ISSUING AUTHORITY:

China Securities Regulatory Commission

DATE OF ISSUANCE:

December 6, 2025

EFFECTIVE DATE:

December 6, 2025

To implement the mandates of the Central Financial Work Conference and the State Council’s "National Nine Provisions", the CSRC has released the Draft Regulations for public consultation. This legislative move aims to elevate existing regulatory practices into a comprehensive administrative regulation, providing a stronger legal basis for capital market supervision.

The Draft, consisting of eight chapters and 74 articles, introduces critical requirements in five areas relevant to our corporate and securities practice:

1. Corporate Governance: The Draft tightens the statutory obligations of the "key minority" (controlling shareholders, actual controllers, D&Os). It emphasizes the independence of the listed entity and effective internal checks and balances.

2. Anti-Fraud Enforcement: There is a significant escalation in combatting financial fabrication. The rules propose strict liability for internal oversight failures and expressly prohibit third-party intermediaries from aiding or abetting fraudulent disclosures.

3. M&A and Restructuring: The text refines protocols for acquisitions, emphasizing the "gatekeeper" duties of financial advisors while legally supporting industrial consolidation and transformation.

4. Investor Protection & Value: The Draft codifies requirements for "market value management," cash dividends, and share repurchases. Notably, it introduces safeguards against the use of bankruptcy or voluntary delisting to evade liability or prejudice investor interests.

5. Legal Liability: It establishes specific penalties for fund misappropriation, illicit guarantees, and non-cooperation with regulatory supervision.

Reference:

中国证监会就《上市公司监督管理条例（公开征求意见稿）》公开征求意见