China's regulator clarifies securities and futures market rules

China's securities regulator has refined rules governing the administrative commitment system for enforcement parties in the securities and futures market, further clarifying eligibility criteria and procedures to enhance policy effectiveness.

The China Securities Regulatory Commission said on Wednesday that it has revised regulations on the system, which will take effect on Feb 1.

Under the system, which is widely used in overseas capital markets, parties under investigation for suspected securities or futures violations may commit to rectifying misconduct, compensating investors for losses and eliminating adverse impacts. Upon fulfillment of such commitments, the CSRC may terminate the investigation.

The revised rules specify circumstances under which applications will not be accepted, including refusal to cooperate with investigations, lack of capacity to pay required commitment funds, or inclusion on the list of seriously dishonest market entities without credit restoration.

The rules also strengthen integrity requirements and improve relevant procedures, with the CSRC vowing to further leverage the system to protect investors, maintain market order and improve enforcement efficiency.