Professor He Jia Attended Expert Demonstration on Advance Compensation of Xintai Electric Fraud I
Date: 2018-09-26

On May 7, 2017, Professor He Jia of the Department of Finance attended the expert demonstration on advance compensation of Xintai Electric fraud issuance in Beijing.

After the Xintai Electric fraud issuance, the sponsor institution and the lead underwriter Xingye Securities decided to set up the advance compensation fund to pay for the losses suffered by qualified investors of Xintai Electric, and proposed to deduct the losses caused by the securities market system risks based on Article 19 of "Several Stipulations Concerning the Trial of Civil Compensation Cases Owing to False Statements in the Security Market" issued by the Supreme People’s Court of the People’s Republic of China.

    The purpose of the demonstration was that the advance compensation scheme should comply with the true and fair principle in accordance with the law, and take into account the legitimate interests of the bilateral investors of Xintai Electric and Industrial Securities. It demonstrated the legality and reasonableness of the advance compensation practice of deducting the losses caused by the securities market system risks.