On March 8th, Yang Zongru, a member of the National Committee of the Chinese People’s Political Consultative Conference and director of the Guangdong Securities Regulatory Bureau, suggested at an economic sector group discussion meeting that a judicial interpretation on the crime of breach of trust should be introduced, and that criminal cases of financial fraud and embezzlement of assets of listed companies should be strictly investigated and dealt with, while exploring the pilot of securities civil public interest litigation initiated by the procuratorial organs. Yang Zongru put forward four suggestions, one of which is to introduce a judicial interpretation on the crime of breach of trust and strengthen the institutional rules for the infringement of the interests of listed companies and the misappropriation of fund assets by private fund managers. Secondly, it is suggested to strictly investigate and handle illegal and criminal cases of financial fraud and embezzlement of assets of listed companies, and hold third parties criminally responsible for cooperating with fraud in accordance with the law. This will explore the formation of a number of typical cases, highlighting the criminal crackdown and civil accountability for illegal acts of controlling shareholders and actual controllers that infringe on the interests of investors in listed companies. The third suggestion is to further improve the efficiency and convenience of investor rights protection. The fourth suggestion is to establish a collaborative mechanism between the people’s courts and securities regulatory authorities for non litigation enforcement.
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