CSRC: Crack down on malignant fraudulent behavior such as fictitious business and abuse of accounting policies.

Chen Huaping, Vice Chairman of the China Securities Regulatory Commission, delivered a speech at the "5.15 National Investor Protection Publicity Day" event in 2025, stating that the commission will strictly crack down on illegal activities in the securities and futures markets to create a safe investment environment for investors. The commission always adheres to a regulatory approach with "long teeth and sharp thorns", continuously improves the standardization of regulatory law enforcement, and enhances the precision of cracking down on illegal activities. In accordance with the requirements of the State Council to strengthen the comprehensive punishment and prevention of financial fraud in the capital market, efforts will be made to accelerate the construction of a comprehensive system to prevent financial fraud, and strictly crack down on malicious activities such as fictitious business and abuse of accounting policies. The commission will focus on investigating the main culprits responsible for financial fraud, including the major shareholders and actual controllers of fraudulent companies. It will also strictly and swiftly punish illegal reduction of holdings, especially behaviors that disrupt the order of the capital market, such as indirect reduction of holdings and disguised reduction of holdings. Efforts will be concentrated on combating insider trading, market manipulation, and other serious illegal activities that harm the interests of small and medium investors. A heavy hand will be used to crack down on illegal stock recommendations, illegal agent rights protection, and other illegal activities to maintain a healthy market ecosystem. Additionally, the commission will use typical cases as examples, interpreting laws through cases, and achieving the goal of "handling one case, deterring one party, and governing one area".