China Securities Regulatory Commission issued the “Implementation Measures for the Supervision and Administration of the Securities and Futures Market”

The Zhitong Finance App learned that on December 31, the China Securities Regulatory Commission issued the “Implementation Measures for the Supervision and Administration of the Securities and Futures Market”, which mentions that implementing agencies implement supervisory and management measures on parties with any of the following circumstances in accordance with laws, administrative regulations and the provisions of the China Securities Regulatory Commission: (1) there is an illegal act of securities fund futures and derivatives; (2) securities fund futures and derivatives management agencies and private equity fund managers have inadequate governance structures, inadequate internal control, and chaotic management; (3) securities fund futures and derivatives operators, private equity fund risk management control Non-compliance with regulations; (4) Other circumstances stipulated by law, administrative regulations, and the rules and regulations of the China Securities Regulatory Commission. Supervisory and management measures may be applied individually or in combination.

The original text is as follows:

Measures for the Implementation of Securities and Futures Market Supervision and Administration Measures

(Reviewed and approved by the 6th Committee Meeting of the China Securities Regulatory Commission on December 30, 2025)

Article 1 These Measures are formulated in accordance with laws and administrative regulations such as the “Securities Law of the People's Republic of China”, “Securities Investment Fund Law of the People's Republic of China”, “Futures and Derivatives Law of the People's Republic of China”, “Regulations on the Supervision and Administration of Securities Companies”, “Regulations on the Administration of Futures Trading”, and “Regulations on the Supervision and Administration of Private Equity Funds”, “Regulations on the Supervision and Administration of Private Equity Funds”, etc. in order to regulate the implementation of securities and futures market supervision and administration measures, maintain the order of the securities and futures market, prevent risks in the securities and futures market, and protect the legitimate rights and interests of citizens, legal persons and other organizations.

Article 2. The supervisory and administrative measures referred to in these Measures refer to the following measures taken by the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) and its dispatched agencies (hereinafter collectively referred to as implementing agencies) against the parties in accordance with law in order to protect the public interest, promptly correct illegal acts, prevent market risks, and maintain market order:

(1) Order corrections;

(ii) Regulatory discussions;

(3) Issuing a warning letter;

(4) Order a public explanation;

(5) Order regular reports;

(6) Order an increase in the number of internal compliance checks;

(7) Order the punishment of relevant personnel;

(8) Identified as an inappropriate candidate;

(9) Order the replacement of directors, supervisors, senior management personnel, or persons in charge of relevant business departments or branches, etc., or restrict their rights;

(10) Restrict business activities, order the suspension of part or all of the business, and stop approving new business;

(11) Order responsible shareholders to transfer shares, responsible partners to transfer property shares, and restrict responsible shareholders or partners from exercising their rights;

(12) Restrict the distribution of dividends and restrict the payment of remuneration and benefits to directors, supervisors, and senior management;

(13) Restrict the allocation and use of the company's own funds or risk reserves;

(14) Restrict the transfer of property or the creation of other rights in the property;

(15) Other supervisory and administrative measures stipulated by law, administrative regulations, and rules of the China Securities Regulatory Commission.

Article 3. The implementation of supervisory and administrative measures shall be carried out in accordance with the principles of law and in accordance with the procedures stipulated by law, administrative regulations, and the rules and regulations of the China Securities Regulatory Commission. Administrative regulatory documents shall not establish supervisory and administrative measures. The implementation of supervisory and management measures should follow the principle of efficiency, promptly correct illegal acts, prevent the spread of risk and the spread of harmful consequences, and adhere to the combination of risk prevention and control with education. The implementation of supervisory and management measures shall follow the principle of impartiality, be based on facts, and be commensurate with the nature, circumstances, degree of harm and risk of the act.

