Chapter 22 Securities "brokers" expose the unspoken rules of "listing"

On April 21, 2006, the Beijing Higher People's Court made a final verdict on the bribery case of China Securities Regulatory Commission official Wang Xiaoshi, which caused a sensation throughout the country.The court sentenced the defendant, Wang Xiaoshi, to 13 years in prison for accepting bribes and confiscated 120,000 yuan of personal property.Lin Bi committed the crime of accepting bribes and introducing bribes to company personnel and was sentenced to 10 years in prison and 100,000 yuan of personal property was confiscated.So far, the case of Wang Xiaoshi has been settled. On the wrong occasion, Wang Xiaoshi, a researcher at the deputy division level of the China Securities Regulatory Commission, ate the wrong meal with several people, put himself in prison, and became famous for the crimes committed by officials of the China Securities Regulatory Commission. A famous case.In fact, Wang Xiaoshi's preoccupation with eating was not his fault. His fault was that he pimped others while eating, and stretched out his hand to take money that he thought should be taken, but the law stipulated that he shouldn't.

Almost everyone regards Wang Xiaoshi as a corrupt official, which really exalts him, he is just a broker.Of course, the reason why people pay so much attention to Wang Xiaoshi's case is not only because he is an official of the China Securities Regulatory Commission, but because Wang Xiaoshi's case tests the law enforcement environment of China's securities market. People hope that through the trial of Wang Xiaoshi, China's legal system can be promoted Enforcement of the securities market. More people pay attention to Wang Xiaoshi because the media has puffed this small "rock" Wang Xiaoshi into a "mountain" lying across the Chinese stock market.In fact, Wang Xiaoshi has no such ability. He cannot influence the operating rules of listed companies in China. He is just a securities broker who is greedy for petty gains. He uses the unspoken rules of listed companies to make small profits.

As for the general belief that Wang Xiaoshi was the first official of the China Securities Regulatory Commission to fall, and how much disaster he brought to the Chinese securities market, or at least Wang Xiaoshi is a rat droppings that ruined a pot of soup, etc., it is actually true. A misinterpretation of Wang Xiaoshi by some media during the dissemination process.It can be said that Wang Xiaoshi's power was exaggerated intentionally or unintentionally by the media's numerous reports, as if he was an indispensable figure in the operation of China's stock market and listed companies. This kind of exaggeration of Wang Xiaoshi's criminal ability, In the end, Wang Xiaoshi was demonized.

Wang Xiaoshi was born in a "revolutionary" family, both parents were engaged in party and government work.After graduating from middle school in 1982, Wang Xiaoshi took over his mother's class and entered the Beijing Transformer Factory to work. In 1984, Wang Xiaoshi was admitted to the Beijing School of Economics, which is now the Capital University of Economics and Business. When he graduated in July 1988 and was assigned to work in the State Patent Office, Wang Xiaoshi was already 27 years old. People who know Wang Xiaoshi think he is very down-to-earth, but he seldom communicates with others.Wang Xiaoshi was considered withdrawn because of his reticence, which may be the reason for his difficulty in getting along with others. In 1994, Wang Xiaoshi left the State Patent Office to work for the China Securities Regulatory Commission.

In getting along with relatives and friends, he didn't get along well with his brothers and sisters, especially after he got married, he didn't have much contact with his family members.One thing is still unbelievable.Wang Xiaoshi's younger sister went to work in a securities company after graduating from university. The leader of the company heard that her brother was working in the Securities Regulatory Commission, so they sent people and Wang Xiaoshi's younger sister to the Securities Regulatory Commission to visit Wang Xiaoshi, hoping to strengthen cooperation with the Securities Regulatory Commission through Wang Xiaoshi. Will contact.But Wang Xiaoshi was very indifferent to the arrival of his younger sister and her colleagues, and even made his younger sister a little embarrassed.After that, Wang Xiaoshi's sister left the securities company.

Wang Xiaoshi, who was so indifferent to his family, left the impression of being arrogant and withdrawn to his relatives.But in the outside world, Wang Xiaoshi, who is still taciturn, has an obvious characteristic that is well known to everyone, that is, he is very kind to his friends and shows loyalty.Many people think that it may be that he couldn't find emotional support in the big family, so he turned to his friends to seek it, and in turn did illegal things for his friends.Wang Xiaoshi's fall from the horse was implicated by his friend Lin Bi, and this Lin Bi was Wang Xiaoshi's buddy.

