Individuals must be alert when purchasing stocks of unlisted joint-stock companies
http://www.sina.com.cn 16:35, November 1, 2007 Central Government Portal
At 15:00 on November 1, 2007, Wei Xuechun, Deputy Director of the Office of Supervision of Non listed Public Companies of the CSRC, received an exclusive interview on the Chinese government website to communicate online with netizens on "cracking down on illegal securities activities".
[netizen axia6097] What should we do if we buy the shares of unlisted joint-stock companies and the shares issued by these companies have not been approved by the CSRC?
[Wei Xuechun] As an individual, when purchasing stocks of unlisted joint-stock companies, we must be vigilant. We must not trust the beautiful "money scene" fabricated by various illegal securities activities, let alone actively participate in illegal securities activities, or we will bear the corresponding legal consequences. Some investors do not realize the harmfulness of illegal securities activities, and even feel lucky, thinking that this is a shortcut to get rich quickly.
Only when these illegal issues shares Only when 20% of the enterprises fail to fulfill their so-called commitment to listing can investors truly realize that they have been cheated. There is a long lag between investors buying illegally issued shares and complaining to relevant departments.
Article 18 of the Measures for the Suppression of Illegal Financial Institutions and Illegal Financial Business Activities issued by the State Council in 1998 clearly stipulates that "losses incurred from participation in illegal financial business activities shall be borne by the participants themselves". Therefore, investors must have a sense of self-protection, never take chances, recognize the fraud fabricated under the guise of so-called "original stocks", "stocks to be listed overseas", and consciously stay away from illegal negotiable securities Activities to avoid being cheated.
If the illegal securities activities constitute a crime, the victim shall recover the compensation from the perpetrator through the criminal judgment of the people's court; If the illegal securities activity is only a general illegal act and does not constitute a crime, and meets the prosecution conditions specified in the Civil Procedure Law, the parties may claim compensation through the tort civil procedure. At the same time, investors can also go to the local leading group for combating illegal securities activities or the member units of the working group to make complaints and seek help.
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
