(Yicai) May 17 -- The China Securities Regulatory Commission has introduced 10 new sets of regulations that are mainly intended to safeguard investors.

The new package of rules, released during an event for National Investors Protection Publicity Day on May 15, include the pilot version of regulations on the administration of program trading in the securities market and guidelines on the application of regulatory rules in the context of share issuance and listing, cash dividends, shareholding reduction, and quantitative trading.

CSRC Chairman Wu Qing said the aim is to strengthen the duty performance and due diligence of organizations in the securities sector and protect investors' legitimate rights and interests.

Moving forward, the CSRC will further improve investor protections in five ways: by consolidating the institutional foundation of investor protection, promoting the qualitative improvement of listed companies, enhancing the professional service level of institutions in the sector, strictly cracking down on securities violations and crimes, and ensuring smooth channels for investor rights protection and remedy, Wu noted.

The stock exchanges in Shanghai, Shenzhen, and Beijing as well as the Securities Association of China and Asset Management Association of China, will then issue relevant business regulations and specify the corresponding details for implementation based on the new rules issued by the CSRC, Yicai learned. Once ready, the regulations will be released for public opinion solicitation.

Some executives at branches of the CSRC in Shaanxi province, Shanghai, and Shenzhen said that improving institutions and rules will maintain market fairness, enhance regulatory efficiency, and make market entities actively involved in the protection of investors.

At the same time, investors need to recognize the basic principle of the risk-return tradeoff when investing, view market fluctuations rationally, and improve their understanding of financial products and services, said Liu Bing, business director, member of the executive committee, and board secretary of China Galaxy Securities.  

They should also keep clear of illegal securities activities and be aware of rights protection channels to seek legal assistance and safeguard their legitimate rights and interests, Liu said.

On the same days as it released the new package of rules, the CSRC also revealed multiple investor protection enforcement cases from last year.

The watchdog investigated 717 securities and futures violation cases, a near 20 percent increase on the previous year. It imposed 539 administrative penalties, penalized 1,073 responsible bodies, banned 103 people from the securities market, and imposed fines and forfeitures totalling CNY6.4 billion (USD884.1 million), up 40 percent, 43 percent, 47 percent, and 140 percent, respectively, in the period. The CSRC also handed 118 cases to the public security authorities.

Editor: Futura Costaglione