The China Securities Regulatory Commission convened a cross-department meeting on advancing the capital market’s integrated system for preventing and punishing financial fraud, bringing together judicial, law enforcement, fiscal, central bank and other government bodies. The meeting reviewed implementation of the July 2024 policy opinion on strengthening the response to financial fraud in the capital market and concluded that the framework has entered a critical stage of deeper implementation. Priorities set out at the meeting were to strengthen institutional and legal support, improve coordination across administrative, criminal and civil enforcement, intensify action against both fraudulent issuers and third parties that assist fraud, and launch a new round of corporate governance work to strengthen internal restraints. The progress update emphasized tougher multi-channel accountability since 2024. The commission said it had investigated 159 financial fraud cases, issued 111 administrative penalties and imposed CNY 8.1 billion in fines and confiscations. In 43 cases, controlling shareholders and actual controllers were held seriously accountable, while third parties that cooperated in fraud were punished as joint participants in administrative violations. The authorities also transferred 112 suspected criminal leads to public security organs, supported special representative litigation for harmed investors in cases including Jintongling, Meishang Ecology and Jinzhou Port, and pursued accountability for intermediaries. In addition, 18 companies with serious fraud were found to have substantively triggered mandatory delisting for major violations, and 91 already-delisted companies were placed under investigation to prevent delisting from ending liability. Next steps discussed at the meeting included pushing forward relevant laws and regulations, deepening coordination between administrative and criminal handling of major cases, improving mechanisms to support civil liability claims, and building more permanent prevention and control arrangements. The commission said it will continue working with other departments to raise the effectiveness of the integrated anti-fraud framework and support listed company quality and investor protection.
China Securities Regulatory Commission2026-01-05
China Securities Regulatory Commission convenes cross-agency meeting to deepen capital market fraud crackdown, reports 159 cases and CNY 8.1 billion in penalties
The China Securities Regulatory Commission held a cross-agency meeting to deepen implementation of the capital market framework for preventing and punishing financial fraud. It reported 159 investigated cases, 111 administrative penalties and CNY 8.1 billion in fines and confiscations since 2024, alongside stronger action against controlling shareholders, third-party accomplices and intermediaries. The next phase will focus on stronger laws, closer administrative, criminal and civil coordination, and a new round of corporate governance measures.