Comparison Table of the Old and New Versions of the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets (Sections I–VIII)

Comparison Table of the Old and New Versions of the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets

Interim Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets

(Approved at the 14th Meeting of the Chairman’s Office of the China Securities Regulatory Commission on April 10, 2012, and revised in accordance with the Decision of the China Securities Regulatory Commission dated September 5, 2014, amending the Interim Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets)

Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets

(Approved at the 7th Meeting of the Chairman’s Office of the China Securities Regulatory Commission on November 2, 2017; hereby promulgated and effective as of July 1, 2018.)

Chapter I General Provisions

Chapter I General Provisions

Article 1: In order to strengthen integrity-building in the securities and futures markets, protect the legitimate rights and interests of investors, maintain market order, and promote the sound and stable development of the securities and futures markets, these Measures are formulated in accordance with relevant laws and administrative regulations.

Article 1: In order to strengthen integrity-building in the securities and futures markets, protect the legitimate rights and interests of investors, maintain market order, and promote the sound and stable development of the securities and futures markets, these Measures are formulated in accordance with relevant laws and administrative regulations.

Article 2 The China Securities Regulatory Commission (hereinafter referred to as the CSRC) shall establish a nationwide, unified database of integrity records for the securities and futures markets (hereinafter referred to as the Integrity Records), which shall record integrity information pertaining to the securities and futures markets.

Article 2 The China Securities Regulatory Commission (hereinafter referred to as the CSRC) shall establish a nationwide, unified database of integrity records for the securities and futures markets (hereinafter referred to as the Integrity Records), which shall record integrity information pertaining to the securities and futures markets.

Article 3 This Measures shall apply to the definition, collection, and management of integrity information recorded in the integrity archives; to the disclosure and inquiry of such information; and to measures for integrity-based constraints, incentives, and guidance.

Article 3 This Measures shall apply to the definition, collection, and management of integrity information recorded in the integrity archives; to the disclosure and inquiry of such information; and to measures for integrity-based constraints, incentives, and guidance.

Article 4 Citizens (natural persons), legal persons, or other organizations engaging in activities in the securities and futures markets shall act in good faith, comply with laws, administrative regulations, rules, and self-regulatory rules formulated in accordance with the law, and are prohibited from engaging in fraud, insider trading, market manipulation, or any other dishonest conduct that harms the legitimate rights and interests of investors.

Article 4 Citizens (natural persons), legal persons, or other organizations engaging in securities and futures market activities shall act in good faith and abide by laws, administrative regulations, rules, and self-regulatory rules formulated in accordance with the law. They are prohibited from engaging in fraud, insider trading, market manipulation, and any other dishonest practices that harm the legitimate rights and interests of investors.

Article 5: The China Securities Regulatory Commission encourages and supports honest and trustworthy citizens, legal persons, or other organizations to engage in securities and futures market activities, and implements measures to constrain, incentivize, and guide integrity.

Article 5: The China Securities Regulatory Commission encourages and supports honest and trustworthy citizens, legal persons, or other organizations in engaging in activities in the securities and futures markets, and implements measures to impose integrity-based constraints, provide incentives, and offer guidance.

Article 6 The China Securities Regulatory Commission may establish mechanisms for integrity‑based supervision and cooperation with other departments of the State Council, local governments, judicial organs, and industry organizations, implement the sharing of integrity information, and promote the improvement of the social credit system.

Article 6 The China Securities Regulatory Commission may, in conjunction with other departments of the State Council and local authorities, The people Government, Country Judicial organs, industry organizations, Foreign securities and futures regulatory authorities Establish a cooperative mechanism for integrity-based regulation, implement the sharing of integrity-related information, and promote the improvement of the social credit system.

Chapter 2: Collection of Integrity Information

Chapter 2: Collection and Management of Integrity Information

Article 7: The integrity information of the following citizens, legal persons, or other organizations engaged in activities in the securities and futures markets shall be recorded in their integrity files:

(1) Securities industry practitioners and futures industry practitioners;

(2) The issuer, listed companies, and their directors, supervisors, senior management personnel, major shareholders, and actual controllers;

(3) Securities companies, fund management companies, and futures companies, as well as their directors, supervisors, senior management personnel, major shareholders, and ultimate controllers;

(4) Securities and futures service institutions, including accounting firms, law firms, sponsor institutions, financial advisory institutions, asset appraisal agencies, investment consulting firms, credit rating agencies, and their practitioners;

(5) Independent fund sales institutions, fund rating agencies and their relevant personnel; non‑publicly offered fund managers, qualified foreign institutional investors, qualified domestic institutional investors and their principal investment management personnel; and representative offices in China of overseas securities‑related institutions and their chief representatives.