Lin Bi is a native of Pingtan County, Fujian Province. He was born in 1969. After finishing university in Fuzhou, he stayed in a local bank to work. Lin Bi joined the second investment bank department of Fujian Huaxing Trust and Investment Company around 1996. In June 1997, Responsible for the listing of Fujian Shuangling.After leaving Huaxing Trust, Lin Bi switched to Xiangcai Securities.Lin Bi gave people the impression that "has a bandit spirit". It is understood that Wang Xiaoshi and Lin Bi met before and after Lin Bi took office at Xiangcai Securities. Wang Xiaoshi was then the deputy director of the Issuance Department of the China Securities Regulatory Commission. They were introduced by a friend of Wang Xiaoshi.Lin Bi is mainly engaged in the "investment banking" business, that is, providing services and receiving commissions for corporate listing financing, asset restructuring, and listing planning and public relations.The distribution department where Wang Xiaoshi was at that time was a key department of the China Securities Regulatory Commission.In other words, if a company wants to go public for financing, it must pass the review of the issuance department.The specific exercise of this power is the Issuance Review Committee (referred to as the Issuance Review Committee).This relatively independent committee was set up under the Issuance Department, and the Office of the Issuance Examination Committee, where Wang Xiaoshi was the deputy director, happened to be in charge of organizing meetings of the Issuance Examination Committee. Lin Bi also took a fancy to Wang Xiaoshi's special resource.After Lin Bi and Wang Xiaoshi got acquainted, they began to boast about "someone in the China Securities Regulatory Commission" and how they have backgrounds.

Through complicated paths, companies, brokers, and regulators finally achieve the goal of money and power transactions and accelerated listing.Many people learned about "financial public relations" for the first time because of the Wang Xiaoshi case.Because they hold the "power of life and death" of the company's listing, many companies waiting to be listed are closely watching the Issuance Department of the China Securities Regulatory Commission where Wang Xiaoshi works. As long as they have the opportunity to contact people like Wang Xiaoshi, many companies will spare no expense and go all out. "PR".

In fact, financial PR itself is not illegal.Overseas, financial public relations, also known as investor relations management consultant, has developed into a very mature industry, aiming to actively promote healthy communication between listed companies and investors through professional investor promotion activities and effective media publicity. Improve the company's market image and achieve the goal of listing as soon as possible. However, in China, the financial and public relations industry has changed its taste and has become a hidden channel for power rent-seeking and power-for-money transactions, thus forming some so-called unspoken rules for listed companies.And establishing "relationships" with officials at all levels has become the business of financial public relations.Wang Xiaoshi is a participant in financial public relations, but also a victim.

Wang Xiaoshi could call his colleagues out for "a simple meal", which is a piece of cake, but it was this simple meal that gathered the powerful officials of the China Securities Regulatory Commission and the personnel of listed companies around a private round table. Turning a business that should be done according to the rules into a private agreement. In the first half of 2002, Lin Bi approached Wang Xiaoshi after getting the Fengzhu Textile Project, hoping to introduce himself to Qi, a member of the First Division of the Issuance Examination Committee, and Lou, the deputy director of the Second Division.Lin Bi told Wang Xiaoshi that people from Fujian Fengzhu Textile wanted to know these two people because they were in charge of the pre-examination of Fengzhu Textile's listing materials.

