CSRC: Intends to strictly prohibit controlling shareholders and actual controllers from engaging in behaviors that harm the interests of listed companies, such as misappropriation of funds and illegal guarantees. Regulate behaviors such as major shareholders and specific shareholders reducing their holdings.

The China Securities Regulatory Commission has drafted the "Regulations on the Supervision and Management of Listed Companies" and is now soliciting public opinions. The draft points out the need to improve corporate governance requirements. First, it clarifies the basic framework of corporate governance for listed companies. It elaborates on the matters specified in the company's articles of association, and specifies the powers and exercise methods of the shareholders' meeting, board of directors, audit committee, and independent directors. Second, it regulates the behavior of directors and senior management. It specifies the qualifications for directors and senior management, elaborates on the duties of loyalty and diligence of directors and senior management, as well as the responsibilities of the board secretary, and strengthens incentives and constraints on directors and senior management. Third, it regulates the behavior of controlling shareholders and actual controllers. It specifies the criteria for identifying controlling shareholders and actual controllers, strictly prohibits controlling shareholders and actual controllers from engaging in behavior that harms the interests of listed companies, such as fund occupation and illegal guarantees, and strictly regulates behavior related to industry competition and related party transactions. Fourth, it protects and regulates the exercise of shareholder rights. It prohibits interference with shareholders' exercise of statutory rights, regulates the transfer and abandonment of voting rights, as well as behaviors such as share reduction by major shareholders and specific shareholders.