Wu Qing: resolutely curb speculative trading, complex nesting, excessive speculation, empty circulation of channels and other pseudo-innovations and chaotic innovations.

The China Securities Regulatory Commission (CSRC) released Wu Qing's speech at the Fourth Member Representative Conference of the China Securities Investment Fund Industry Association. Wu Qing pointed out the need to continuously strengthen the internal foundation of compliance and risk control. The private fund guidance issued yesterday comprehensively adjusts and optimizes the supervision management concept, emphasizing the improvement of regulatory and risk prevention mechanisms, the strengthening of the rule of law and market-oriented supervisory constraints, and the enhancement of central-local and inter-ministerial coordination. The CSRC is studying and developing a three-year action plan to implement the guidance, and will work with relevant units to establish a comprehensive "1+N+X" system for access, ongoing supervision, risk resolution, and developmental services, promoting industry development within regulation and enhancement through development. Private funds must improve their political stance and prioritize the implementation of the guidance and its regulatory rules, implementing them comprehensively throughout the entire process of business operations, making significant transformations and enhancements in ideology, models, and actions. They must fully meet the requirements of the guidance, learn from the lessons of some institutions' hasty development in the past, conscientiously examine their own shortcomings, adapt proactively, and cooperate actively with the adjustment of regulatory mechanisms, optimizing and perfecting their own management systems, regulations, and workflows. They should focus on improving governance mechanisms based on actual conditions, strengthening the constraints on key minority behaviors such as shareholders and senior management, and enhancing internal compliance systems and risk control indicators. They should adhere to strict behavioral norms, disclose information in compliance with the law, resolutely eliminate issues such as illegal fundraising, misappropriation, self-financing, and benefit transfers, rectify irregular behaviors such as proxy holding and channeling, and truly establish a "firewall" for compliant and ethical business operations. The system mechanisms and regulatory rules of public funds have accumulated relatively well over the years, with overall compliance, but recent audit supervision, regulatory inspections, risk cases, etc. have also exposed many problems in industry institutions regarding corporate governance, equity management, investment operations, product sales, etc., with occasional risk events still occurring. Industry institutions must not be complacent; they must remain vigilant, examine themselves, form sound corporate governance structures, strengthen compliance and risk control foundations, and truly ensure the participation, coverage, and implementation by all staff.