Recently, the general office of the CPC Central Committee and the general office of the State Council issued the "opinions on strictly cracking down on illegal securities activities according to law", and issued a notice requiring all regions and departments to earnestly implement it in combination with reality.

The main contents of the opinions on strictly cracking down on illegal securities activities according to law are as follows.

Cracking down on illegal securities activities is an important guarantee for maintaining the order of the capital market and giving full play to the hub function of the capital market. Since the 18th CPC National Congress, all relevant parties have earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, solidly promoted the construction of the capital market law enforcement and judicial system, cracked down on illegal activities in the capital market according to law, safeguarded the legitimate rights and interests of investors, and achieved positive results. At the same time, under the background of profound changes in the economic and financial environment and the deepening reform and opening up of the capital market, illegal acts in the capital market are still prominent, it is more difficult to investigate and deal with cases, and relevant law enforcement and judicial work is facing new situations and challenges. In order to further promote the high-quality development of the capital market, we hereby put forward the following opinions on strictly cracking down on illegal securities activities according to law.

1、 General requirements

（1） Guiding ideology. *** Effectively prevent and resolve major risks and provide strong support for accelerating the construction of a standardized, transparent, open, dynamic and resilient capital market.

（2） Working principle

——Adhere to the requirement of zero tolerance. Strictly investigate and deal with securities violations and crimes according to law, strengthen the investigation and handling of major and important cases, strengthen integrity constraints and punishment, and strengthen the deterrent effect.

——Adhere to the principle of rule of law. Follow the principles of openness, fairness and impartiality, adhere to strict law enforcement and fair justice, unify standards and standardize procedures, improve professionalism, transparency and continuously enhance public credibility.

——Adhere to overall planning and coordination. Strengthen the work coordination between securities and futures regulatory institutions, public security, judicial, market supervision and other departments and relevant places, and form a joint force to effectively crack down on securities illegal activities.

——Stick to the bottom line thinking. We will combine strictly cracking down on securities illegal activities according to law with effectively preventing and resolving risks and maintaining national security and social stability, strengthen risk investigation in key areas, strengthen source risk prevention and control, and strictly prevent risk superposition, resonance, amplification and upgrading.

（3） Main objectives. By 2022, important progress will be made in the construction of the legal liability system for violations of laws and crimes in the capital market. The law enforcement judicial system and coordination and cooperation mechanism for strictly cracking down on securities violations in accordance with the law will be preliminarily established. The cost of securities violations and crimes will be significantly increased, the frequent occurrence of major violations and crimes will be effectively curbed, and the channels for investors' rights relief will be more open, The order of the capital market has improved significantly. By 2025, the capital market legal system will be more scientific and complete, the securities law enforcement and judicial system with Chinese characteristics will be more sound, the judicial transparency, standardization and credibility of securities law enforcement will be significantly improved, the connection between administrative law enforcement and criminal justice will be efficient and smooth, and a good capital market ecology of respecting the law and trustworthiness, standardization, transparency, openness and inclusiveness will be fully formed.

2、 We will improve the legal liability system for violations and crimes in the capital market

（4） Improve the securities legislation mechanism. Make full use of the forms of legal amendment, legal interpretation and authorization decision to improve the legislative efficiency in the securities field and enhance the timeliness of legal supply.

（5） Strengthen criminal punishment. We will implement the amendment to the criminal law (11), revise the standards for filing and prosecuting criminal cases at the same time, and improve relevant criminal judicial interpretations and judicial policies.

（6） Improve the administrative legal system. We will implement the newly revised Securities Law, accelerate the formulation and revision of supporting laws and regulations, such as the regulations on the supervision and administration of listed companies, the regulations on the supervision and administration of securities companies, the regulations on the supervision and administration of the new third board market, and the measures for the implementation of commitments by parties involved in Securities and futures administrative law enforcement, so as to greatly increase the cost of violations of laws and regulations. We will accelerate the formulation of the Futures Law and make up for the shortcomings of the futures market supervision and law enforcement system.

