CSRC: Illegal gains and losses from two or more separate violations shall not be offset against each other.

The China Securities Regulatory Commission is soliciting public opinions on the "Administrative Penalty Measures for Determining Illegal Gains in China Securities Regulatory Commission Cases." The Commission stated that if a party commits two or more similar illegal activities, and some activities result in gains while others result in losses, the key issue under consideration is whether gains and losses should offset when calculating illegal gains, which is particularly evident in market manipulation cases. The draft of the "Measures" stipulates that for two or more independent illegal activities, illegal gains shall be calculated separately and gains and losses shall not be offset against each other.