▣ Initiating delisting process against listed companies’ alleged disclosure crimes

A listed company might be delisted not only for serious disclosure violations, or fraud listing, but also for violation of certain laws.

▣ Strengthening enforcement against manipulation of the securities market by information disclosure

Specifically, if anyone colludes with the listed companies’ controlling shareholders or actual owners in the aforesaid manipulation acts, such individual or company could also be found of manipulating the securities market by information disclosure.

▣ Court explicitly stated that CSRC should apply higher evidentiary standard in presuming insider trading

On the other hand, the court also explicitly stated that CSRC should be prudent in applying the principle of presumption and should apply higher evidentiary standard in finding basic facts, based on which an insider trading was presumed to exist.

▣ Paying close attention to the execution of the duty of due diligence by securities intermediaries

A securities intermediary could be found of violating the duty of due diligence and be pursued for legal liabilities if it fails to comply with operating rules or industry standards while examining IPO/M&A projects or listed companies’ annual reports.

▣ Smooth connection with criminal proceedings and higher possibilities in transferring cases to PSB

CSRC also constantly improves the connection with PSB in transferring cases to criminal proceedings, and expands co-operation with PSB in communicating intelligence, joint investigations, sharing information and analysing cases. This means CSRC steps up its e efforts to fight against serious securities violations, and more cases involving potential criminal liabilities would be transferred to PSB for investigation. Violations of securities laws and regulations would not only lead to administrative penalties but also criminal liabilities.