China Securities Regulatory Commission sets second half agenda on market stability, tougher enforcement and new futures company rules

The China Securities Regulatory Commission reviewed its first-half regulatory work and set priorities for the second half at a meeting on party building and supervision. The update points to a policy mix aimed at keeping markets stable, improving the resilience of China’s capital markets and advancing reform across stock, fund, bond and futures markets. Key near-term actions include more targeted countercyclical adjustment, increasing the scale and share of long-term funds entering the market, and strengthening policy preparation for global market swings and cross-border risk transmission. The regulatory agenda combines reform, enforcement and risk control. The commission said it will deepen investment and financing reform, preserve fair market order through tougher action against financial fraud, insider trading and market manipulation, tighten oversight of new business activities and expand the use of artificial intelligence in supervision. It also plans to strengthen listed company governance, sustain merger and restructuring activity, complete the securities company "1+N+X" supervisory framework, implement a package of measures for fund company regulation, issue futures company supervisory rules soon and promote more standardized development of private funds. On risk, the commission highlighted the need to protect the security and stability of market infrastructure and to prevent and resolve default risks linked to local government financing platforms and real-estate-related bonds. Alongside these market measures, the meeting called for continued internal rectification, anti-corruption work and stronger leadership and accountability arrangements across the system to support execution of the second-half agenda.