The Standardization Of The Securities Market Order Under The Future Registration System

In March 2020,my country’s new "Securities Law" was formally implemented.The new "Securities Law" clarifies the comprehensive implementation of the registration system and provides a more complete legal guarantee for regulating the order of the securities market.The new "Securities Law" provides a more complete legal guarantee for regulating the order of the securities market.Judging from the frequent occurrences of financial frauds by listed companies in recent years,we analyze the motives and reasons for frauds,and fundamentally prevent the recurrence of similar errors,strengthen the integrity disclosure of listed company information and investor protection mechanisms,and safeguard the information under the registration system.The stability of the securities market is particularly important.The financial fraud case of Kangmei Pharmaceutical that broke out in early 2019 has brought a serious impact on the supervision of the securities market.The China Securities Regulatory Commission rarely characterizes it as "premeditated,organized,long-term and systematic implementation of financial fraud,maliciously deceiving investors." Kangmei uses various methods of fraud,inflating asset items,falsifying items in the income statement,and even failing to disclose related-party transactions in accordance with regulations.The company’s fraudulent amount is huge,and the fraud lasts for 3 years,causing serious losses to investors.This article takes the financial fraud of Kangmei Pharmaceutical from 2016 to2018 as an example,and uses comparative analysis and ratio analysis to analyze in depth the enlightenment of corporate financial fraud on regulating the order of the securities market.The first chapter of this article mainly introduces the background,purpose,and significance of the research,the typical case,the main research content and methods,and the main innovations;the second chapter introduces the company profile of Kangmei Pharmaceutical,the company’s financial fraud exposure process,and the company’s Financial fraud methods and the consequences of fraud;Chapter three is a case analysis.According to the research,Kangmei Pharmaceutical has three motives for fraud: one is to whitewash its business performance and maintain its position in the industry;the other is to meet low-interest financing needs and achieve asset expansion;and the third is to maintain stock price stability and maintain market investment enthusiasm.There are two reasons for this.The superficial reasons are defects in the company’s management structure,executives seeking incentives,audit agencies failing to perform due diligence checks,and underwriting and sponsoring agencies failing to perform their duties.But the deeper reasons are that the company’s decision-makers do not have a deep understanding of the essence of corporate internal governance;the company’s equity incentive plan is too radical;the company’s financial fraud penalties are too light to induce fluke psychology;information disclosure and investor protection regulations in the securities market are not perfect,and Insufficient supervision of relevant securities intermediary service agencies.The fourth chapter is the conclusion and enlightenment.Among them,the enlightenment is closely integrated with the reality of the comprehensive promotion of the registration system in the future.It is pointed out that listed companies must consider long-term sustainable development and strengthen internal strength training;market supervision must have comprehensive measures,appropriate strengths,and implementation;intermediary service agencies must to keep oneself clean,to escort the enterprise in the right direction,to strengthen the establishment of the enterprise credit system,and to strengthen the supervision of public opinion.