CSRC: The legal foundation for rational investing, value investing, and long-term investing in the capital market has been further strengthened

People’s Finance News, March 27 - On March 27, Cheng Hehong, Chief Lawyer of the China Securities Regulatory Commission (CSRC), stated at the sub-forum “Creating a Favorable Market Environment, Advocating Long-term Value Investment” of the Boao Forum for Asia Annual Conference 2026 that the draft financial law is currently open for public consultation, which clearly stipulates “support for medium and long-term capital entering the market to enhance the intrinsic stability of the capital market.” The legal foundation for rational investment, value investment, and long-term investment has been further solidified. Cheng Hehong introduced that in the more than two years since the release of the new “Nine National Policies,” the CSRC has formulated and modified more than 50 regulations and normative documents, including the “Administrative Measures for Information Disclosure of Listed Companies,” “Interim Measures for the Management of Share Reduction by Shareholders of Listed Companies,” and “Several Opinions on Strengthening the Protection of Small and Medium Investors in the Capital Market”; in conjunction with relevant parties, issued the “Guiding Opinions on Promoting Medium and Long-term Capital Entering the Market”; published a series of policy documents including “Opinions on Strictly Controlling the Admission Standards for Issuance and Listing to Improve the Quality of Listed Companies from the Source,” “Opinions on Strictly Implementing the Delisting System,” “Opinions on Strengthening the Supervision of Securities Companies and Public Funds to Accelerate the Construction of First-Class Investment Banks and Investment Institutions,” and “Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends of Listed Companies”; promoted the improvement of long-cycle assessment mechanisms for insurance, annuities, and social security funds, advanced public fund reform, further streamlined and optimized the interests binding between fund companies, fund managers, and investors, and improved relevant tax systems, among other measures. “While improving institutional rules, the CSRC, together with public security and judicial authorities, has strengthened regulatory enforcement, severely cracking down on a large number of securities crimes that harm the legal rights and interests of investors, such as fraudulent issuance, financial fraud, market manipulation, and insider trading,” Cheng Hehong stated. In 2025, there were 701 cases of securities and futures violations, with fines and confiscations totaling 15.474 billion yuan, significantly increasing the intensity of penalties; supported and cooperated with judicial authorities to strengthen the trial of securities representative litigation cases, with the judgment in the Jin Tong Ling false statement civil compensation case ordering the company to compensate more than 40,000 investors for investment losses exceeding 770 million yuan, effectively protecting the legal rights and interests of investors.