What Is the China Securities Regulatory Commission (CSRC)?

What Is the China Securities Regulatory Commission (CSRC)?

The China Securities Regulatory Commission (CSRC) is responsible for regulating China's securities industry. The SEC in the United States is comparable to the CSRC. The China Securities Regulatory Commission (CSRC) reports to the State Council of China, which is the principal administrative organization in the country. The CSRC has many roles, including developing and implementing securities regulations, approving and regulating fund management companies, collecting and publishing market statistics, and investigating and penalizing any violations of the law. The China Securities Regulatory Commission (CSRC) enforces strict measures and imposes severe penalties such as fines, bans, and other forms of punishment for those who violate the law.


In charge of overseeing China's securities and futures industry, the China Securities Regulatory Commission (CSRC) plays a vital role as the national regulatory body. Comparable to the U.S. Securities and Exchange Commission (SEC), its primary objective is to maintain the integrity and fairness of the markets. Comprising 36 regulatory bureaus, the CSRC's jurisdiction spans across various geographic regions in the country. Additionally, it operates two supervisory bureaus at the nation's largest stock exchanges located in Shanghai and Shenzhen.

The China Securities Regulatory Commission (CSRC)

Established in 1998, the China Securities Regulatory Commission (CSRC) is a relatively new regulatory body responsible for overseeing the country's financial landscape. Reporting directly to China's State Council, the main administrative authority, the CSRC holds significant regulatory power.

Headquartered in Beijing, the CSRC operates under the leadership of one chairman and four vice-chairs. The board includes a secretary of the Discipline Commission and three assistants to the chair. Additionally, there are 18 functional departments, one inspection division, and three centers within the organization.

Led by Chairman Yi Huiman since January 2019, the CSRC is entrusted with various critical roles, including:

  1. Formulating and implementing laws and regulations for the securities and futures markets.
  2. Supervising and ensuring compliance among securities companies.
  3. Overseeing the issuance, trading, custody, and settlement of stocks, bonds, and other listed securities.
  4. Monitoring the listing, trading, and settlement of domestic futures and overseas futures activity of domestic institutions.
  5. Exercising control over the 36 affiliated bureaus and their managers.
  6. Approving and regulating fund management companies, securities depository, clearing corporations, credit rating agencies, and fund custodians.
  7. Supervising and regulating the direct or indirect issuance and listing of shares overseas by domestic entities.
  8. Overseeing foreign securities and futures trading firms operating in China.
  9. Collecting and publishing market statistics.
  10. Exercising oversight over accounting firms and law firms providing services to the securities and futures industry.
  11. Investigating and enforcing CSRC laws and regulations, and imposing penalties for violations.

With its broad scope of responsibilities, the CSRC plays a pivotal role in ensuring the integrity and stability of China's financial markets.

CSRC's Firm Grip: Striking Down Financial Wrongdoings

As China's capital markets continue to evolve, regulatory authorities are vigilant against those who defy the laws. Much like the SEC in the U.S., the China Securities Regulatory Commission (CSRC) takes swift action against illegal practices. A notable incident occurred in March 2018 when the CSRC imposed an unprecedented fine of 5.67 billion yuan (about $900 million) on a domestic company for manipulating the share prices of newly-listed banks.

Several other instances have also resulted in disgorgement, penalties, trading bans, and imprisonment. The CSRC even maintains discipline within its ranks. In 2017, the head of the initial public offering (IPO) division at the Shenzhen and Shanghai exchanges was found guilty of corruption related to her regulatory duties. She received a life sentence as punishment.


The China Securities Regulatory Commission (CSRC) holds significant power in regulating China's securities industry, comparable to the SEC in the U.S. Led by Chairman Yi Huiman, the CSRC enforces strict measures and imposes severe penalties, ensuring fair and orderly markets. Its unwavering commitment to upholding the law shapes the future of China's financial landscape.

China Securities Regulatory Commission (CSRC)
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