Recently, the China Securities Regulatory Commission (CSRC) held a systematic videoconference to make deployment of further enhancing the supervision over listed companies, fighting against impairment of the listed companies's interests, and safeguarding investors' legal interests. CSRC Vice Chairman Fan Fuchun made an important speech at the conference.

Fan reported the cases that controlling shareholders of the two listed companies -- Zoje Sewing Machine Co., Ltd. and Shandong Jiufa Edible Fungus Co., Ltd. misappropriated the listed companies' capital. At this conference, he also required supervisory cadres of all the listed companies to continually consolidate the achievements in the improvement of listed companies' quality in the recent years. We should further improve market supervision, intensify crackdown on major shareholders' illegal occupation and misappropriation of listed companies' capital, and protect legal rights and interests of listed companies and investors.

Moreover, Fan made deployment for further work as follows: firstly, all the securities regulatory bureaus should hold special meetings for the listed companies with attendance of board chairmen, general managers, persons in charge of finance and secretaries to directorate within their jurisdiction areas, and intensify training of directors, supervisors and senior management by urging them to seriously study laws and regulations including the "Circular of the State Council on Approving and Forwarding the CSRC' s Opinions on Improving Listed Companies' Quality" , the "Criminal Law Amendment Act (VI)" and the "Supplementary Provision on Recourse Standard of Economic Crime Cases". The listed companies' heads and controlling shareholders should improve their legal awareness and stick to standardized operation, thus preventing infringement of the interests of listed companies and other shareholders such as false information disclosure, insider trading, and illegal occupation of listed companies' capital. Secondly, all the securities regulatory bureaus should organize the listed companies to conduct self-check and self-correction, thus making rectifications on problems and strengthening self-discipline awareness. Meanwhile, these bureaus should deepen and promote the governance of listed companies, urge their improvement of the Articles of Association and the rules of order, reinforce systematic guarantee for their standardized operation according to laws and gradually establish a lone-term mechanism of ensuring the listed companies' independence and eliminating the capital occupation. Thus, investors will witness true, sustainable and highly-rewarding listed companies with conscious implementation of the Scientific Outlook on Development. Thirdly, all the securities regulatory bureaus should conduct special examination on listed companies' standardized operation. Based on the previous supervision experience and typical cases, these bureaus should improve the working methods, explore new supervision concepts, enhance the quick response ability and dynamic supervision of frontline supervision in an all-around way, and strengthen the timeliness, pertinence and effectiveness of supervision.

Yang Hua, Director of the CSRC Listed Company Supervision Department, presided over the meeting and made work arrangements.