Before the promulgation of the Securities Law on July 1, 1999, several major events appeared one after another. There are mainly:
"8.1" Shenzhen Stock Offering Event
From August 9 to 11, 1992, Shenzhen issued 5 million yuan of new shares in the form of subscription lottery. From the 8th, more than one million local and prospective investors from all over the country lined up in front of 32 sales outlets in the city, ready to buy a lottery table of 1 yuan each. It was able to maintain a certain order when it was launched on the morning of the 9th. However, due to problems in the organization of some outlets, the order was chaotic and conflicts occurred. By the morning of August 1th, all the lottery tables were sold out. On this evening, thousands of investors who didn't buy the lottery table marched in Shennan Middle Road in the city, and put up slogans against corruption and demanding justice, which led to a siege of the municipal government and the People's Bank of China.
Stock Subscription Certificate
In January p>1992, a novelty called "Stock Subscription Certificate" became popular in Shanghai.
On May 21st, the Shanghai Stock Exchange released the price limit of only 15 listed stocks, which caused the stock market to skyrocket. Since there is no limit on the daily limit, the Shanghai stock market has risen by 15% in one day. Subsequently, the stock index soared for two days. More and more people are beginning to believe that China stocks can make people rich overnight.
August 9th (Sunday) and August 1th (Monday). The long-awaited Shenzhen stock subscription lottery table was issued. There was a queue in front of the watch outlets three days in advance, and on the morning of the 9 th, there was a long-term wealth of 1 million people. Tens of millions of bundles of ID cards are sent to Shenzhen by express mail. The people in the queue, regardless of sex, age, married or unmarried, hugged each other tightly for 1 hours. Although it rained cats and dogs at 4 o'clock in the afternoon, people "can't bang nine thousand thunderbolts." By 9: pm on August 9, 5 million new share subscription lottery forms had all been issued. However, many people have discovered the act of engaging in malpractices and secretly buying subscription forms. Speculation on subscription forms was rampant before the sale outlets, and one form in 1 yuan has been speculated from 3 yuan to 5 yuan. At this time, the bank issued an announcement to extend the recovery period of the acquisition form to August 11. Many people think there is fraud here. At 11: pm on August 1th, the assistant mayor of Shenzhen came forward, met with the petitioners, announced five notices from the municipal government, and decided to issue another 5, subscription forms to ease the purchase pressure. But people still don't disperse ... At midnight, the police and demonstrators began to clash. Shenzhen police arrested 12 "troublemakers". At 2: pm on August 11th, 5, newly issued coupons for subscription lottery of new shares were put on sale, and all of them were sold out the next day, which was in good order. On the evening of August 11th, Zheng Liangyu, Mayor of Shenzhen, delivered a televised speech: "On the evening of the 1th, a very small number of lawless elements took advantage of the shortage of lottery tables for the sale of new shares in our city and some shortcomings in organizational work to gather people to make trouble, which seriously undermined social order and endangered the stability and unity of the SAR. ..... Every citizen of ours should know the general situation, take care of the overall situation and cherish the hard-won stability and unity of the SAR. " ......
The stock fraudsters in the "8.1" storm took four months to find out: 11 financial institutions in the city set up 3 selling points, and 1 units ***95 selling points were reported by the masses; From more than 2,9 complaints from the masses, 62 key clues were selected, involving 75 people from 2 units in five systems, including finance, supervision, industry and commerce, and public security, including 22 cadres at or above the department level. By December 1th, 15,399 lottery expressions of internal interception of private purchases have been identified, involving 4,18 financial system cadres and employees. Among them, employees in the financial system bought nearly 65, copies privately, duty and supervision personnel bought more than 2, copies privately, and bought nearly 2, copies for related households. The 62 key clues of complaints from the masses have now been verified in 57 cases with 68 people, and 38 cases are true or partially true, involving 43 people. Among them, there are 11 department-level cadres, 22 department-level cadres and 1 general cadres and workers; 23 people in party member; There are 3 people in the financial system, 8 people in the industrial and commercial system, 4 people in the public security system and 1 person in the enterprise unit. In the end, 9 people were publicly dealt with as "heinous crimes", 7 of whom were heads of units or departments.
