CSRC Issues Revised Code of Corporate Governance for Listed Companies, Effective From 2026

On October 16, 2025, the China Securities Regulatory Commission released the Code of Corporate Governance for Listed Companies (CSRC Announcement [2025] No. 18) (the “Code”), which will take effect on January 1, 2026.

The Code improves the management of the appointment, performance of duties, and resignation of directors and senior executives, refining requirements for qualification review, fiduciary and diligence obligations, and accountability and recovery upon resignation. It requires listed companies to establish a compensation management system, linking the compensation of directors and senior executives to company and individual performance, and improving mechanisms for deferred payment, suspension, and clawback. It strictly regulates the conduct of controlling shareholders and actual controllers, strengthening restrictions on competition in the same industry and the review of related-party transactions. It clarifies provisions on information disclosure, internal control, and participation of institutional investors in corporate governance.