(6) Suppliers that provide information technology services or software and hardware products to the securities and futures industry;

(7) Service institutions and their personnel that provide investor relations management and other public relations services to issuers and listed companies;

(8) Other citizens, legal persons, or other organizations that have engaged in unlawful or untrustworthy conduct related to securities and futures market activities.

Article 7: The following integrity information pertaining to citizens, legal persons, or other organizations engaged in securities and futures market activities shall be recorded in their integrity files:

(1) Securities industry practitioners, futures industry practitioners, and Fund industry professionals ；

(2) Investors and traders in the securities and futures markets;

(3) Securities Issuer, listed company, Companies listed on the National Equities Exchange and Quotations System for Small and Medium-sized Enterprises, as well as enterprises whose securities are listed and traded on regional equity markets. and its directors, supervisors, senior management personnel, major shareholders, and ultimate controlling persons;

(4) The operating institution of a regional equity market, together with its directors, supervisors, and senior management personnel, as well as institutions that handle account opening, fund custody, registration, and settlement services for the regional equity market;

(5) Securities companies, futures companies, Fund manager, bond trustee, and bond issuance guarantor and its directors, supervisors, senior management personnel, major shareholders, and ultimate controlling persons or the managing partner , qualified foreign institutional investors, qualified domestic institutional investors and their principal investment management personnel, as well as representative offices in China of overseas securities‑related institutions and their Chief Representative , Chief Representative;

(6) Accounting firms, law firms, sponsor institutions, financial advisory institutions, asset appraisal agencies, investment consulting agencies, credit rating agencies, Fund service institutions, futures contract delivery warehouses, and quality inspection and quarantine agencies for the underlying assets of futures contracts Securities and futures service institutions and their relevant practitioners;

(7) Commercial banks or other financial institutions that provide custody and safekeeping services for securities and futures business, as well as the senior management of their custody and safekeeping departments;

(8) Suppliers that provide information technology services or software and hardware products to the securities and futures industry;

(9) For the issuer, the listed company, Companies listed on the National Equities Exchange and Quotations System for Small and Medium-sized Enterprises Service providers and their personnel offering investor relations management and other public relations services;

(10) Securities and futures dissemination media organizations and personnel;

(11) Any person who, by improper means, interferes with the regulatory and law-enforcement activities of the China Securities Regulatory Commission and its branch institutions;

(12) Other citizens, legal persons, or other organizations that have engaged in unlawful or untrustworthy conduct related to securities and futures market activities.

Article 8: The “integrity information” referred to in these Measures includes:

(1) The basic information of citizens, including their name, gender, nationality, and identity document number; and the name, domicile, and organizational code of legal persons or other organizations;

(2) Commendations, awards, and evaluations issued by the China Securities Regulatory Commission, other competent departments of the State Council, and other provincial- or ministerial-level or higher authorities; as well as credit ratings issued by credit rating agencies;

(3) Administrative licensing decisions made by the China Securities Regulatory Commission and its branch institutions;

(4) The status of public commitments made by the issuer, listed companies and their major shareholders and actual controllers, directors, supervisors, and senior management, as well as by all parties to major asset restructuring transactions and acquirers, including whether such commitments have been unfulfilled or not fulfilled on schedule, are currently being fulfilled, or have been fulfilled on schedule;

(5) Administrative penalties, market‑entry bans, and supervisory and administrative measures imposed by the China Securities Regulatory Commission and its branch institutions;

(6) Disciplinary measures imposed by industry organizations in the securities and futures markets, as well as administrative measures prescribed by laws, administrative regulations, and rules;

(7) Being investigated and subject to coercive measures by the China Securities Regulatory Commission or its branch institutions on suspicion of securities or futures law violations;

