The Supreme People’s Court (SPC) and the China Securities Regulatory Commission (CSRC) have jointly released a new policy document aimed at reinforcing the legal and regulatory foundations of the country’s capital market. 

The Guiding Opinions on Supporting High-Quality Capital Market Development with Strict and Impartial Law Enforcement and Judicial Services outline a series of measures to improve judicial policy, refine adjudication standards, and strengthen cooperation between regulatory and judicial authorities.

Drawing from regulatory documents and judicial interpretations issued by the SPC in recent years, the guiding opinions list 23 targeted measures to enhance investor protection, regulate market behavior, and improve coordination between courts and regulators. The document marks a significant step in strengthening the rule of law in the capital market. It also reflects China’s broader effort to align its legal infrastructure with the evolving demands of capital market reform and modernization.

Among the topics covered in the document are stronger safeguards for investors, including harsher penalties for fraudulent issuance and false financial disclosures of financial information, and the institutionalization of representative litigation in securities disputes to make it easier and more cost-effective for investors to safeguard their rights. The document also promotes the healthy development of market system by encouraging financial institutions to adhere to their core responsibilities and operate prudently, while advancing law-based support for high-standard institutional opening-up of China’s capital market.

In addition, the document emphasizes the importance of enhanced collaboration between the judiciary and regulatory bodies. This includes building more effective mechanisms for dispute resolution, improving communication and data-sharing, and ensuring better alignment between administrative enforcement and judicial proceedings. It also calls for continued institutional improvements, such as strengthening judicial capacity and optimizing jurisdiction and adjudication procedures to ensure that regulatory oversight and law enforcement in the financial sector align with legal standards.

Moving forward, the SPC and CSRC will effectively implement the guiding opinions, working together to improve the legal framework and coordination mechanisms that support China’s capital market reform. These efforts will further consolidate the rule-of-law foundation for financial development and contribute to China’s broader goal of advancing Chinese modernization and building a financial power.