On the evening of September 15, Jingyuan Environmental Protection (688096) announced that Ji Xianhua, a director and senior executive of the company, had recently received the "Decision of Jiangsu Securities Regulatory Bureau on Issuing Warning Letter Measures against Ji Xianhua" due to illegal reduction of holdings.

According to the content of the "Warning Letter", after investigation, Ji Xianhua, as a director and senior executive of Jingyuan Environmental Protection, directly holds 6.4624 million shares of the company. During the period from June 30 to July 6, Ji Xianhua reduced his holdings of 1.6758 million shares of the company directly held, exceeding 25% of the total number of shares directly held by the company, in violation of relevant regulations. In this regard, the Jiangsu Securities Regulatory Bureau decided to take the regulatory measures of issuing a warning letter to Ji Xianhua, which was recorded in the integrity file of the securities and futures market.

specifically, among the shares that Ji Xianhua should reduce this time, the shares that should be reduced through heyuan investment did not reduce through it, but reduced from the shares directly held, resulting in Ji Xianhua's direct reduction of the company's shares accounting for 25.931 of the total shares directly held by him, exceeding 25% of the total shares directly held by him, and the excess number is 60199 shares.

Jingyuan Environmental Protection said that the reduction violated the provisions of relevant laws and regulations, departmental rules and normative documents.

the warning letter shows that Ji Xianhua has turned over the full amount of 396500 yuan from the illegal reduction of holdings to the company on July 19, 2023.

The China Securities Regulatory Commission recently issued new regulations to further regulate the reduction of shares. The ''Further Regulating Share Reduction Behaviors'' issued by the China Securities Regulatory Commission on August 27 clearly pointed out that listed companies have broken or broken net, or have not paid cash dividends in the past three years, and the accumulated cash dividends are lower than the average annual net profit of the last three years If 30%, the controlling shareholder and actual controller shall not reduce the company's shares through the secondary market.

According to the statistics of the Securities Times, as of September 15, a total of 49 listed companies have disclosed the announcement of illegal reduction of shareholders or directors, supervisors and senior executives. Most shareholders or directors, supervisors and senior executives stated in the announcement that the illegal reduction of holdings was mostly caused by misoperation or inadequate understanding of the rules, and they apologized to listed companies and investors.

At present, the CSRC is further stepping up its crackdown on illegal reduction. On the evening of the same day when Jingyuan Environmental Protection issued the warning letter, the CSRC reported the progress of the investigation into the case of Fan Yi and his concerted actors illegally reducing their holdings of "My Home" shares, pointing out that Yu Fan Yi and his concerted actors did not stop trading according to law when the reduction ratio reached 5%, and the subsequent illegal transaction amount was 0.107 billion yuan and the illegal income was 16.53 million yuan. The CSRC intends to confiscate the above-mentioned illegal income from Fan Yi and his concerted action according to law and impose a strict fine of 32.95 million yuan.

The China Securities Regulatory Commission stated that shareholders holding more than 5% of shares are important shareholders of listed companies, have special responsibilities for the company, and are the "key minority" in the company's operation, development and governance ". The new "Securities Law" further strengthens the regulation of shareholders' reduction behavior, and stipulates special obligations in terms of buying and selling, information disclosure, etc.

In the next step, the China Securities Regulatory Commission will resolutely implement the Party Central Committee's decision and deployment of "to activate the capital market and boost investor confidence", step up efforts to improve the laws and regulations on the reduction of shares, and further increase the crackdown on violations of the reduction of shares. Intensity, quick investigation and punishment, heavy punishment, found together, investigation and punishment together, so that those who dare to violate the law will be punished and pay a heavy price.