FINANCE

China Orders Listed Firms to Claw Back Pay in Financial Fraud Crackdown

Published: Apr. 13, 2026 3:39 p.m. GMT+8

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The China Securities Regulatory Commission. Photo: VCG

China’s securities regulator has launched a campaign to strengthen corporate governance, ordering listed companies to claw back executive pay tied to falsified financial results.

The China Securities Regulatory Commission (CSRC) said the initiative, launched in April, aims to reinforce accountability for corporate misconduct under revised governance rules that took effect in January.

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CSRC launched April campaign ordering clawback of executive pay tied to falsified finances under January governance rules.
Aims to reinforce accountability for corporate misconduct amid anti-fraud push.
Includes audit reviews of red flags, curbing shareholder fund misuse, replacing unqualified secretaries, third-party director nominations.

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