The China Securities Regulatory Commission, at a joint briefing with the Supreme People's Procuratorate, published its first batch of administrative enforcement guiding cases, while the Procuratorate released its 55th batch of guiding cases on securities crimes. The four CSRC cases cover financial statement fraud, fraudulent issuance, insider trading and market manipulation, and are positioned as benchmarks for enforcement standards and penalty calibration. CSRC reported that it handled 739 cases in 2024 and issued 592 penalty decisions, imposing CNY 15.3bn in fines and confiscations, more than double the prior year. It highlighted penalties including a fine of more than CNY 4.0bn in the Evergrande Real Estate financial fraud case and a CNY 441m penalty on the audit firm in coordination with the Ministry of Finance. Enforcement activity included 135 information disclosure cases in 2024, up 17%, and 42 market manipulation cases, with total fines and confiscations of CNY 4.95bn, up 42.2%, alongside 32 suspected manipulation crime cases transferred to police involving 104 suspects. On financial statement fraud, the CSRC cited 61 sanctioned cases, an average penalty of CNY 15.77m, seven cases fined at the statutory maximum, 69 director and senior management market bans, and sanctions on 39 intermediaries including five business suspensions. The guiding cases also illustrate tougher outcomes under the revised Securities Law, including a CNY 86m fine and delisting in a fraudulent issuance and disclosure case and CNY 226m in combined fines and confiscations in an information-based manipulation case. CSRC set out further work to improve detection of misconduct and enforcement efficiency, including wider use of off-site supervision, on-site inspections, public opinion monitoring and enhanced whistleblower rewards, and continued coordination on civil and criminal accountability. The Supreme People's Procuratorate also pointed to continued full-chain prosecution of securities crime and further strengthening of administrative-criminal linkage mechanisms.
China Securities Regulatory Commission 2025-02-21
China Securities Regulatory Commission issues first administrative enforcement guiding cases and reports CNY 15.3bn in 2024 fines and confiscations
The China Securities Regulatory Commission (CSRC) and the Supreme People's Procuratorate released guiding cases on securities enforcement and crimes, highlighting benchmarks for enforcement standards. In 2024, CSRC handled 739 cases, issued 592 penalties totaling CNY 15.3bn, and emphasized significant fines in high-profile cases like Evergrande. The CSRC aims to enhance misconduct detection and enforcement efficiency through improved supervision and coordination with accountability mechanisms.