On October 19, 2026, the China Securities Regulatory Commission issued the “Implementation Rules for Administrative Penalties in Cases of Illegal Transfer of Securities”. The head of the relevant department of the China Securities Regulatory Commission answered questions from reporters about the “Rules.” Q: What are the next steps to consider in promoting implementation of the Rules? A: The “Rules” send a strong signal of “strict supervision and precise enforcement” to the market, which is of great significance in guiding market players to reduce their holdings and maintain market order. In the next step, we will strengthen organizational implementation to ensure that the “Rules” are implemented and effective. The first is to strengthen market guidance, publicize and interpret the core content and regulatory direction of the “Rules”, so that market participants, especially major shareholders, directors, and senior managers, can continuously raise their awareness of compliance, consciously use the “Rules” to regulate and restrain their own behavior, and guide the market to form stable expectations of “reducing holdings in compliance and heavy penalties for irregularities.” The second is to do a good job of training and guidance. Through organizational business training, etc., the original meaning, application situation, and typical cases of legislation are interpreted one by one to ensure that law enforcement personnel strictly follow the “Rules” in all aspects of determination and discretion, and at the same time strengthen the supervision and guidance of the China Securities Regulatory Commission on administrative penalties imposed by dispatched agencies. The third is to implement dynamic assessments, normalize administrative penalties in statistical cases, carry out evaluations of enforcement effects, continuously optimize and improve the administrative penalty system for cases involving illegal transfer of securities in the market, and balance the demand for normal equity circulation with the protection of the rights and interests of small and medium-sized investors.

On October 19, 2026, the China Securities Regulatory Commission issued the “Implementation Rules for Administrative Penalties in Cases of Illegal Transfer of Securities”. The head of the relevant department of the China Securities Regulatory Commission answered questions from reporters about the “Rules.” Q: What are the next steps to consider in promoting implementation of the Rules? A: The “Rules” send a strong signal of “strict supervision and precise enforcement” to the market, which is of great significance in guiding market players to reduce their holdings and maintain market order. In the next step, we will strengthen organizational implementation to ensure that the “Rules” are implemented and effective. The first is to strengthen market guidance, publicize and interpret the core content and regulatory direction of the “Rules”, so that market participants, especially major shareholders, directors, and senior managers, can continuously raise their awareness of compliance, consciously use the “Rules” to regulate and restrain their own behavior, and guide the market to form stable expectations of “reducing holdings in compliance and heavy penalties for irregularities.” The second is to do a good job of training and guidance. Through organizational business training, etc., the original meaning, application situation, and typical cases of legislation are interpreted one by one to ensure that law enforcement personnel strictly follow the “Rules” in all aspects of determination and discretion, and at the same time strengthen the supervision and guidance of the China Securities Regulatory Commission on administrative penalties imposed by dispatched agencies. The third is to implement dynamic assessments, normalize administrative penalties in statistical cases, carry out evaluations of enforcement effects, continuously optimize and improve the administrative penalty system for cases involving illegal transfer of securities in the market, and balance the demand for normal equity circulation with the protection of the rights and interests of small and medium-sized investors.