Article 4. The implementing agency shall, in accordance with laws, administrative regulations and the provisions of the China Securities Regulatory Commission, implement supervisory and administrative measures against parties in any of the following circumstances:

(1) There is an illegal act of securities fund futures and derivatives;

(2) Securities fund futures and derivatives management institutions and private equity fund managers have inadequate governance structures, inadequate internal controls, and chaotic management;

(3) The risk control of securities fund futures and derivatives management institutions and private equity fund managers does not comply with regulations;

(4) Other circumstances stipulated by law, administrative regulations, and the rules and regulations of the China Securities Regulatory Commission. Supervisory and management measures may be applied individually or in combination.

Article 5. The implementing agency shall, in accordance with law, record the collection, decision, delivery, etc. of supervisory and administrative measures in the form of text, audio and video, etc., and file and preserve them.

Article 6 Where supervisory and administrative measures require on-site enforcement, they shall be carried out by law enforcement personnel with administrative enforcement qualifications. Law enforcement personnel shall not be less than two, unless otherwise provided by law or administrative regulations.

Article 7. The implementing agency shall decide on supervisory and administrative measures within six months from the date of initiating the procedure for implementing the supervisory and administrative measures. Where special circumstances require an extension, it shall be reported to the head of the implementing agency for approval. Each extension shall not exceed six months.

Article 8. Where an illegal act is not discovered within two years, the implementing agency shall no longer take supervisory and administrative measures against the illegal act, except where laws, administrative regulations, or the rules of the China Securities Regulatory Commission stipulate otherwise, or where the effects of the illegal act have not been eliminated. The period specified in the preceding paragraph shall be calculated from the date the offense occurred; if the illegal act is continuous or continuing, it shall be calculated from the date the act ends.

Article 9. Staff members of the implementing agency participating in the implementation of supervisory and administrative measures have a direct interest with the person concerned, or where other relationships may affect impartial law enforcement, they shall voluntarily apply for recusal; the parties concerned also have the right to apply for recusal.

The implementing agency shall decide whether to evade based on the application for dismissal, after review, or directly make a decision to dismiss without an application.

Article 10. Implementing supervisory and administrative measures, implementing agencies shall find out the facts and collect evidence comprehensively. Evidence materials obtained by implementing agencies in accordance with law in carrying out other legal duties, evidentiary materials handed over or published by competent authorities, and evidentiary materials obtained in accordance with law through other channels may be used when implementing supervisory and administrative measures if they meet the requirements of authenticity, legality, and relatedness after examination.

Article 11 Where the supervisory and administrative measures stipulated in Article 2 (7) to (14) of these Measures are implemented, the implementing agency shall serve a notice in advance to the person concerned informing the person concerned of the content, facts, reasons and basis of the supervisory and administrative measures to be taken, and informing the person concerned that they have the right to make statements, arguments, etc. in accordance with law. Where a party requests a statement or defense, it shall submit a statement or defense within 5 working days after delivery of the advance notice, and submit a statement or defense within 10 working days after delivery of the notice. Where a party concerned applies in writing to extend the time period for a statement or defense, it may be extended after approval; failure to submit a statement or defense in accordance with the regulations shall be deemed to have waived the right to make a statement or appeal. Where the parties make statements and arguments in accordance with the provisions of the preceding paragraph, the implementing agency shall fully listen to the opinions of the parties and review the facts, reasons, and evidence put forward by the parties; if the facts, reasons, or evidence put forward by the parties are established, the implementing agency shall adopt them.

Article 12 Where adjustments are made to the main facts, reasons, basis, or content of the proposed supervisory and administrative measures to be taken in an advance notice that has already been delivered, the advance notice shall be re-served to the person concerned, except where changes are made in favor of the parties concerned.

Article 13. Implementation of supervisory and administrative measures shall be subject to legal review, except as otherwise provided by law, administrative regulations, and the rules of the China Securities Regulatory Commission.

Article 14 When implementing supervisory and administrative measures, implementing agencies shall prepare decisions on supervisory and administrative measures. The decision on supervisory and administrative measures shall specify the following matters:

(1) The names or names of the parties;

(2) The facts on which the supervisory and management measures are based;

(3) The type and basis of supervisory and management measures;

(4) The manner and period of implementation of supervisory and management measures, and whether rectification and acceptance is required;

(5) The means and time period for applying for administrative review or filing an administrative lawsuit;

(6) The name of the agency implementing the supervisory and management measures and the date of implementation;

(7) Other matters which should be specified in accordance with law.

