The China Securities Regulatory Commission (CSRC) published an update on its progress in addressing findings from a routine Central inspection of the CSRC Party committee conducted between 15 April and 20 July 2024, with feedback delivered on 19 October 2024. The report sets out actions taken during the concentrated rectification period, areas requiring longer-term remediation, and the supervision arrangements led by the Discipline Inspection and Supervision Group stationed at the CSRC. Steps described include strengthening internal accountability and closed-loop processes for implementing major policy instructions and reporting requirements, and coordinating rectification work across system entities including the Shanghai and Shenzhen stock exchanges. On market policy and regulation, the CSRC highlights measures to encourage longer-term funds into equities, development of equity public funds, issuance of listed company market value management guidance (including encouraging multiple dividends and buybacks), and a strengthened investor protection framework that adds small and medium investor protection review to rulemaking and advances mechanisms such as mandatory delisting coordination, advance compensation implementation planning, and improved handling of investor complaints. The update also points to capital market reform actions, including tighter gatekeeping under the registration-based IPO regime through stronger intermediary accountability and rolling on-site inspections, revisions to issuance and underwriting rules, support for technology-focused listings and M&A activity, futures product rollout, and improved cross-department coordination on overseas listing filings. On enforcement and risk control, measures include a multi-agency framework to deter and punish financial fraud, sanctions for illegal share reductions (including required repurchase and surrender of gains), new baseline rules for administrative penalty discretion, increased technology-enabled supervision, enhanced oversight cooperation mechanisms, strengthened regulation of high-frequency quantitative and program trading through exchange implementation rules, development of an over-the-counter derivatives supervision mechanism, and cyber and operational resilience checks including stress testing. The CSRC says it will move to a normalised, long-term rectification approach, deepen reforms across key boards and market segments, continue work to increase the share of medium- and long-term funding, strengthen steadiness mechanisms and enforcement capacity, and issue further investor protection measures. Public supervision and feedback on the rectification progress will be accepted for 15 working days through 16 October 2025.
China Securities Regulatory Commission 2025-09-22
China Securities Regulatory Commission publishes progress report on rectifying issues raised by Central inspection
The China Securities Regulatory Commission (CSRC) reported progress after a Central inspection, detailing actions taken and areas needing long-term remediation. Key measures include enhancing internal accountability, encouraging long-term equity investments, and strengthening investor protection. The CSRC also outlined reforms in IPO regulation, enforcement against financial fraud, and improvements in cross-department coordination for overseas listings.