The China Securities Regulatory Commission (CSRC) is a government agency directly under the

State Council of the People's Republic of China The State Council of the People's Republic of China, also known as the Central People's Government, is the chief administrative authority and national cabinet. It is constitutionally the highest administrative organ of the country and the e ...

. It is the main regulator of the securities industry in China.

History

Indicative of the role of the CSRC, China's highest court, the

Supreme People's Court The Supreme People's Court of the People's Republic of China (SPC) is the highest court of the People's Republic of China. It hears appeals of cases from the high people's courts and is the trial court for cases about matters of national ...

–at least as of 2004–has declined to handle securities-related litigation directly, instead deferring such judgments to the CSRC. In November 2022, it stated its role to build "a capital market with Chinese characteristics". In 2023, the CSRC was upgraded to a government agency directly under the State Council as part of the plan on reforming Party and state institutions. Additionally, it was granted responsibility auditing corporate bond issuances from the

National Development and Reform Commission The National Development and Reform Commission (NDRC) is the third-ranked executive department of the State Council of the People's Republic of China, which functions as a macroeconomic management agency. Established as the State Planning C ...

. In late 2023 and early 2024, the CSRC instructed some institutional investors not to sell stocks in order to stabilize share prices.

Functions

China's first Securities Law was passed December 1998, and became effective July 1, 1999. The nation's first comprehensive securities legislation, it grants CSRC "authority to implement a centralized and unified regulation of the nationwide securities market in order to ensure their lawful operation". The CSRC oversees China's nationwide centralized securities supervisory system, with the power to regulate and supervise securities issuers, as well as to investigate, and impose penalties for "illegal activities related to securities and futures"., note 1. The CSRC is empowered to issue opinions or "Guideline Opinions", which are not legally binding, as guidelines for publicly traded corporations.

Affiliated bodies

A number of Chinese financial sector bodies, including all mainland national

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

s and

futures exchange A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or ...

s and several

self-regulatory organization Self-regulation may refer to: *Emotional self-regulation *Self-control, in sociology/psychology *Self-regulated learning, in educational psychology *Self-regulation theory (SRT), a system of conscious personal management *Industry self-regulation, ...

s, are placed under the direct authority of the CSRC: *

Shanghai Stock Exchange The Shanghai Stock Exchange (, SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock ...

(SHSE) *

Shenzhen Stock Exchange The Shenzhen Stock Exchange (SZSE; ) is a stock exchange based in the city of Shenzhen, in the People's Republic of China. It is one of three stock exchanges operating independently in Mainland China, the others being the Beijing Stock Excha ...

(SZSE), including ChiNext * National Equities Exchange and Quotations (NEEQ), including the Beijing Stock Exchange (BSE) * Dalian Commodity Exchange (DCE) * Shanghai Futures Exchange (SHFE) * Zhengzhou Commodity Exchange (ZCE) * China Financial Futures Exchange (CFFEX) * Securities Association of China (SAC) * China Futures Association (CFA) * Asset Management Association of China (ACAM) * China Securities Depository and Clearing Corporation (CSDC) * China Securities Investor Protection Fund (SIPF) * China Securities Finance (CSF) * China Futures Market Monitoring Center (CFMMC) * China Market Statistics & Monitoring Center (CMSMC) * China Institute of Finance and Capital Markets (CIFCM) * China Securities Information Technology Service (CSITS) * China Minority Investors Service Center (CSISC) For example, the CSRC appoints the chairperson and CEO of the exchanges.

List of chairpersons

References

External links