The China Securities Regulatory Commission intensifies its efforts to combat financial fraud in the capital market.

The China Securities Regulatory Commission (CSRC), in collaboration with multiple departments, has issued the "Opinions on Further Enhancing the Comprehensive Punishment and Prevention of Financial Fraud in the Capital Market," aimed at combating financial fraud and protecting the rights and interests of investors.

Key points include:

• Focusing on cracking down on fraudulent issuances and false information disclosures.
• Accelerating regulatory transformation and improving investigation and penalty mechanisms.
• Promoting amendments to the Securities Law, increasing the maximum fines to 10 million yuan and 5 million yuan.
• Enhancing the maximum prison term for illegal disclosure in the Criminal Law to 10 years.
• Intermediate institutions and their practitioners who issue false certification documents can be sentenced to up to 10 years in prison.

The CSRC emphasizes that financial fraud undermines market integrity and harms investor interests. In recent years, it has handled multiple fraud cases, promoted the establishment of a collective litigation system, and implemented mandatory delisting for major violations.

Addressing the covert and complex nature of financial fraud, the CSRC will strengthen regulatory coordination, building a comprehensive long-term mechanism for punishment and prevention. This includes optimizing the law enforcement system, increasing accountability, enhancing inter-departmental and central-local coordination, and implementing regular prevention measures against financial fraud.

Personal view: This move demonstrates China's emphasis on the integrity of the capital market, reinforcing the crackdown on financial fraud through legal and regulatory means. It not only helps to purify the market environment but also sends a clear signal to investors about the protection of their rights.