（7） We will improve the civil compensation system. We will accelerate the implementation of the representative litigation system for securities disputes. Revise the judicial interpretation of civil compensation caused by false statements and cancel the pre procedure of civil compensation litigation. We will pilot the arbitration system in the securities industry.

（8） Strengthen the market restraint mechanism. Promote the reform of delisting system, strengthen delisting supervision, strictly implement the compulsory delisting system, study and improve the supervision and risk disposal system of delisted companies, and improve the virtuous cycle mechanism of survival of the fittest of listed companies. We will strengthen supervision over the issuance and operation of securities investment funds, implement market exit for fund managers who seriously violate laws and regulations, do a good job in risk disposal, and protect the legitimate interests of fund holders. Improve the self-discipline supervision system of trading places and industry associations on securities violations.

3、 Establish and improve the law enforcement judicial system and mechanism to strictly crack down on securities illegal activities according to law

（9） Establish a coordination mechanism to crack down on illegal activities in the capital market. Establish a coordination working group to crack down on illegal activities in the capital market, strengthen the coordination of major cases, improve the information sharing mechanism, promote the formulation of important rules, and coordinate and solve major problems.

（10） Improve the investigation system and mechanism of securities cases. Give further play to the institutional advantages of the Securities Crime Investigation Bureau of the Ministry of public security stationed in the CSRC, and improve the administrative and criminal law enforcement cooperation mechanism in clue research and judgment, data sharing, intelligence guidance and investigation, collaborative case handling, etc. Further optimize the allocation of resources for the preparation of securities crime investigation of the Ministry of public security, and strengthen the construction of front-line investigation forces.

（11） Improve the procuratorial system and mechanism of securities cases. According to the number of cases and staffing, study the establishment of a financial crime handling team within the procuratorial organ. We will explore the establishment of a working mechanism for stationed procurators in the CSRC, strengthen the coordination and cooperation between the Supreme People's Procuratorate, the CSRC and the Ministry of public security by participating in case clues, discussion and judgment, and crime prevention. Strengthen the professional construction of procuratorial teams in the securities field. When a suspected major criminal case is transferred to the public security organ, it shall be copied to the procuratorial organ at the same time.

（12） Improve the trial system and mechanism of securities cases. Make full use of the existing trial resources, strengthen the construction of financial trial forces in the places where securities trading places such as Beijing and Shenzhen are located, and explore the overall planning of the jurisdiction and trial of criminal, administrative and civil cases in the field of securities and futures. We will deepen the reform of specialized financial trials and strengthen the construction of specialized financial trial teams. Implement the level jurisdiction of the first case of securities crime handled by the intermediate court and the procuratorate at the same level. Strengthen the implementation of administrative penalties and judicial judgments. Establish an expert consultation system and a special mechanism for professionals to serve as people's assessors.

（13） Strengthen the construction of case handling and trial bases. Establish securities crime case handling and trial bases in the public security organs, procuratorial organs and judicial organs of some cities, such as the places where securities exchanges and futures exchanges are located. Strengthen the case delivery of the securities crime handling base, and the corresponding procuratorates and courts are respectively responsible for initiating public prosecution and trial, and appropriately centralize the jurisdiction of securities crime cases according to law through the jurisdiction of the place of crime or designated jurisdiction.

（14） Strengthen local territorial responsibility. We will strengthen information exchange and law enforcement cooperation between the CSRC and local governments and relevant departments, study and establish an internal notification system for major illegal cases in the capital market, effectively prevent and restrict local protection and other obstacles and interference that may be encountered in handling cases, and promote efficient investigation and handling of cases. On the premise that financial management is mainly the central authority, strengthen the responsibility of territorial risk disposal. Local governments should regulate various regional trading places, crack down on various illegal securities and futures activities according to law, do a good job in the prevention and disposal of regional financial risks, and maintain social stability.