(8) Having been referred by the China Securities Regulatory Commission and its branch institutions to public security organs or people’s procuratorates for handling on suspicion of securities or futures-related crimes;

(9) Having been sentenced by a people’s court for securities or futures‑related crimes or other criminal offenses;

(10) Having been adjudicated by the People’s Court to bear substantial civil liability for damages arising from securities or futures-related torts or breaches of contract;

(11) Having been subject to administrative penalties by relevant competent authorities, including banks, insurance regulators, fiscal authorities, tax authorities, environmental protection agencies, industry and commerce administration departments, and customs authorities, for engaging in business activities in violation of the law;

(12) Other information regarding conduct that violates the principle of good faith and fair dealing.

Article 8: The “integrity information” referred to in these Measures includes:

(1) The name, gender, nationality, and identity document number of a citizen; the name and domicile of a legal person or other organization; Unified Social Credit Code Basic information;

(2) Commendations, awards, and evaluations issued by the China Securities Regulatory Commission, other competent departments of the State Council, and other provincial- or ministerial-level or higher authorities, as well as by national securities and futures market industry organizations such as securities and futures exchanges, industry associations of the securities and futures markets, and securities registration and clearing institutions (hereinafter referred to as “securities and futures market industry organizations”); and credit rating agencies, Integrity Assessment Agency Credit ratings issued, Integrity Assessment ；

(3) Administrative licensing decisions made by the China Securities Regulatory Commission and its branch institutions;

(4) Issuers, listed companies, Companies listed on the National Equities Exchange and Quotations System for Small and Medium-sized Enterprises and the status—whether such public commitments made by its major shareholders, ultimate controllers, directors, supervisors, senior management, all parties to major asset restructuring transactions, and acquirers have been unfulfilled, fulfilled on schedule, or currently being fulfilled;

(5) Administrative penalties, market‑entry bans, and supervisory and administrative measures imposed by the China Securities Regulatory Commission and its branch institutions;

(6) Disciplinary measures imposed by industry organizations in the securities and futures markets, as well as administrative measures prescribed by laws, administrative regulations, and rules;

(7) Being investigated and subject to coercive measures by the China Securities Regulatory Commission or its branch institutions on suspicion of securities or futures law violations;

(8) Refusal to comply upon expiration with final administrative penalty decisions and supervisory measures issued by the China Securities Regulatory Commission (CSRC) and its branch institutions; imposition of administrative penalties or other disposition decisions by relevant authorities for failure to cooperate with the CSRC and its branch institutions in inspections, oversight, or investigations; and refusal to perform a mediation agreement on securities and futures disputes that has already been reached.

(9) The bond issuer’s failure to repay principal and interest on time, or other defaults; and the guarantor’s failure to perform its guarantee obligations as agreed.

(10) Having been referred by the China Securities Regulatory Commission and its branch institutions to public security organs or people’s procuratorates for handling on suspicion of securities or futures-related crimes;

(11) Information concerning interference, by improper means, with the regulatory and law-enforcement activities of the China Securities Regulatory Commission and its branch institutions, resulting in administrative or disciplinary sanctions; or, where the circumstances are relatively minor and no sanction has been imposed, but which has nevertheless been identified by disciplinary inspection or administrative supervisory authorities.

(12) Having been sentenced by a people’s court for securities or futures‑related crimes or other criminal offenses;

(13) Having been adjudicated by the people’s court to bear substantial civil liability for damages arising from securities or futures-related torts or breaches of contract;

(14) Having been subject to administrative penalties by relevant competent authorities, including banks, insurance regulators, fiscal authorities, tax authorities, environmental protection agencies, industry and commerce administration departments, and customs, for engaging in business activities in violation of the law;

(15) Having been subject to administrative penalties or remedial and rectification measures by local governments for illegally establishing securities and futures trading venues or organizing securities and futures trading;

(16) Having been dismissed by a securities company, a futures company, a fund manager, a securities and futures service institution, or an industry organization in the securities and futures markets due to unlawful or dishonest conduct;

(17) Default and dishonesty information arising from margin trading, securities lending, stock borrowing and lending, securities repurchase agreements, reverse repurchase agreements, futures trading, and other credit‑based transactions;

(18) Information on other acts that violate the principle of good faith and fair dealing.