At the end of 2019, the Standing Committee of the National People's Congress of China reviewed and approved the revised "Securities Law of the People's Republic of China" (hereinafter referred to as the New Securities Law), which will be formally implemented in March this year. After the introduction of the bill, the company conducted in-depth studies and discussions on it, and felt that the new securities law has put forward higher requirements in terms of "information disclosure" and "investor protection".

"Information Disclosure" is listed in a separate chapter in the new Securities Law, setting up a brand-new concept of "information disclosure obligor", broadening and enriching the scope and standards of information disclosure, highlighting the importance of directors, supervisors and controlling shareholders in information disclosure. The status, obligations and responsibilities of the company have improved the basic rules of information disclosure, clarified the supervision direction and focus of information disclosure, reshaped the information disclosure supervision system and supervision power, established a three-dimensional and standardized model of information disclosure for listed companies, and gave full play to the information disclosure rules. Overall effectiveness.

At the same time, the new securities law also set up a special chapter on "Investor Protection" to greatly improve the level of investor protection: distinguish between ordinary investors and professional investors, and make targeted arrangements for investor rights protection; Once clearly stipulated the investor suitability system, clarified the securities representative litigation system-"the system of implied participation and explicit withdrawal", and in the "Legal Liability" chapter, the level of punishment for illegal acts was greatly increased, and the punishment multiple was changed from the original Basically, the 1-5 times increase to 1-10 times. When the securities market adopts the policy of “lenient entry and strict management” in the future, the policy goal of strict management will be achieved with strong penalties.