4、 We will strengthen the punishment of major securities violations and crimes and law enforcement in key areas

（15） Severely investigate and deal with major and important cases according to law. Adhere to classified supervision and accurate crackdown, and comprehensively improve the quality and efficiency of the investigation and handling of major and important securities violations. We will strictly, quickly and severely investigate and deal with major illegal cases such as fraudulent issuance, false statements, market manipulation, insider trading, trading with unpublished information, and fabricating and disseminating false information. For acts that seriously infringe on the interests of listed companies such as fund occupation and illegal guarantee, they shall be seriously investigated and recovered according to law and rectified within a time limit. We will strengthen accountability for securities violations committed by the controlling shareholders, actual controllers, directors, supervisors, senior managers and other relevant responsible persons of securities issuers. Strengthen the supervision of intermediary institutions. If there are securities violations, the institutions and their employees shall be seriously investigated for responsibility according to law, and the illegal acts such as participating in and assisting in financial fraud shall be severely punished according to law. Accelerate the investigation, punishment and transfer of relevant cases. Strictly control the application of probation according to law.

（16） Severely crack down on illegal securities activities according to law. We will strengthen the coordination and cooperation between market supervision, public security and other departments and the CSRC, improve the inter departmental cooperation mechanism, resolutely ban illegal securities business institutions, resolutely clean up illegal securities business, and resolutely crack down on illegal securities investment consulting and other activities. Strengthen the monitoring of off-site capital allocation, and resolutely crack down on large-scale and systematic off-site capital allocation activities according to law. Strictly check the legitimacy of the source of securities investment funds and strictly control the leverage ratio. Strengthen the connection between administrative disposal and judicial trial of cases involving local trading places, and effectively prevent regional financial risks.

（17） We will strengthen unified law enforcement in the bond market. We will strengthen unified law enforcement of all kinds of illegal acts in the bond market, focusing on cracking down on illegal acts such as fraudulent issuance of bonds, false information disclosure and failure of intermediaries to perform their duties. Continuously optimize the regulatory cooperation mechanism of the bond market.

（18） Strengthen the legal liability of private placement violations. Increase the criminal crackdown on illegal fund-raising in the field of private placement, embezzlement or misappropriation of fund property by private placement fund managers and their employees. We will accelerate the formulation of Interim Regulations on the management of private investment funds, and implement differentiated supervision and industry self-discipline for venture capital enterprises and venture capital management enterprises.

5、 Further strengthen cross-border supervision, law enforcement and judicial cooperation

（19） Strengthen cross-border regulatory cooperation. Improve data security, cross-border data flow, confidential information management and other relevant laws and regulations. We will promptly revise the provisions on strengthening the confidentiality and archives management related to overseas securities issuance and listing, and consolidate the main responsibility of information security of overseas listed companies. Strengthen the standardized management of cross-border information provision mechanism and process. Adhere to the principle of law and reciprocity, and further deepen cross-border audit supervision cooperation. Explore effective ways and means to strengthen international securities law enforcement cooperation, actively participate in international financial governance, and promote the establishment of a law enforcement alliance to combat cross-border securities violations and crimes.

（20） Strengthen the supervision of China concept shares. Take practical measures to deal with the risks and emergencies of the company, and promote the construction of relevant regulatory systems. Revise the special provisions of the State Council on overseas share offering and listing of joint stock limited companies, clarify the responsibilities of domestic industry authorities and regulatory departments, and strengthen cross departmental regulatory coordination.

（21） Establish and improve the extraterritorial application system of capital market laws. We will speed up the formulation of judicial interpretation and supporting rules for extraterritorial application provisions of the securities law, refine the specific conditions for extraterritorial application of the law, and clarify law enforcement procedures, evidence effectiveness and other matters. We will strengthen foreign-related trials in the capital market and promote the mutual recognition and enforcement of judicial decisions between overseas countries, regions and China.

