A Study on Violations of Information Disclosure by Listed Companies Against the Background of the New 'Nine National Policies': Taking Vtron Group Co., Ltd. as an Example

Abstract

This paper examines the implementation of China's new "Nine National Policies," introduced in April 2024, aimed at enhancing the stability and healthy development of the capital market amidst significant market fluctuations. The policies focus on strengthening supervision, preventing risks, and improving the regulatory framework for listed companies, including stricter issuance and listing access, continuous oversight, and enhanced delisting mechanisms. A notable outcome has been the investigation or detention of numerous listed companies and their controllers, with Vtron Group Co., Ltd. serving as a case study. Using case analysis and GONE theory, the study details the characteristics of the policies, Vtron’s violations of information disclosure rules, and the motivations and consequences of these violations. It finds that while the number of punished companies has risen, violations have become more covert and diverse. Despite progress, regulatory enforcement by the China Securities Regulatory Commission remains inadequate. Nonetheless, the policies have significantly advanced the capital market’s development. Future efforts will require stricter measures and further research as China continues stabilizing its economy and financial markets.