In the first half-year of 2018, CSRC launched 307 investigations and issued 159 decisions of administrative penalties, both of which showed CSRC’s determination in cracking down on securities violations. CSRC also developed new enforcement rationale and established updated enforcement standards in its practice. Based on CSRC latest enforcement practice, we summarised new trends of CSRC enforcement with the hope to assist participants in the Chinese securities market to understand latest enforcement practice and to update their internal compliance system accordingly.
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Initiating delisting process against listed companies' alleged disclosure crimes
▣ Strengthening enforcement against manipulation of the securities market by information disclosure
▣ Court explicitly stated that CSRC should apply higher evidentiary standard in presuming insider trading
▣ Paying close attention to the execution of the duty of due diligence by securities intermediaries
▣ Smooth connection with criminal proceedings and higher possibilities in transferring cases to PSB