At this time, the listing materials of Fengzhu Textile have been submitted to the China Securities Regulatory Commission.Because Lin Bi has repeatedly stated that he has acquaintances in the China Securities Regulatory Commission, Fengzhu Textile hopes that the listing review can pass smoothly, so he hopes that Lin Bi will clear it up.Under Lin Bi's gossip, Chen, the chairman of Fengzhu Textile Company, met Wang Xiaoshi in a hotel in Shenzhen. Chen expressed the hope that he could get to know the members of the China Securities Regulatory Commission's Issuance Examination Committee through Wang Xiaoshi, and hoped to talk to them. Introduce the situation of Fengzhu Textile face to face. Later, Wang Xiaoshi introduced Lou and Qi to Chen, and made an appointment to eat at a restaurant near the office building of the China Securities Regulatory Commission.It is understood that Qi from the first division of the Issuance Examination Committee was in charge of the review of the legal part of the Fengzhu textile project, and Lou from the second division was in charge of the preliminary financial review of Fengzhu textile. Later, Wang Xiaoshi took Chen to different hotels in Beijing. Invite Lou and Qi to dinner. During this period, Wang Xiaoshi once gave Lou a laptop, but Lou refused. The investigation agency found that just after introducing Lou and Qi, Lin Bi gave Wang Xiaoshi 726,000 yuan by cash.In this regard, Wang Xiaoshi insisted that he only knew that Lin Bi gave the money, but did not know that Fengzhu Textile gave the money.Wang Xiaoshi believes that inviting Lou and Qi to dinner does not determine the listing of Fengzhu Textile.However, according to the working procedures of the Issuance Examination Committee, the listing pre-selection materials must pass the preliminary legal review of the first division and the financial preliminary review of the second division, and combine the two preliminary review opinions and submit them to the preliminary review committee and the IPO review committee. When Lin Bi was interrogated by the investigative agency, she confessed that she was a member of the listing project team of Fengzhu Textile. Fengzhu Textile hoped to pass the review and let Lin Bi conduct public relations. Ease of approval.Lin Bi called Wang Xiaoshi and said that it would be beneficial to help Fengzhu Textile introduce the personnel from the first and second divisions of the issuance review committee.Lin Bi confessed that Wang Xiaoshi told Lin Bi not to use his own bank card to transfer funds.Not long after, Wang Xiaoshi provided Lin Bi with his friend Wang's bank card number. Lin Bi opened a China Construction Bank Long Card account through his younger brother Lin Hai, and transferred funds from this account to Wang's account. 726,000 yuan of cash was withdrawn from Wang's account. Meeting, eating, and collecting money, this big case, which has been buzzing about, started so plainly. But what happened next was less prosaic. On November 3 and 4, 2004, the Anti-Corruption Bureau of the Xicheng District People's Procuratorate in Beijing respectively detained Lin Bi and Wang Xiaoshi on suspicion of accepting bribes.Afterwards, the Wang Xiaoshi case was transferred to the No. 1 Branch of the Beijing Municipal Procuratorate. Since the news of Wang Xiaoshi's interrogation by the procuratorial organ appeared in major newspapers across the country, the "Wang Xiaoshi case" has become one of the hottest news in China's financial media.Not only Wang Xiaoshi himself, but even Lin Bi and others involved in the case suddenly became news figures. On November 8, 2005, Wang Xiaoshi's case was heard in the Xizhong Court of Beijing No. 1 Intermediate People's Court. Wang Xiaoshi and Lin Bi were tried together.The procuratorate brought a lawsuit to the court on the basis that Wang Xiaoshi and Lin Bi were suspected of committing bribery.During the entire trial, whether Wang Xiaoshi worked in the China Securities Regulatory Commission during his bribery period, the amount of money involved in the case, and whether Fujian Fengzhu Textile Technology Co., Ltd. was listed in violation of regulations were the three major focuses, which were fully analyzed by both the prosecution and the defense. Focus 1: Were you an official of the China Securities Regulatory Commission during the incident? Since the incident, Wang Xiaoshi has been considered an official of the China Securities Regulatory Commission. In fact, from the end of 1998 to April 2003, that is, during the entire incident, Wang Xiaoshi was in charge of the preparations for the ChiNext Board at the Shenzhen Stock Exchange. Their salary, performance appraisal and working relationship are all arranged by the Shenzhen Stock Exchange.It was this experience that became the basis for Wang Xiaoshi's defense lawyer to defend him. Wang Xiaoshi's defense lawyer believes that Wang Xiaoshi's case mainly involves the issue of mediation and acceptance of bribes, and during the entire case, Wang Xiaoshi worked at the Shenzhen Stock Exchange.In addition, Qi and Lou, two staff members of the CSRC, are not the members of the IPO Examination Committee who finally decide whether the company will be listed or not. Their duty is only to review relevant legal and financial information.Wang Xiaoshi did not constitute the criminal elements of mediating and accepting bribes stipulated in Article 388 of my country's Criminal Law. The public prosecutor of the No. 1 Branch of the Beijing Procuratorate pointed out that Wang Xiaoshi once served as the deputy director of the work department of the Issuance Examination Committee of the China Securities Regulatory Commission and served as an assistant investigator. Wang Xiaoshi, Qi and Lou had influence based on their powers. Accepting Fengzhu Textile's request to arrange a meeting with the staff of the China Securities Regulatory Commission, and accepting a huge amount of money, has constituted a criminal fact. Wang Xiaoshi himself admitted during the trial that he made a connection between the CEO of Fengzhu Textile Company and the officials of the Issuance Review Office who reviewed the company's listing, and received more than 720,000 yuan.However, Wang Xiaoshi said that he did not know why Fengzhu Textile gave him the money.In his subsequent defense, Wang Xiaoshi said: "Many companies wanted to use me to get to know the members of the