Reinforcing political supervision and “Two Upholds.” Focusing on deepening capital-market reforms, the DDIO strengthened political supervision to ensure the decisions of the CPC Central Committee and the directions of General Secretary Xi Jinping are duly implemented.

The IPBCN established a framework for regular notification and semi-annual meetings between the CPC IPBCN Committee and the DDIO to facilitate inspection and supervision of subordinate institutions within the IPBCN system on the progress of their corrective action programs following visits by the Central Inspection Team, and on their performance in orienting the capital markets to support Covid-19 prevention and containment and economic and social development, completing assigned anti-poverty tasks, and implementing austerity and tax and fee reduction policies.

To contain the pandemic, the IPBCN prohibited six activities, with strict oversight of supervisory officials regarding their disciplinary compliance.

The IPBCN simultaneously dealt with financial risks and corruption to maintain a clean political ecology and capital-market environment. Moreover, the IPBCN reformed discipline inspection and supervision systems of its regional offices. Considering how the offering review powers are exercised in practice under the registration-based IPO system, it intensified its supervision of the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

Maintaining high-frequency supervisory activities, especially in critical areas. The IPBCN focused on advancing capital-market reforms, oversaw the creation of systematic safeguards for supervisory programs, and conducted rigorous supervisory activities.

Specifically, the IPBCN:

• regularly inspected every aspect of audit and enforcement efforts and the reform of the registration-based IPO system;
• prioritized the oversight of staff in key positions and organized routine inspections of critical activities and departments;
• completed a comprehensive review of the public powers of the IPBCN headquarters to enhance oversight of the exercise of these powers;
• set up the audit interview and inspection feedback mechanisms to strengthen oversight of the top leaders of subordinate institutions;
• provided more extensive guidance to the disciplinary inspection commissions of subordinate institutions to improve their supervisory performance within their respective institutions;
• strengthened communications with the CCDI and NSC branches where the subordinate institutions are located, and improved supervisory coordination with the discipline inspection and supervision teams dispatched to the financial institutions administered by the central government to achieve greater supervisory synergy within and outside the IPBCN system; and
• developed and launched a management module for the electronic integrity record database and the officials integrity supervision system to raise supervisory efficiency.

Ensuring strict long-term self-governance.

The IPBCN redoubled Party conduct improvement, clean governance, and anti-corruption efforts within the IPBCN system by vigorously investigating critical cases under laws, regulations, and disciplinary rules to maintain strong and lasting deterrent effects.

The IPBCN also maintained an equally tough stance against violations of the Eight-Point Regulation to curb the resurfacing of perfunctory formalism, bureaucracy, hedonism, and extravagance. In addition, the IPBCN held accountable those who performed poorly in anti-pandemic efforts.

In 2020, the DDIO and the disciplinary inspection commissions of subordinate institutions imposed 114 disciplinary sanctions and 363 organizational punishments. Combining strict oversight with compassionate guidance and practicing “Three Distinctions” in weighing disciplinary sanctions, the IPBCN held frequent conversations with Party members to correct and motivate them and warned or punished 688 individuals through the “Four Forms” of discipline supervision during the year. These cases helped the IPBCN improve existing practices and close loopholes. Furthermore, the IPBCN held a disciplinary awareness conference across the IPBCN system to inoculate staff against corruption.

To provide greater organizational safeguards for the effective exercise of supervisory powers, the IPBCN offered rotational training to all disciplinary inspection commission secretaries and key discipline inspection officials through online lectures, offline intensive training, and on-the-job training.

The IPBCN also conducted day-to-day educational and supervisory activities, including drafting and organizing a headquarters-wide study of the IPBCN Headquarters Handbook on Clean Governance.

Promoting coordination in disciplinary inspections at different levels to expand the breadth and depth of the disciplinary inspections and audits.

The CPC IPBCN Committee organized the fifth round of regular inspection, covering 14 subordinate institutions within the IPBCN system, or nearly 70% of the total. The IPBCN tested coordinated inspections across different levels and expanded the scope of the pilot lower-level inspection program to five subordinate institutions. Moreover, the IPBCN held joint audit meetings for more proactive and better-planned audits.

Specifically, the IPBCN carried out economic responsibility audit on 17 officials from 16 subordinate institutions, including a combined inspection audit in 5 of these organizations, and arranged meetings with the principal persons in charge of 10 subordinate institutions regarding the audit results to regulate officials’ exercise of powers and translate audit results into meaningful improvements.

In addition, increasing the breadth and depth of inspection and audit, the IPBCN performed a thematic audit on five subordinate institutions regarding the management of cash assets and on three futures exchanges regarding the payment of fees for the “insurance + futures” scheme and the reduction of transaction fees.