Inspiration from subscription card storm: subscription card is a miracle created by China stock market. Some people described the stock market at that time as a stupid action. The stock is speculated higher and higher until it is infinitely high, to see who is the most stupid to receive the last stick. As Yang Baiwan once said, the fools in China stock market are like leeks in the field, which grow after cutting one crop.
the first generation of investors did make a lot of money, but many of them have disappeared today. Because most of the first generation of investors' financial expertise is not very high, many people follow the trend. There are some cases in which some companies have successfully developed or retained some assets to live a comfortable life, but most people get rich overnight and then gradually lose all their money or use it up. Now it is not much different from ordinary citizens. The first generation of shareholders became rich but quickly disappeared because of the shareholders themselves, policies and opportunities, as well as the special background of China at that time. It was a comprehensive product of an era. Today, it seems that these experiences have great enlightenment to the development of China's stock market.
the "8.1 incident" triggered the plunge of Shanghai and Shenzhen stock markets. On Monday, August 1th, the Shanghai stock market fell below 1 points as soon as it opened, and the psychological defense line that many parties have been struggling to operate for months collapsed. On the 11th, the market dropped by another 1 points, with a drop of more than 1% that day. On the 12th, selling came in an avalanche, and the index fell to 59 points at lunch break to close at 86 points. In the end, the Shanghai Composite Index plunged from 964 points on August 1th to 781 points on August 12th, with a drop of 19%.
accordingly, the closing point of Shenzhen constituent stock index on Friday, August 7th was 2814 points, on August 1th it was 2883 points, and on the 11th it was 2733 points, down by 15 points. It fell again on the 12 th and closed at 2727 points; On the 13th, the market closed down to 2644 points, and * * * dropped to 239 points. The Shenzhen stock index plunged from 31 points on August 1th to 285 points on August 14th, with a decrease of 8.1%. At the same time, it was badly hurt. Since then, the Shenzhen Stock Index has plummeted until the stock market price of 164 points on November 23, and it stopped falling and rebounded.
Liu Hongru was the first chairman of the China Securities Regulatory Commission. At the end of 2, he recalled the situation when the stock market was first established. After February, 1992, under the instruction of the State Council, the Commission for Restructuring the Economy and the relevant ministries and commissions formulated 13 supporting regulations for joint-stock pilot projects. Subsequently, joint-stock companies in various places developed rapidly and a new round of stock fever appeared. On August 11th of that year, the "August 1th Incident" happened in Shenzhen. the State Council made an emergency response and decided to set up a special securities regulatory agency. As a result, the the State Council Securities Commission composed of 13 ministries and commissions was established, and the China Securities Commission was established to be responsible for daily supervision and decision implementation.
At that time, Zhu Rongji, the vice premier of the State Council, approached Liu Hongru and told him his decision to be the chairman of the CSRC. In October, Liu Hongru took office and began to create the CSRC. If it is said that the "August 1th Incident" gave birth to the China Securities Regulatory Commission, then it can be said that it is the strong desire of investors to get rich that has made China's capital market mature and grow, which is undoubtedly full of the painstaking efforts and sweat of many investors, and it is worth taking good care of and cherishing. The stock market is depressed and investors have suffered heavy losses, which should definitely not be a "normal state" of the stock market.
Yuan Ye's suspension
Shenzhen Yuan Ye Industrial Co., Ltd. is one of the earliest listed companies in Shenzhen. There are serious problems such as false capital investment, false capital verification certificate provided by accounting firms, out-of-control management and chaotic accounts. On July 7th, Shenzhen Stock Exchange announced that trading of Yuan Ye shares was suspended. This is the first stock in China stock market to be suspended. On September 5th, Yuan Ye Company held an extraordinary shareholders' meeting and decided to change its name to Shenzhen Century Xingyuan Co., Ltd. Resumption of trading on January 3, 1994.
Saving the market in August
In late July of p>1994, the Shanghai Composite Index was 335 points, and the Shenzhen Composite Index had fallen below the 1-point base to 96 points; The turnover of the two cities is only 6 million yuan. On July 3th, the China Securities Regulatory Commission issued an announcement, clarifying that the issuance and listing of various new shares will be suspended during the year, except for the issued unlisted shares. Moreover, the issuance and listing of enterprises that have published prospectus announcements in newspapers have also been postponed. After the introduction of this measure, the market response was very enthusiastic. After entering August, the Shanghai and Shenzhen stock markets rebounded strongly, which led to the rescue of the market in August.
