CSRC Issues Opinions to Strengthen the Protection of Small and Medium-Sized Investors in the Capital Market

On October 27, the China Securities Regulatory Commission issued the Opinions on Strengthening the Protection of Small and Medium-Sized Investors in the Capital Market (the “Opinions”) (CSRC Announcement [2025] No. 19), effective from the date of promulgation.

The Opinions propose optimizing the IPO pricing mechanism, improving the quality of information disclosure in prospectuses, tightening the information disclosure responsibilities of Listed Companies and related parties, and promoting Listed Companies to enhance investor returns. They comprehensively optimize regulation of margin financing and securities lending, algorithmic trading, and securities and futures brokerage business, requiring operating institutions to strengthen product suitability, investor education, complaint handling, and suitability management. The Opinions strictly crack down on illegal acts such as fraudulent issuance, financial falsification, insider trading, and market manipulation. They improve diversified dispute resolution mechanisms, strengthen the litigation and exemplary leading role of investor protection institutions, enhance investor protection measures for delisting and voluntary delisting, and improve the participation of small and medium-sized investors in legislation and the rule-of-law guarantees.