China To Crack Down Illegal Activities in Securities Market
ISSUING AUTHORITIES:
General Office of the Communist Party of China Central Committee
General Office of the State Council
DATE OF ISSUANCE:
EFFECTIVE DATE:
On July 6, 2021, the Opinions on Strictly Cracking Down on Illegal Securities Activities in Accordance with the Law (the "Opinions") was jointly issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council.
The Opinions specify the targets in upgrading the securities law-enforcement and judicial systems by 2022 and 2025, including effectively curbing the frequent occurrence of major illegal and criminal cases, as well as making notable advances in the transparency, standardization and credibility in the securities law-enforcement and judicial system. Specific measures are put forward from 27 aspects.
In accordance with the Opinions, efforts should be made to improve the securities legislation mechanism, while strengthening criminal punishment and market discipline.
The scope of law enforcement has been further expanded. Item 5 of the Opinions emphasizes the strengthening of judicial cooperation in cross-border supervision and law enforcement. It provides a series of guiding opinions on the improvement of regulations of data security and cross-border data flow, the supervision over Chinese share-holding companies (the China concepts stocks), and the extraterritorial application of law, reflecting that the risks of overseas listed Chinese companies have raised increasing concern of the State.
Reference:
《關(guān)于依法從嚴(yán)打擊證券違法活動(dòng)的意見》