Baoyan Storm
On September 3th, 1993, Shenzhen Baoan (Group) Shanghai Company reported and announced to China Securities Regulatory Commission and Shanghai Stock Exchange that it had held more than 5% shares of common stock issued by Yanzhong Industry. This is the first acquisition case in China stock market.
The "327" treasury bond futures incident
On February 23rd, 1995, stimulated by new bond issuance, value preservation and interest discount, and combined with the illegal joint operation of Universal Securities, a large number of orders were thrown to suppress the price after exceeding the limit, which caused great confusion in the market. Ten minutes before the market closed, the price was suppressed by a huge amount of selling orders, which made the variety "327" change from soaring in 3 yuan to falling by .71 yuan. However, after the market closed, the Shanghai Stock Exchange announced that the last-minute trading was invalid and cancelled. On May 17, 1995, China Securities Regulatory Commission issued an urgent notice, announcing the suspension of the pilot trading of treasury bonds futures.
changhong incident
on August 21st, 1995, some investors found that the bonus shares sent by Sichuan changhong legal person shares could be sold, and more uninformed shareholders suffered huge losses because they gave up the qualification for transfer, and the reaction was very strong. China Securities Regulatory Commission immediately stepped in to stop the transfer of bonus shares, and Changhong shares were suspended. After investigation, this was an event that deliberately harmed the rights and interests of investors: the Shanghai Stock Exchange illegally approved Changhong's transfer of bonus shares for listing; The lead underwriter, Economic Development Company, and the deputy lead underwriter, Shanghai Financial Securities Company, wantonly sold the bonus shares obtained from the underwriting and resale for profit; Changhong company has also violated the rules. After more than two months of investigation and handling by the CSRC, Changhong shares resumed trading.
Qiong Minyuan Incident
On January 22, 1997, Qiong Minyuan's 1996 annual report took the lead in "making a debut": it changed from junk stocks to "blue chips" sought after by investors, and with the theme of "1 get three free", it replaced Shenzhen Development and became the leader of Shenzhen Stock Exchange. Its share price, like a broken kite, rose from 2.8 yuan on April 1, 1996 to 26.18 yuan in January, 1997, a 16-fold increase in less than a year! The sudden change of Qiong Minyuan's performance has aroused the doubts of management and investors. On April 29, 1998, after a year-long investigation by an investigation team composed of relevant departments, the contents of Qiong Minyuan's 1996 annual report were seriously inaccurate. In November 1998, the Beijing No.1 Intermediate People's Court made a first-instance judgment on the case of Qiong Minyuan: Ma Yuhe, the former chairman of Qiong Minyuan, was sentenced to three years in prison for providing false financial and accounting reports; Ban Wenzhao, an accountant employed by the company, was also sentenced to two years' imprisonment and suspended for two years on the same charge. It is reported that this is the first case of using the securities crime clause after the implementation of the new criminal law in October 1997. While investigating the case, the regulatory authorities started the reorganization of Qiongminyuan.
Hongguang incident
Hongguang Industry went public by cheating on June 6, 1997, and continued to cheat after listing: First, fabricating false profits to defraud the listing qualification; Second, underreporting losses and deceiving investors; The third is to conceal major issues; The fourth is to change the investment of raised funds without disclosure. In this regard, the China Securities Regulatory Commission imposed penalties on the former chairman, former general manager, former vice minister of finance and Hongguang Company, as well as related intermediaries and responsible personnel such as accounting firms, law firms, asset appraisers' firms and listing referees, and the main person in charge of Hongguang incident was handed over to judicial organs for handling.
The frequent occurrence of the above-mentioned major events has led to many discussions inside and outside the securities industry. Some people are at a loss, while others are worried. In particular, the "8.1" incident, as an important event in the early days of China stock market, had a far-reaching impact on the development of China stock market. After the "8.1" storm, the State Council immediately decided to set up a special securities regulatory agency. On December 19th, 1995, Comrade Zhu Rongji, who has been paying close attention to the growth process of China's securities market, made an important speech that profoundly influenced the future direction of the securities market when he visited the Shanghai Stock Exchange, and put forward the eight-character policy of "legal system, supervision, self-discipline and standardization". The "eight-character policy" has become the guiding principle for the development of China's securities market, which has had a great impact on the development of China's securities market.