In the first half of this year, guided by the concept of "cracking down on illegal and irregular activities quickly, accurately, and harshly, targeting not only early, small, and early signs, but also big, bad, and key violations", regulators targeted the governance of key illegal and irregular behaviors in the capital market such as financial fraud, credit reporting violations, short-term trading, and fund occupation. The compliance awareness of market entities has significantly improved, and the market ecology continues to purify. According to data from the official websites of the Shanghai, Shenzhen, and North stock exchanges, in the first half of 2025, the three major stock exchanges in Shanghai, Shenzhen, and North will take regulatory measures against 258 market violations committed by 160 A-share listed companies. Compared with the same period last year, the number of companies involved has decreased by 70.26%, and the number of illegal and irregular behaviors has decreased by 60.91%. Tian Lihui, a finance professor at Nankai University, stated in an interview with reporters that by accurately handling illegal and irregular behaviors, regulatory agencies have strengthened their supervision of the market, improved the effectiveness of market rule enforcement, reduced the space for illegal operations, and thus improved the standardization level of the market. With the further regulation of market order and the enhancement of investor confidence, the capital market will become more mature and rational, and the proportion of long-term funds and institutional investors will gradually increase. The market will develop towards a healthier and more stable direction. From the perspective of regulatory practice in the first half of the year, the illegal and irregular disclosure of information remains a persistent problem in the capital market. According to the data, among the 258 illegal and irregular behaviors mentioned above, 101 of them involved illegal and irregular information disclosure, accounting for 39.15%, firmly ranking first among the types of illegal and irregular behaviors. Specifically, the violations exhibit diverse characteristics: there are traditional "lesions" such as distorted data in regular reports and delayed disclosure, as well as hidden risk points such as failure to timely disclose major issues in the company's daily governance and concealment of related party transactions, exposing deep-seated problems of weak rule awareness and ineffective internal control mechanisms among some market entities. It is worth noting that some companies have engaged in long-term systematic disclosure of illegal and irregular behaviors. On January 27th, the Shanghai Stock Exchange issued a notice criticizing regulatory measures against a listed company, targeting its continuous occurrence of related party transactions for many years, but failing to comply with the relevant procedures for related party transaction review and timely disclosure. Lawyer Zhu Yiyi from Guohao Law Firm (Shanghai) told reporters that for investors, information disclosure is an important basis for them to understand and evaluate the value of the company, and violating disclosure regulations will greatly affect investor confidence; For the market, violating disclosure regulations can lead to information asymmetry and distortion in the securities market, thereby reducing market transparency and disrupting fair market order. Therefore, how to solve this "stubborn disease" has become a key issue in purifying the market ecology. In Tian Lihui's view, future regulation needs to strengthen regulatory construction, continuously improve relevant laws and regulations on information disclosure, clarify accountability mechanisms, and increase punishment for violations; Advanced technologies such as big data and artificial intelligence can be utilized to monitor the information disclosure of listed companies in real-time, promptly identify and correct problems; Further education and training are needed to enhance the information disclosure awareness of the company's management team, and regular training courses should be held to ensure that they are aware of the latest regulatory requirements. In addition, the issue of "delaying rectification" is also worth paying attention to. For example, in February, the Shanghai Stock Exchange took regulatory measures against two listed companies, one of which disclosed relevant clarifications and risk warning announcements after multiple regulatory supervisions; The other company has yet to complete the rectification of non operational use of company funds by the original controlling shareholder. In April, the Shanghai Stock Exchange once again took public condemnation measures against a listed company, pointing out that it had failed to truthfully disclose the non operating capital occupation of its controlling shareholder after multiple regulatory supervisions. The continuous close attention of regulators to new issues such as "stubborn problems" such as information disclosure and "delayed rectification" not only demonstrates the determination of "zero tolerance", but also reflects the complexity of capital market governance. Tian Lihui stated that regulatory authorities need to continue to adhere to "strict supervision and management", improve relevant laws and regulations, and strengthen law enforcement efforts; At the same time, strengthen communication with all parties in the market, respond promptly to market concerns, and enhance regulatory transparency and credibility. Targeted measures to improve regulatory accuracy. In the first half of this year, regulatory authorities adhered to the working principle of "catching early, catching small signs, and cracking down on big, bad, and key issues", continuously improving regulatory accuracy through targeted measures. This not only formed a strong deterrent effect on market violations, but also urged market entities to continuously improve their compliance awareness. Overall, in the first half of the year, the exchange took regulatory measures against 258 cases of market violations, including 116 regulatory work letters, 21 regulatory warnings, 59 criticism notices, 49 public condemnations, and 13 disciplinary actions against directors, supervisors, and senior management personnel who were deemed unsuitable during the public recognition period. Among them, 13 disciplinary actions that were publicly deemed unsuitable for serving as directors, supervisors, and senior executives all pointed to the issue of false financial reporting in listed companies. This fully demonstrates that the regulatory authorities are cracking down on financial fraud and other serious disruptions to market order with a "zero tolerance" attitude. By accurately targeting the "cancer" in the capital market, they are sending a strong signal of "cracking down on exposed cases and being strict when cracking down". The China Securities Regulatory Commission (CSRC) has recently reiterated its commitment to pursuing both the ringleaders and accomplices, further strengthening the accountability of those responsible for fraud and those who cooperate with fraud. By strengthening the administrative, civil, and criminal accountability system, the CSRC will comprehensively punish the planners, organizers, implementers, and collaborators of financial fraud, and resolutely break down the fraud interest chain and "ecosystem". In addition, in addition to imposing heavy penalties on key illegal and irregular behaviors such as financial fraud, regulatory authorities have also strengthened the "early detection, small detection, and early detection" measures to curb potential risks and effectively prevent "small problems" from evolving into "big risks". For example, on January 10th, the Shenzhen Stock Exchange took regulatory measures against a listed company, directly pointing out the compliance flaws in its extraordinary shareholders' meeting - the law firm's inadequate verification of shareholders attending the meeting, the non-standard monitoring process, and the lack of rigorous expression in the legal opinion issued. Regulatory authorities can avoid the accumulation and escalation of compliance risks by promptly correcting procedural flaws. In Zhu Yiyi's view, precise regulatory measures have increased the cost of illegal activities, curbed illegal and irregular behavior in the securities market, maintained the stability of market order, improved market transparency, thereby enhancing investor confidence and increasing market trading activity. In the long run, this will help balance market risks and returns, safeguard the legitimate rights and interests of investors, and ensure the stable and healthy development of the market. (New Society)