China

The Securities Law of the People's Republic of China is in full swing as it operates in the aftermath of a groundbreaking revision implemented on March 1, 2020, and tightened through a cross-border corrective action plan initiated on May 22, 2026. The law was formulated by the Standing Committee of the National People's Congress and implemented by the China Securities Regulatory Commission (CSRC). It updates the Chinese securities market through the permanent implementation of a registration-based IPO regime, which transforms market access away from government approval to disclosure-based accountability. In an effort to address financial misbehavior and to safeguard retail investors, the framework provides harsh penalties (up to 100% of illegal profits from fraudulent issuance as fines on companies) and a representative class-action mechanism for stockholders. With global enforcement provisions, the law exercises extraterritorial jurisdiction over cross-border operations that interfere with the domestic market order, and the CSRC collaborates extensively with cybersecurity and policing agencies to shut down illegal cross-border brokers.