The China Securities Regulatory Commission published a review of its 2024 securities and futures enforcement, reporting higher volumes of sanctions, market bans and criminal referrals and a continued focus on major misconduct including fraudulent issuance, financial misreporting, insider trading and market manipulation. In 2024 it investigated 739 cases, issued 592 administrative penalty decisions (up 10% year on year), sanctioned 1,327 responsible persons and entities (up 24%), imposed 118 market bans (up 15%), and referred 178 suspected criminal cases and leads to public security authorities (up 51%). Information disclosure violations were the largest case type (249, 34%), followed by intermediary failures to exercise due diligence (95, 13%), insider trading (178, 24%) and market manipulation (71, 10%). On keeping the listing “entry gate” tight, the CSRC conducted on-site inspections or supervision of 87 IPO applicants, pursued five fraudulent-issuance cases, and fined applicants Gaodesin and Huada Bio CNY 32.7m and CNY 11.5m for submitting false financial data. Evergrande Real Estate was fined CNY 4.175bn for fraudulent bond issuance and information disclosure violations, while its chairman and controlling shareholder Xu Jiayin was fined CNY 47m and banned from the securities market for life. Financial falsification enforcement covered 128 cases, including a CNY 34m penalty on Dr Peng for inflating profits and assets through impairment accounting, and investigations into two listed companies alleged to have assisted fraud in the Zijing Storage case. In M&A and restructuring-related trading abuses, 35 cases were handled, including an insider trading case with fines and confiscations exceeding CNY 100m and a CNY 61.56m penalty on a former Hengrun Shares chairman for hyping a cross-industry “computing power” pivot. On delisting, 55 listed companies exited the market, and violations at 35 delisted companies and responsible persons were pursued, including penalties and a police referral in the Meishang Ecological case and a CNY 115m fine and confiscation plus a lifetime ban for *ST Jinzhou’s former chairman over a scheme to evade face-value delisting. Accountability actions against controlling shareholders and executives covered 989 people with CNY 2.81bn in fines and confiscations, while enforcement on gatekeepers led to CNY 673m in fines and confiscations and six-month business suspensions for four accounting firms and one securities company, including a CNY 325m fine on PwC in the Evergrande case. To support broader market governance, the CSRC cited enforcement against emerging misconduct, including three cases of insider trading using OTC stock options and fines and confiscations of CNY 334m plus lifetime bans against “stock market black-mouth” price manipulators. Together with other ministries it helped develop and promote the State Council General Office’s opinion on comprehensive prevention and punishment of capital-market financial fraud and a related special action that produced 61 administrative penalties with CNY 5.157bn in fines and confiscations, 426 responsible persons sanctioned and 65 market bans, with third-party assistance leads transferred to other authorities for handling. It also issued the CSRC Administrative Penalty Discretion Basic Rules, setting six tiers of sanctioning from no penalty to heavier penalties, and said it will continue to strengthen enforcement capacity and use available legal tools to pursue securities and futures violations.

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