Listed pharmaceutical companies have violated more than 300 violations in ten years.

Medical Network May 19 hearing May 14 evening, at 5.15 on the National Investor Protection Awareness Day eve, the Commission announced the administrative penalty to the US pharmaceutical: Health America Pharmaceutical decided to order correction, given a warning, impose a 60 ten thousand yuan fines, sentenced to 21 responsible persons ranging from 900,000 to 100,000 yuan fine, take 10 years to life security market measures six primary responsibilitythe first time in eight months, the market has come to the United States and 600,000 yuan Kang "top grid penalty" seems to feel too lightFrom the capital market point of view, Hong Mei immediately daily limit, but also that the punishment is much lighter than we expectedAlthough the Commission indicates that the response later: When involved violations occur, "Securities Act" has not been modified, has been fined 600,000 yuan is the upper limit prescribed by law; the new "Securities Act" in 2020 March 1 implementation, the cost of illegal has improved application of the law "from the old and lighter." But it is undeniable illegal cost is too low in our listing system problems to be solvedfrom listed companies in the industry for nearly a decadeviolations (including fines, administrative penalties, warning, ordered to make corrections, public censure, criminal penalties) point of view, it occurred 10 years 332 from the violations, and in recent years the number of cases showed significant increasing trendAs of May 2020, the number 24 has been a violation occursThis aspect can reflect our supervision of listed companies is increasing; on the other hand, are gradually exposed the listed companies in China operations and quality of service issuesChart 1the pharmaceutical industry for nearly a decade the number of violationsSource: Flush,industrial capital in health research centerExhibit 2 for nearly a decade the pharmaceutical industry violations the number of sub-sectors distributionsource: flush, industrial capital in Hong Research Center (Note: some of the cases were not flush segment classification, it retains some of the first classification)from punishment type of view, reprimand, ordered to make corrections, fines and administrative penalties, warning of a larger number of casesChart 3the pharmaceutical industry for nearly a decade violations punished type Source: flush, Capital Research Center in Hong industry for nearly a decade ST the company occurred 21, revocation occurred ST 22, the side reflects delisting not stringent enough, delisting system is not normalized Figure 4 is implemented nearly a decade ST pharmaceutical companies Source: Flush, industrial capital in health research center Exhibit 5 for nearly a decade has been revoked ST pharmaceutical companies source: flush can be seen in the same situation, in health research center from industrial capital of China in recent years of illegal pharmaceutical companies, ST and so on, China's pharmaceutical listed companies there are more problems operating integrity and quality of service The current standards and penalties are not stringent enough, delisting system has not yet normalized A virtuous cycle of capital markets, there is a need to have into the survival of the fittest, so that the delisting normalization; but also increase the cost of illegal , the relevant enterprises to deter, in order to improve the quality of listed companies in China business .