historic mission with keen political responsibility in the light of the general deployment of the CPC Central Committee and the State Council to tackle all possible problems cropping up in the post-disaster reconstruction.

Shang made the following remarks on the upcoming priorities to the post-disaster reconstruction of the CSRC and the securities and futures system:

Firstly, the CSRC and the securities and futures industry should, according to relevant requirements of “Rules on Post-disaster Restoring and Rebuilding in Wenchuan ‘Draft’”, actively devote to the quake relief and post-disaster reconstruction. Due to the unceasing aftershock, the disaster still hasn’t been eliminated, but new injuries arising from deficient preventive measures should be prevented. We should cooperate with relevant departments to quicken the building’s safety evaluation of damaged branches, urge each securities and futures business institution to do a good job by putting investors’ documents under safe keeping or preparing backup files and some other recovery work and aftershock preventive measures.

Secondly, actively support the post-disaster reconstruction by combining the CSRC work with the characteristics of capital market. In view of the difficulties and problems that listed companies, securities and futures industry in disaster-stricken area faced in the reconstruction, the CSRC will, according to the general deployment of CPC Central Committee and the State Council on post-disaster reconstruction, study the capital market, support the policies and measures of post-disaster reconstruction and the work of reconstruction, thus promoting better development in the disaster-stricken area.

Thirdly, strengthen market stabilization in the jurisdiction. The securities regulatory authorities should resolve the legal issues including right confirmation and inheritance in accordance with the law and other aftermath work incurring from the death of an investor. Intermediaries should assist investors to deal with difficulties with good services. Besides, they should urge each branch to make relevant explanation and description and business management to protect the legal rights and interests of investors. Meanwhile, the depth of examination and maintenance of the information system should be reinforced to popularize distance trading and improve the safety of the system.

Fourthly, we should sum up the experience of quake relief, play up the advanced models and deeds emerging in the quake relief and draw up more effective contingency plans for devastating events. Meanwhile, we should do our utmost to assist the Sichuan Bureau to resume office condition as soon as possible to ensure the orderly operation of supervision.

Shang spoke highly of the corporation’s operation resumption within a short time in the on-site investigation to the worst-affected Dongfang Electrical Machinery Co., Ltd. (DEM). Considering the concrete difficulties that met in post-disaster restoring and rebuilding, Shang said that, the CSRC is now studying and formulating corresponding policies and measures to fully support the restoring and rebuilding of corporations in the disaster area including DEM. He hoped that the heavily stricken factory area of DEM would resume operation as soon as possible to keep improving the economic benefit and strengthening the corporation’s profit level for a win-win between corporations and investors.

In the devastating earthquake, Dujiangyan business department of Sinolink Securities Co., Ltd., with its business place being severely damaged, managed to meet investors’ demand by establishing a makeshift workplace. In his visit to the business department, Shang extended his consolation to the staff, and asked the department head sticking to the frontline about the trading. According to Shang, thanks to the joint efforts made by all staff of the industry, the capital market has never suspended trading since the earthquake. Shang said during his talk with the investors that, with joint efforts by market participants including investors, the capital market certainly can develop steadily and healthily.

During the visit in Sichuan, Shang exchanged views with relevant heads of Sichuan Provincial Government on capital market’s support to post-disaster reconstruction. Besides, he checked the computer center room of West China Securities Co., Ltd. and Chengdu Brilliant Futures Co., Ltd., before a formal discussion with some heads of damaged listed companies, securities and futures business institutions.

Shang: Support Quake-stricken Listed Companies for Reconstruction (Image)