Transition from "fragmented governance" to "systematic governance" marks a new stage of strict supervision for listed companies.

In 2026, many listed companies were fined at the beginning of the year, which was actually a continuation of the strict supervision in 2025. According to statistics, in 2025, more than 90 listed companies in the A-share market received administrative penalty decisions, and another 8 listed companies disclosed receiving criminal judgment announcements, revealing the situation where the company or related senior executives were sentenced, with offenses including fraudulent issuance, fund misappropriation, insider trading, and market manipulation. The judicial verdicts of cases like Kangde Xin, Zijin Storage, *ST Jinling, and others indicate that China has entered a new stage of "strict punishment and heavy penalties" in the governance of securities illegal activities. "Based on the achievements in 2025, in 2026, the construction of the rule of law in China's capital market will pay more attention to overall and systemic governance," said Huang Shizhong, vice president of the Chinese Institute of Certified Public Accountants. Huang believes that China is transforming its approach towards dealing with illegal activities in the securities market from "fragmented governance" to "systematic governance," accelerating the shift from single-department supervision to a pattern of "judicial + administrative" coordinated supervision, and an integrated accountability of "administrative + civil + criminal," which responds to investors' key concerns about cleaning up chaos in the capital markets.