China Economic Weekly reporter Zou Songlin | Beijing Report
CPC Central Commission for Discipline Inspection State Supervision Commission website at 23:00 on May 19th news: Comrade Liu Shiyu, deputy secretary of the Party Group and director of the board of directors of the All-China Federation of Supply and Marketing Cooperatives, was suspected of violating the law and voluntarily surrendered himself, and is currently cooperating with the State Supervision Commission of the Central Commission for Discipline Inspection for examination and investigation.
Liu Shiyu’s last public appearance was on May 13th. According to the news of China Supply and Marketing Cooperation Network sponsored by All-China Federation of Supply and Marketing Cooperatives, on the same day, Liu Shiyu met with Ruan Yubao, chairman of the Viet Nam Cooperative Alliance, and his party in China Supply and Marketing Group.
Liu Shiyu, a former deputy governor of the central bank, chairman of the Agricultural Bank of China and chairman of the China Securities Regulatory Commission, was suspected of violating discipline and law, which had long been a warning.
At the end of April, there were rumors of "accidents"
In February 2016, Liu Shiyu, then the chairman of China Agricultural Bank, was transferred to the post of Party Secretary and Chairman of China Securities Regulatory Commission.
On January 26, 2019, Liu Shiyu was removed from the post of Party Secretary and Chairman of China Securities Regulatory Commission, and was transferred to the All-China Federation of Supply and Marketing Cooperatives as Deputy Secretary of the Party Group and Director of the Board of Directors.
More than two months later, the General Office of the State Council issued a notice on adjusting the members of the central bank’s monetary policy committee, and Liu Shiyu no longer served as a member of the monetary policy committee.
When Liu Shiyu, a former deputy governor of the People’s Bank of China, chairman of the Agricultural Bank of China and chairman of the China Securities Regulatory Commission, went to the National Federation of Supply and Marketing Cooperatives, it was analyzed that although Liu Shiyu was transferred at the same level, the National Federation of Supply and Marketing Cooperatives was a relatively obscure "second-line ministry". Liu Shiyu was born in November, 1961, and he is not yet 58 years old. This transfer is obviously not a positive signal.
In addition, in the eyes of many people, the National Federation of Supply and Marketing Cooperatives belongs to the product of the planned economy era, and Liu Shiyu’s position is "idle", which does not match his status as a senior official nurtured in the market economy.
After the job adjustment, Liu Shiyu rarely appeared in the public eye. In late April, it was said that Liu Shiyu might "have an accident". Until the beginning of May, he made another public appearance, which showed that he was still performing his duties normally at that time, but it still seemed that he could not quell the rumors.
This time, Liu Shiyu voluntarily surrendered himself and cooperated with the investigation, becoming the first Central Committee member to have an accident since the 19th National Congress. However, in CPC Central Commission for Discipline Inspection’s briefing, Liu Shiyu was still called a "comrade".
During his tenure at the CSRC, the number of IPOs in Jiangsu Province ranked first in the country?
Regarding the cause of Liu Shiyu’s accident, many speculations in the market point to his tenure as chairman of the CSRC.
According to public information, Liu Shiyu is from Guanyun, Jiangsu. From 2016 to the beginning of 2019, during Liu Shiyu’s three years as chairman of the China Securities Regulatory Commission, the number of IPOs of enterprises from Jiangsu was among the highest in the country.
This made him questioned.
According to statistics, in 2016, the number of IPO enterprises in Jiangsu Province was about 41, accounting for 17% of the total IPO enterprises in the country; In 2017, the number of IPO enterprises in Jiangsu Province was 65, ranking third in the country; 2018 is considered to be the most difficult year for IPO. Jiangsu Province ranked first in the number of IPOs in that year with 22 IPO companies.
Many financial institutions in Jiangsu Province, such as Jiangsu Bank, Jiangyin Bank, Zhangjiagang Bank and Zijin Rural Commercial Bank, were successfully listed during this period.
In 2017, China Economic Weekly reported Jiangyin Bank, the "worst listed bank". Jiangyin Bank started the IPO road in 2008, and after 8 years, it was not successfully listed until September 2016. Before the listing, Jiangyin Bank was beset with problems. During the IPO, Jiangyin Bank encountered many problems, such as lawsuits, uncollectible loans and conflicts with shareholders. After listing, it did not improve its performance with the help of the capital market, and even once became the worst bank among 39 listed banks.
Of course, it is still uncertain whether Liu Shiyu’s violation of discipline and law occurred during his tenure at the China Securities Regulatory Commission or during his tenure at the Agricultural Bank of China. The reasons and details of his involvement need further official investigation. As the controversial chairman of the China Securities Regulatory Commission, his hot remarks and strong supervision measures have run through his three-year term.
Liu Shiyu’s Top Ten Calls with High Network Attention
Call 1: As the chairman of the CSRC, I can’t advise you to buy stocks, let alone sell them.
Shout 2: It is not easy for ordinary people to earn some money. In the case of market liquidity exhaustion and large-scale panic, they will get it if they don’t take it.
Venue: Press conference of the Fourth Session of the 12th National People’s Congress.
Background: Before the National People’s Congress in 2016, the A-share market was not calm. By the end of February, the Shanghai Composite Index had fallen by 24.05%. On the last trading day of February, nearly 500 listed companies in A-shares fell. On February 20, 2016, the new chairman of the China Securities Regulatory Commission, Liu Shiyu, took up his post.
