Economic Daily: There should be comprehensive accountability for financial fraud

Sky-high fines, market bans, forced delistings, and criminal referrals... Recently, the China Securities Regulatory Commission (CSRC) issued an administrative penalty notice regarding *ST Tongtech's suspected false records in periodic reports and other financial data, attracting market attention with multi-dimensional punishments and comprehensive accountability. The forced delisting and criminal referral completely shatter the illusion held by some that they can "raise funds through listing and escape liability through delisting." In the past, some listed companies, after being exposed for fraud, often harbored a fluke mentality of escaping liability through delisting, attempting to wipe the slate clean. This time, the CSRC stated that it will adhere to the principle of transferring all possible criminal clues to the public security organs, sending a signal of relentless pursuit of relevant illegal personnel. Who are the masterminds behind financial fraud, who are the culprits harming the interests of all shareholders, and who are the accomplices in collusion will not be forgotten simply because of delisting. Of course, to create a market environment where fraud is neither dared, nor can be, nor is desired, it requires not only strong post-event punishments but also meticulous pre-event prevention. Standardizing information disclosure, strict audit supervision, improving reporting mechanisms, and ensuring smooth channels for rights protection are all indispensable. Only by forming a regulatory closed loop of punishment and prevention can we compel listed companies to improve internal controls and standardize governance, fundamentally eliminating the breeding ground for financial fraud