6、 Strive to improve the judicial ability and professional level of securities law enforcement

（22） Enhance the ability of securities law enforcement. We will strengthen securities law enforcement, optimize the establishment of securities inspection and law enforcement agencies, and promote the improvement of securities law enforcement systems and mechanisms with Chinese characteristics that meet the needs of the development of the capital market. Give full play to the function of Party commitment system in Securities and futures administrative law enforcement. We will improve the reward system for reporting illegal securities clues and strengthen the construction of an acceptance platform for reporting illegal clues.

（23） Enrich securities law enforcement means. Effectively use big data, artificial intelligence, blockchain and other technologies to establish a monitoring and early warning system for the securities and futures market, build a new modern supervision and law enforcement model supported by science and technology, improve the efficiency of supervision and law enforcement, strengthen the investigation and early warning of serious potential violations, and achieve effective prevention, timely detection and accurate attack.

（24） Strictly enforce the law and administer justice impartially. Firmly establish the awareness of power and responsibility, evidence and procedure, and effectively improve the professionalism, standardization, authority and credibility of law enforcement and justice. We will strengthen unified law enforcement, formulate discretionary benchmarks for administrative penalties, and standardize law enforcement. We will give full play to the role of reconsideration supervision, litigation supervision and procuratorial supervision, strengthen the standardization and supervision of regulatory and law enforcement agencies, resolutely correct irregularities in law enforcement and judicial work, and create a fair and just legal environment for the development of the capital market.

7、 Strengthen the construction of capital market credit system

（25） Consolidate the institutional foundation for the construction of integrity in the capital market. Add special provisions on Integrity Construction in relevant laws and regulations, establish the responsibility system of integrity recording subjects in the capital market, clarify the integrity conditions, obligations and responsibilities of market participants, and carry out punishment and trustworthy incentive in the capital market in accordance with laws and regulations.

（26） Establish and improve the credit commitment system. Establish a credit commitment system for administrative licensing in the capital market, and clarify the scope of application and licensing matters. Incorporate the credit commitment and its performance into the credit record as an important basis for in-process and post supervision. For the party who seriously violates the commitment, the relevant administrative license shall be revoked according to law.

（27） Strengthen the integrity supervision of the capital market. Establish and improve the national unified integrity archives of the capital market, and comprehensively record the integrity information of the participants in the capital market. We will improve the integrity information sharing mechanism and strengthen information collection, inquiry and publicity. Bring relevant information into the national credit information sharing platform and "credit China" website to form a capital market integrity construction pattern of joint governance and sharing.

8、 Strengthen organizational guarantee, supervision and accountability

（28） Strengthen organizational leadership. All regions and departments should attach great importance to the law enforcement and judicial work in the capital market, effectively unify their thoughts and actions into the decisions and arrangements of the Party Central Committee and the State Council, clarify the division of responsibilities, strengthen work coordination, implement work responsibilities, and ensure the implementation of various tasks.

（29） Strengthen the guidance of public opinion. Do a good job in the news and public opinion work of three-dimensional cracking down on securities illegal activities, strengthen the law enforcement publicity of key cases through multiple channels and platforms, give full play to the role of warning and education in the investigation and handling of typical cases, send a clear signal of zero tolerance to the market, and promote the formation of a good capital market ecology of respecting the law and keeping promises.

（30） Strengthen supervision and accountability. Adhere to the comprehensive and strict governance of the party, and resolutely implement the requirements for deepening the anti-corruption work in the financial field. Law enforcement and judicial organs and discipline inspection and supervision organs work together to promote risk disposal and anti-corruption in the financial field, resolutely investigate and deal with various corruption problems behind financial risks, and pay attention to preventing capital market risks that may be induced by corruption cases. Give priority to investigating and dealing with cases that may affect the major reform process of the capital market and may lead to systemic risks, as well as cases of internal and external connection between regulatory staff and market personnel. Strictly regulate the employment of staff of securities regulatory institutions in enterprises or other profit-making organizations directly related to their original work and business according to law. For those who fail to strictly implement laws and regulations, fail to report clues, fail to file a case, fail to investigate and deal with effectively, and affect the normal investigation and handling of cases, they shall be seriously investigated for responsibility according to regulations and disciplines.