The CSRC drafts the "Regulations on the Management Standards for Two Types of Subsidiaries of Securities Firms", detailing the criteria for determining major issues.

On May 19th, it was learned from industry sources that the China Securities Association has recently drafted guidelines on the regulation of two types of subsidiaries of securities companies. The guidelines specify the criteria and reporting requirements for identifying situations or events that have a significant impact on the operations and management of a company that require a temporary report under the regulation of two types of subsidiaries of securities companies. The industry opinions were recently solicited. According to the guidelines, situations or events that have a significant impact on the operations and management of non-traditional subsidiaries and private equity subsidiaries of securities companies cover the following dimensions: changes in company details such as name, address, business licenses, registered capital, qualifications or permits; business division, mergers, spin-offs, establishment of branches/secondary management subsidiaries, dissolution, liquidation, cancellation, etc. For the establishment of branches or secondary management subsidiaries, compliance with the relevant requirements of the China Securities Association's "Applicable Opinion No. 6" is required. Private equity subsidiaries establishing secondary management subsidiaries are required to submit a statement on the structure of equity ownership, the necessity and rationality of introducing third-party institutions, business divisions, etc.