The China Securities Regulatory Commission (CSRC) is a government agency directly under the State Council of China. It is the main regulator of the securities industry in China.
Indicative of the role of the CSRC, China's highest court, the Supreme People's CourtâÂÂat least as of 2004âÂÂhas declined to handle securities-related litigation directly, instead deferring such judgments to the CSRC.
In November 2022, it stated its role to build "a capital market with Chinese characteristics".
In 2023, the CSRC was upgraded to a government agency directly under the State Council as part of the plan on reforming Party and state institutions. Additionally, it was granted responsibility auditing corporate bond issuances from the National Development and Reform Commission.
In late 2023 and early 2024, the CSRC instructed some institutional investors not to sell stocks in order to stabilize share prices.
China's first Securities Law was passed December 1998, and became effective July 1, 1999. The nation's first comprehensive securities legislation, it grants CSRC "authority to implement a centralized and unified regulation of the nationwide securities market in order to ensure their lawful operation". The CSRC oversees China's nationwide centralized securities supervisory system, with the power to regulate and supervise securities issuers, as well as to investigate, and impose penalties for "illegal activities related to securities and futures". The CSRC is empowered to issue opinions or "Guideline Opinions", which are not legally binding, as guidelines for publicly traded corporations.
A number of Chinese financial sector bodies, including all mainland national stock exchanges and futures exchanges and several self-regulatory organizations, are placed under the direct authority of the CSRC:
For example, the CSRC appoints the chairperson and CEO of the exchanges.