issuance review committee, but I refused. This time also educated me. I think it is wrong to collect money." Focus 2: Is Fengzhu Textile’s listing illegal? Fengzhu Textile involved in this case has become one of the focuses of the trial, especially whether its listing procedure is legal or not will be directly related to whether Wang Xiaoshi seeks improper benefits for it. It is understood that the China Securities Regulatory Commission sent people to investigate and collect evidence on the spot, and finally came to the conclusion that the listing of Fengzhu Textile was legal.Moreover, according to the testimony of the staff of the China Securities Regulatory Commission introduced by Wang Xiaoshi to Fengzhu Textile, in the process of reviewing Fengzhu Textile’s listing materials, although they found that Fengzhu Textile’s funds were delayed, the continuous calculation of performance was too much related to family members and other issues, but it does not constitute a substantial obstacle to the listing of Fengzhu Textile.Therefore, the listing of Fengzhu Textile fully complies with the relevant regulations of the China Securities Regulatory Commission. Focus 3: How much did Wang Xiaoshi accept bribes? The amount of money involved in Wang Xiaoshi’s case is also a matter of concern to people. According to the confessions of Wang Xiaoshi and Lin Bi and the allegations of the public prosecutor, after Wang Xiaoshi introduced the CEO of Fengzhu Textile and two staff members of the China Securities Regulatory Commission, he used other people’s money twice to get acquainted. The CCB Long Card account received 726,000 yuan from Lin Bi.In addition, Wang Xiaoshi was not aware of the 1.4 million yuan Lin Bi received from Fengzhu Textile, so the defendant's defense lawyer believed that the crime of conspiracy between the two to accept bribes could not be established. On December 9, 2005, the Beijing No. 1 Intermediate People's Court pronounced the first-instance verdict on Wang Xiaoshi's case.The court sentenced defendant Wang Xiaoshi to 13 years in prison for accepting bribes and confiscated 120,000 yuan of personal property; ten thousand yuan. Wang Xiaoshi expressed dissatisfaction with the verdict and said in court that he would "resolutely appeal".He said: "I can't accept this verdict because I didn't take bribes. From the very beginning, I thought I didn't take bribes. I just helped others get to know each other, and they gave me money." Wang Xiaoshi said after the court pronounced that the verdict He didn't expect it. He believed that the court should acquit him. The verdict of the first trial made Wang Xiaoshi feel "very wronged and aggrieved". However, after a careful trial by the Beijing Higher People's Court, the final judgment of the first instance was upheld. Wang Xiaoshi is just an inconspicuous little pawn in the China Securities Regulatory Commission, but his little pawn that was eliminated from the game fell from the chessboard to the ground, and jumped on the ground a few times, sending out a series of crisp The sound of the game only attracted the attention of the players and spectators.In fact, in the chess game of the entire Chinese stock market, Wang Xiaoshi, a small pawn, is really insignificant. So, what should we think of Wang Xiaoshi? In fact, he is just a small person who takes people's money, connects others, and finally falls into the French Open through the eyes of money.Wang Xiaoshi's crime should be attributed to his personal greed, but not all due to the irregularity of the company's listing process. The reason why Wang Xiaoshi became a criminal was of course related to his personal greed, and at the same time largely related to his environment.His department is "so powerful that people are jealous", where the work is the hottest and the most accident-prone.What is amazing is that Wang Xiaoshi confessed to receiving more than 720,000 yuan in funds, but he can publicly and loudly say that he has not committed a crime. So why does Wang Xiaoshi think the court should acquit him?This kind of grievance comes from the layer of thin paper that Wang Xiaoshi has exposed on the windows of the stock market for a long time, that is, the "hidden rules of the stock market".For a long time, financial public relations listing has been an open secret in the stock market. If a company wants to get a listing opportunity, its public relations are indispensable, and the public relations expenses range from three to five million yuan to seven to eight million or even thousands of dollars. ten thousand yuan.Dozens of new stocks are listed on the Chinese stock market every year, and their public relations expenses total more than 100 million yuan each year.In this huge amount of public relations expenses, Wang Xiaoshi's income is only 726,000 yuan, which is only a drop in the bucket. Moreover, Wang Xiaoshi just ate a few meals and cannot decide the company's stock issuance. destiny.Those powerful figures who hold the power of life and death are fine and have not been punished as they should, but they are unlucky. It is no wonder that Wang Xiaoshi feels wronged.The big witches are all safe and sound, but they blame the little witch. Doesn't Wang Xiaoshi feel that he is more wronged than Dou E?It is no wonder that Wang Xiaoshi believes that the court should acquit him. Wang Xiaoshi's fundamental mistake was to facilitate the combination of power and money, which in essence was relying on power to gain benefits for himself under the guise of public relations.The emergence of the Wang Xiaoshi case has exposed serious flaws in our securities system and mechanism, and it also shows that our country's company listing system is still far from standardized. "Unspoken rules" make listed companies deviate from the direction.It is undeniable that the purpose of many companies to go public has been reduced to, in the words of the common people, to make a lot of money by going public.Due to the numerous barriers for companies to go public, the loss of control of power is the root cause of the chronic illness of "financial public relations".In the process of listing a company, the Issuance Examination Committee of the China Securities Regulatory Commission has a lot of power, which provides conditions for power rent-seeking.This is why Wang Xiaoshi was paid more than 700,000 yuan for a single meal. (Text/Hei Ding Jianxin)