China Securities Regulatory Commission

History

Indicative of the role of the CSRC, China's highest court, the Supreme People's Court–at least as of 2004–has declined to handle securities-related litigation directly, instead deferring such judgments to the CSRC.

In November 2022, it stated its role to build "a capital market with Chinese characteristics".

In 2023, the CSRC was upgraded to a government agency directly under the State Council as part of the plan on reforming Party and state institutions. Additionally, it was granted responsibility auditing corporate bond issuances from the National Development and Reform Commission.

In late 2023 and early 2024, the CSRC instructed some institutional investors not to sell stocks in order to stabilize share prices.

Functions

China's first Securities Law was passed December 1998, and became effective July 1, 1999. The nation's first comprehensive securities legislation, it grants CSRC "authority to implement a centralized and unified regulation of the nationwide securities market in order to ensure their lawful operation". The CSRC oversees China's nationwide centralized securities supervisory system, with the power to regulate and supervise securities issuers, as well as to investigate, and impose penalties for "illegal activities related to securities and futures". The CSRC is empowered to issue opinions or "Guideline Opinions", which are not legally binding, as guidelines for publicly traded corporations.

Affiliated bodies

A number of Chinese financial sector bodies, including all mainland national stock exchanges and futures exchanges and several self-regulatory organizations, are placed under the direct authority of the CSRC:

• Shanghai Stock Exchange (SHSE)
• Shenzhen Stock Exchange (SZSE), including ChiNext
• National Equities Exchange and Quotations (NEEQ), including the Beijing Stock Exchange (BSE)
• Dalian Commodity Exchange (DCE)
• Shanghai Futures Exchange (SHFE)
• Zhengzhou Commodity Exchange (ZCE)
• China Financial Futures Exchange (CFFEX)
• Securities Association of China (SAC)
• China Futures Association (CFA)
• Asset Management Association of China (ACAM)
• China Securities Depository and Clearing Corporation (CSDC)
• China Securities Investor Protection Fund (SIPF)
• China Securities Finance (CSF)
• China Futures Market Monitoring Center (CFMMC)
• China Market Statistics & Monitoring Center (CMSMC)
• China Institute of Finance and Capital Markets (CIFCM)
• China Securities Information Technology Service (CSITS)
• China Minority Investors Service Center (CSISC)

For example, the CSRC appoints the chairperson and CEO of the exchanges.

List of chairpersons

References

References

1. (Winter 2008). "Company Law and the Independent Director System in Contemporary China.". Hastings International and Comparative Law Review.
2. (2004). "Investor Regulations: An American Answer to a Chinese Problem". Rutgers L. Rev..
3. (November 24, 2022). "China Regulator's New Slogan Fuels Buying Spree in State Firms". [[Bloomberg News]].
4. "Decoding Chinese Politics".
5. Lockett, Hudson. (2024-01-16). "Beijing tells some investors not to sell as Chinese stock rout resumes". [[Financial Times]].
6. (January 8, 2024). "China regulators lift stock net-selling ban for mutual funds". [[Reuters]].
7. (2002). "One Country, Two Systems: The Inherent Conflict Between China's Communist Politics and Capitalist Securities Market.". Brook. J. Int'l L..
8. (Winter 2008). "Company Law and the Independent Director System in Contemporary China.". Hastings International and Comparative Law Review.
9. ({{date). "People’s Republic of China: Financial Sector Assessment Program- Detailed Assessment of Observance of the Iosco Objectives and Principles of Securities Regulation".