On March 6, the China Securities Regulatory Commission (CSRC) officially issued the “Several Provisions on the Supervision of Short-Term Trading”, clarifying the relevant supervision arrangements for short-term trading by major shareholders, directors, supervisors and senior management, which will come into effect on April 7, 2026. The provisions, totaling 12 articles, aim to implement the requirements of the Securities Law, facilitate the entry of medium and long-term funds, further standardize the order of capital market transactions, and protect the legitimate rights and interests of investors.
The new rules focus on clarifying the scope of applicable subjects and securities varieties. It is stipulated that those who have the status of major shareholders, directors, supervisors and senior management when buying and selling, as well as those who do not have such status when buying but have it when selling, must abide by the short-term trading system. At the same time, it clearly includes depositary receipts in “other securities with equity nature”, refines supervision requirements, plugs supervision loopholes, and avoids supervision vacuums.
On the same day, Wu Qing, Chairman of the CSRC, revealed at the press conference during the Two Sessions that two important reform measures will be launched recently, including deepening the reform of the ChiNext Market and optimizing the refinancing mechanism. Among them, the overall plan for the ChiNext Market reform has basically taken shape and will be released and implemented at an appropriate time after improvement. In addition, during the “15th Five-Year Plan” period, the CSRC will improve the Chinese-style market stabilization mechanism, enrich counter-cyclical and cross-cyclical adjustment tools, and enhance the inherent stability of the market.
In other aspects of the capital market, the Shanghai Stock Exchange has recently taken self-regulatory supervision measures against 281 cases of abnormal securities transactions, focusing on monitoring ETFs with high premiums and stocks with delisting risk warnings, and reported 6 clues of suspected illegal and irregular cases. The Shenzhen Stock Exchange plans to expand the securities code range for real estate investment trusts (REITs), and activate a new range for commercial real estate REITs business to further improve the REITs market layout. A series of measures will promote the high-quality development of the capital market and improve the efficiency of investment and financing.
