Opinion: China’s Capital Market Rules Get Sharper Teeth

China’s capital markets are about to enter a new phase of comprehensive regulatory reinforcement. Recently, the State Council, the country’s cabinet, issued the Opinions on Strengthening Regulation to Prevent Risks and Promote High-Quality Development of Capital Markets, which consists of nine parts.

For these “National Nine Articles,” intensified regulation is the starting point. The document covers an array of areas including issuance and listing access, strict supervision of listed companies, enhanced delisting supervision, reinforced oversight of securities and fund institutions, and strengthened transaction regulation. The document clearly states that regulation must be comprehensively strengthened and risks effectively mitigated and managed, with stability as the underlying tone and rigor at the forefront, ensuring that regulation has teeth — with clear-cut edges.