Securities Law of the People's Republic of China

Introduction

The Securities Law of the People’s Republic of China governs securities issuance and trading in China. The Law was substantially revised in 2019 to strengthen investor protection and market regulation.

Regulatory Framework

The China Securities Regulatory Commission (CSRC) regulates securities markets. Issuers must comply with disclosure requirements, including the registration-based IPO system introduced in the 2019 revision.

Prohibited Conduct

The Law prohibits insider trading, market manipulation, and false statements. Penalties include administrative fines, market bans, and criminal liability. The 2019 revision significantly increased maximum fines.

Investor Protection

The Law establishes an investor protection chapter including a securities investor protection fund, a representative action mechanism, and enhanced civil liability for violations.