Decisions on supervisory and administrative measures shall be stamped with the seal of the implementing agency.

Article 15. Supervisory and administrative measures may be disclosed to the public after decisions are made, except those involving state secrets, trade secrets, personal privacy, and which may endanger national security, public safety, economic security, social stability, and market stability after disclosure. Supervisory and management measures requiring disclosure, such as ordering disclosure instructions, should be disclosed to the public after decisions are made.

Article 16 Within seven working days after decisions on supervisory and administrative measures and related documents are made, the implementing agency shall, in principle, deliver them to the parties in accordance with the “Civil Procedure Law of the People's Republic of China” and other relevant regulations. If the parties agree, delivery may be made by fax, email, etc.

Article 17. If the person concerned satisfies the conditions for lifting the restrictions during the period of adopting the supervisory and administrative measures stipulated in Article 2 (7) to (14) of these Measures, the implementing agency may lift the restrictive measures on its own initiative or on the basis of the application of the party concerned. Where restrictive measures are lifted early, or where restrictions are lifted at the end of the limitation period, the parties concerned shall rectify as required and submit a rectification report to the implementing agency. The implementing agency shall promptly carry out the inspection in accordance with the regulations. If the experience acceptance meets the requirements, it shall lift the relevant restrictions imposed on the person concerned within three working days from the date of completion of the inspection.

Article 18 After the supervisory and administrative measures are decided or the restrictions are lifted, the implementing agency may notify the concerned party's unit, competent department, higher level unit, relevant discipline inspection and supervision agency, relevant industry association, or its controlling shareholder, actual controller, etc.

Article 19. If any of the following circumstances occur, the supervisory and administrative measures stipulated in Article 2 (7) to (14) of these Measures will seriously endanger the financial order, affect the steady operation of financial institutions, damage the public interest, or cause other serious harmful consequences, the implementing agency may listen to the opinions of the parties concerned on the spot or through electronic communication, etc., and are not limited by the form and time limit stipulated in Article 11 of these Measures, and there are special circumstances such as actual inability to contact the parties concerned, with the approval of the main person in charge of the implementing agency shall not apply the provisions of Article 11 of these Measures:

(1) The regulatory indicators of securities fund futures management institutions have deteriorated;

(2) The operation and management situation of securities fund futures management institutions has deteriorated;

(3) A major risk event has occurred;

(4) There are other major hidden risks.

Article 20 Where implementation of other supervisory and administrative measures as stipulated in Article 2 (15) of these Measures has a significant impact on the rights and obligations of the parties concerned, the provisions of Articles 11, 12, 17 and 19 of these Measures shall apply.

Article 21. Where a party is dissatisfied with a decision on supervisory and administrative measures, it may apply for administrative review in accordance with law or directly file a lawsuit with the people's court in accordance with the law. During the period of review and litigation, the execution of supervisory and administrative measures will not be suspended, except as otherwise provided by law.

Article 22 Where an illegal act is subject to administrative punishment, no supervisory and administrative measures shall be taken, except where it is necessary to prevent risks in a timely manner or protect the legitimate rights and interests of investors; those suspected of committing a crime shall be referred to the judicial authorities for handling in accordance with law.

Article 23 Where a party applies to the administrative law enforcement party's commitment system and fully fulfills the commitment approval agreement, the implementing agency shall no longer take supervisory and administrative measures for the same act.

Article 24. Staff members of implementing agencies who have acted negligent in their duties and responsibilities in implementing supervisory and administrative measures, causing major losses, serious consequences, or adverse effects, shall be seriously prosecuted and held accountable in accordance with the regulations, discipline, and law.

Article 25: These Measures will come into effect on June 30, 2026. The “Implementation Measures for the Supervision and Administration of the Securities and Futures Market (Trial)” was abolished at the same time.

This article was selected from the “China Securities Regulatory Commission” official website. Zhitong Finance Editor: Xu Wenqiang.