Regulators step up measures to curb financial fraud in listed companies

Chinese regulators are reinforcing their commitment to crack down on financial fraud among listed companies, with multiple authorities convening to implement more concrete and coordinated enforcement actions.

The China Securities Regulatory Commission held an interdepartmental meeting on Monday to advance a comprehensive system for punishing and preventing financial fraud in the capital market.

The meeting was chaired by CSRC Chairman Wu Qing and attended by senior officials from the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, the People's Bank of China, and other key government bodies.

Participants noted that financial fraud is often motivated by illicit gains and marked by long-term and complex dynamics, calling for stronger regulatory coordination and a shared responsibility to combat and prevent such misconduct.

The CSRC said it will continue to work proactively with relevant departments by rolling out more concrete measures to enhance the effectiveness of joint enforcement, improve the quality of listed companies and safeguard investor interests.

The meeting also highlighted that efforts to establish a comprehensive anti-fraud framework have entered a critical phase of deeper implementation. Authorities will advance supporting laws and regulations, strengthen coordination among administrative, criminal and civil enforcement, and intensify actions against both fraudulent companies and third parties that assist in such misconduct. A new round of special actions to improve corporate governance will also be launched.

Since the State Council issued guiding opinions in July 2024 to strengthen the anti-fraud framework, enforcement has intensified. Since 2024, the CSRC has investigated 159 financial fraud cases, imposed administrative penalties in 111 cases involving 8.1 billion yuan ($1.16 billion), transferred 112 suspected criminal cases to the police and initiated delisting and investor compensation actions, official data showed.