The China Securities Regulatory Commission is currently working on strengthening the supervision of third parties involved in fraudulent activities in the capital market.

It is understood that the China Securities Regulatory Commission (CSRC) is making efforts to strengthen the regulation of third parties involved in fraud in the capital market from three aspects. Firstly, it is seeking to introduce the "Regulations on the Supervision and Administration of Listed Companies" to grant the CSRC the power to investigate and impose administrative penalties on third parties involved in fraud at the legal level. Secondly, it is promoting coordinated efforts among government departments. After the CSRC initially identifies third parties involved in fraud, they will be transferred to the relevant regulatory authorities for handling. For example, cases involving banks will be transferred to the China Banking Regulatory Commission, cases involving state-owned enterprises will be transferred to the State-owned Assets Supervision and Administration Commission, and cases involving local state-owned enterprises or private enterprises will be transferred to local governments. It is understood that the transfer work has been fully initiated and has achieved preliminary results. Thirdly, the third parties involved in fraud will be reported to facilitate the respective regulatory authorities in their enforcement efforts.