China Securities Journal: SHFE Signs Regulatory Cooperative Memorandums with 11 Securities Regulatory Bureaus  

Updated on December 12,2017

Reported by Wang Zhuying

On December 11, Shanghai Futures Exchange (“SHFE”) signed regulatory cooperative memorandums with 11 securities regulatory bureaus in Shanghai. On the signing ceremony, Jiang Yan, Secretary of the Party Committee and Chairman of Board of Directors of SHFE, said that the signing of regulatory cooperative memorandums is an important measure to implement the spirit of the 19^th National Congress of the Communist Party of China, the keynote of National Conference on Financial Work and National Securities and Futures Regulatory System Mid-Year Symposium on Regulatory Work as well as the deployment requirements of the Party Committee of CSRC, which will facilitate the regulatory cooperation between the CSRC branches and the Exchange to rise up to a new dimension.

Jiang Yan pointed out that during the year of 2017 that is ending, under the correct leadership of the Party Committee of CSRC as well as the guidance of the new session of the Party Committee of SHFE, the Exchange has deeply learned, publicized and implemented the spirit of the 19th National Congress of the Communist Party of China, persistently regarded Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its guide to action, firmly established “Four Consciousnesses”, and created a new situation for the market development by enhancing the political stance, focusing on the upgrade of working style construction, preventing and controlling market risks and serving the real economy. Firstly, the Exchange has thoroughly strengthened the Party self-discipline, and consolidated the political ecology and the construction of a fine Party culture and clean organizations; secondly, it has conducted the regulation lawfully, thoroughly and tightly, and organized the market operation with the rigidness and steadiness in the first place; thirdly, it has fulfilled its tenet to serve the national strategy and lead the industrial development by reinforcing the advantages and improving the disadvantages; fourthly, it has consolidated the foundation of market development by strengthening the technology and focusing on the research; finally, it has optimized the market development environment by promoting the services and stressing on investor education.

According to Jiang Yan, SHFE will continue to deepen and implement the regulatory cooperative mechanism, carry out in-depth cooperation with the said CSRC branches under the “Five-in-One” futures market regulatory framework and better perform the frontline regulatory duties of the Exchange in a bid to effectively combine the self-regulation of the Exchange with the administrative regulation of securities regulatory bureaus, solidly enhance the regulatory efficiency and prevent and control market risks. By summing up the experience in time, the Exchange will further consolidate the regulatory cooperative relationship with the CSRC branches in other administrative regions and effectively put in place the lawful, thorough and stringent regulation.

Yan Bojin, Secretary of the Party Committee and Chief of Shanghai Securities Regulatory Bureau, said that as one of the concrete measures to have a good grasp of the spirit of the 119^th National Congress of the Communist Party of China, the signing of the regulatory cooperative memorandums has promoted the communication between the CSRC branches and the Exchange, unified our thinking, enhanced our sense of mission and responsibility, and also reflected the long-term view of the Party Committee of CSRC. Confronted with the requirements of preventing financial risks and upgrading the financial sector’s capability of serving the real economy, we need to further strengthen the regulatory system construction, technological means, quality of cadres as well as the regulatory cooperation.

Li Bingheng, Secretary of the Party Committee and Chief of Hubei Securities Regulatory Bureau, said that Hubei Bureau has already established a good working relationship with SHFE and achieved fruitful results in terms of research projects, publicity and training and talent cultivation. The signing of the regulatory cooperative memorandum has marked an even deeper cooperation between Hubei Bureau and the Exchange in the fields of intuitional regulation, investor protection, inspection and law enforcement and market cultivation, hitting a significant milestone. Both parties will draw on their own strength to enhance collaborated regulatory efforts and give better play to the functioning of serving the real economy through futures market.  

In accordance with the regulatory cooperative memorandum, the two signing parties are intended to strengthen the communication of market and regulatory information, improve the joint investigation and examination mechanism, further upgrade the exchange and cooperation in respect of market supervision and investor education and training, give full play to their advantages and enhance collaborated regulatory efforts.