The China Securities Regulatory Commission (CSRC) published a draft Listed Company Supervision and Administration Regulation for public consultation, aiming to further complete the regulatory framework for listed companies and raise listed company quality through strengthened governance, disclosure oversight, investor protection and enforcement. The draft consists of eight chapters and 74 articles. It would tighten governance requirements and regulate the conduct of controlling shareholders, actual controllers, directors and senior management, while strengthening information disclosure supervision with a focus on tackling financial statement fraud through improved internal checks, accountability and compensation mechanisms, and a prohibition on third parties assisting fraud. The proposal also refines rules for takeovers and major asset restructurings, including clearer duties and independence requirements for financial advisers, and introduces explicit investor protection expectations on market value management, cash dividends and share buybacks, alongside arrangements to protect investors in voluntary delistings and measures to prevent issuers from evading delisting or using bankruptcy reorganisation to harm investor interests. Enforcement provisions would be detailed further, including dedicated penalty clauses for fund appropriation, improper guarantees and assisting fraud. The CSRC will review feedback received during the consultation and revise the draft accordingly.

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