CSRC Revises and Issues Measures for the Classification and Evaluation of Securities Companies

On August 22, 2025, the China Securities Regulatory Commission (CSRC) released the Decision on Amending the Measures for the Classified Supervision of Securities Companies (the “Decision”), with immediate effect, renamed as the Measures for the Classification and Evaluation of Securities Companies.

Key revisions include:

1. Renaming the rules to Measures for the Classification and Evaluation of Securities Companies, and adjusting the evaluation framework to focus on “risk management capability, sustained compliance, business development, and functional performance”;

2. Improving bonus point indicators, expanding the scope of bonus categories, and encouraging differentiated development of small and medium-sized institutions;

3. Strengthening comprehensive penalties, optimizing point deductions for administrative penalties and self-disciplinary sanctions, with major violations capable of resulting in direct downgrading of ratings;

4. Defining special issue handling rules, with point deduction reductions for companies that actively make commitments or provide advance compensation.

The classification and evaluation results will be used as prudential factors in matters such as business applications, pilot program rollouts, and the proportion of investor protection fund contributions.