Call 3: I hope that asset managers should not be extravagant local tyrants, goblins who make waves, and harmful people.
Venue: The Second Member Congress of asset management association of china
Background: Since 2015, there have been many incidents in the capital market in which listed companies are listed by insurance funds, such as "Baowan dispute" and "CSG A Palace Fight".
Call 4: severely punish the capital predators who challenge the legal bottom line, catch rats and fight wolves, and dare to show their swords.
Occasion: investigation and guidance, discussion and exchange on inspection and law enforcement.
Background: On January 3, 2017, Liu Shiyu, Chairman of the China Securities Regulatory Commission, made a special trip to the Inspection Bureau and the Inspection Corps of the China Securities Regulatory Commission for work investigation. Liu Shiyu stressed that it is necessary to further improve the inspection and law enforcement of the capital market in 2017, severely crack down on illegal and criminal activities in securities and futures, severely punish capital predators who challenge the legal bottom line, catch rats and kill wolves, dare to show their swords, maintain the operating order of the capital market according to law, effectively prevent capital market risks, and effectively promote the standardized development of the capital market.
Call 5: The capital market does not allow predators to call the shots and suck blood from retail investors; It is necessary to arrest a group of capital predators in a planned way.
Venue: 2017 Securities and Futures Regulatory Work Conference
Background: In summing up the work of the previous year, Liu Shiyu mentioned that the supervision and law enforcement ability of the capital market has been improved. In view of the chaos in the market for many years, the CSRC thoroughly investigated a number of influential cases.
Call 6: xiong’an new area is a great opportunity, so listed companies should not add chaos.
Background: On April 1st, 2017, the Central Committee of the Communist Party of China and the State Council decided to set up xiong’an new area, which led to the top gains of xiong’an new area concept stocks for several days in succession, and many listed companies also issued announcements to "rub hot spots".
Call 7: "10 get 30 free" is not available all over the world and must be included in the key supervision.
Background: In fact, "high delivery" is purely a digital game, but many investors enjoy it. Some listed companies also use "high delivery" to boost their stock prices, constantly set a new record of high delivery, and even strive to be "high delivery". Liu Shiyu said that most of the listed companies are good, but there are also genuine ones. Some listed companies make financial fraud, some use high turnover to encourage stock price speculation, and some "flickering" and "following the trend" restructuring have become market ills. Listed companies should not participate in financial chaos, what 10 get 30 free? There is none in the world, so it must be included in the key supervision, and the association of listed companies should also participate.
Call 8: Spring is not far away.
Occasion: the business department of the securities firm has a discussion with the shareholders.
Background: On October 14, 2018, Liu Shiyu had a discussion with investors in the sales department of CITIC Construction Investment to listen to their opinions on the development of the capital market. Liu Shiyu said at the scene that some opinions can be absorbed into the policy. He also said that spring is not far away.
Call 9: Thank you for sticking to the capital market!
Occasion: China Securities Museum opens in Shanghai.
Background: On December 23rd, 2018, the China Securities Museum opened in Shanghai. In his live speech, Liu Shiyu thanked everyone for their dedication to China’s capital market for 28 years.
Call 10: Focus on investigating major cases that seriously endanger the smooth operation of the market.
Occasion: Investigating the Inspection Bureau and the Inspection Corps of CSRC.
Background: On January 2, 2019, Liu Shiyu went to the Inspection Bureau and the Inspection Corps of the China Securities Regulatory Commission for work investigation. Liu Shiyu said that it is necessary to focus on investigating and handling major cases, fully implement the work requirements for rectifying financial chaos, and accurately crack down on individuals and institutions that are reckless, evade supervision, and have a bad influence.
Some key policies issued by the CSRC during Liu Shiyu’s tenure.
In September 2016, the Opinions on Giving Play to the Role of Capital Market to Serve the Country’s Poverty Alleviation Strategy was released, and the IPO green channel policy of poverty-stricken counties was announced.
In September 2016, the "Guidelines for the Operation of Public Offering of Securities Investment Funds No.2 Fund Guidelines" was officially promulgated and implemented.
On December 5, 2016, Shenzhen-Hong Kong Stock Connect was officially opened to traffic.
On March 2, 2017, the CSRC issued the Guiding Opinions on Supporting the Development of Green Bonds.
On May 27, 2017, the CSRC issued "Several Provisions on Shareholder and Dong Jiangao of Listed Companies to Reduce their Shares".
On February 11, 2018, the CSRC issued the "Guidelines for Pension Target Securities Investment Funds (Trial)".
On June 6, 2018, the CSRC issued the "Implementation Measures for the Supervision of Domestic Issuance of Stocks or Depositary Receipts by Pilot Innovative Enterprises and Their Listing", and the CDR policy was officially launched.
On July 27th, 2018, the CSRC issued the Decision on Amending Several Opinions on Reforming, Perfecting and Strictly Implementing the Delisting System of Listed Companies.
On October 12, 2018, the CSRC issued the "Regulatory Provisions on the Interconnection of Depositary Receipts between Shanghai Stock Exchange and London Stock Exchange (Trial)", and the paving of the Huluntong system was basically completed.
On November 6, 2018, the CSRC issued the "Guiding Opinions on Improving the Stock Suspension and Resumption System of Listed Companies", and listed companies will not be allowed to suspend trading at will.
On November 9, 2018, the CSRC issued the Opinions on Supporting Listed Companies to Buy Back Shares.
Editor: Guo Fang
Audit: Zhang Wei