China Issues Regulations for Settling Capital Market Violations

On November 29, Premier Li Keqiang signed a State Council order announcing the Measures for Implementing the Commitment System of Parties to Securities and Futures Administrative Law Enforcement, which will come into force on January 1, 2022. Photo: VCG

China’s upcoming regulations for administrative settlements aren’t a means for capital market rule-breakers to pay their way out of investigations, the country’s top securities regulator said in a Monday Q&A.

From the start of 2022, individuals and institutions being probed by the China Securities Regulatory Commission (CSRC) will be able to pay settlements, rather than waiting for the result of the investigation, according to regulations (link in Chinese) published by the watchdog on Monday. Such administrative settlements are used in many countries as a way of dealing with misconduct quickly and at less cost.

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