China – GVT Revised Securities Law

China – GVT Revised Securities Law

On 29 February 2020, CHI GVT revised and adopted securities law.

  • Securities law has been revised and adopted on CHI PRL 15th meeting, 28 December 2019.
  • Follows fourth reading of securities law submitted on 24 December 2019.


  • Registration-based system implemented for IPOs; companies no longer need advance approval from regulators and they are not required to be profitable before listing.
  • Stock exchanges to process and examine listings and report to CSRC for registration.
  • Strengthened protection of investors, especially small and individual investors.
  • Harsher penalties for insider trading and company disclosure of incorrect information.

Stock Exchanges

  • SSE and SZSE have issued provisions on information disclosure for listed companies.
  • SZSE has issued disclosure template for changes in listed company shareholdings and disclosure template for listed company proposed appointment of accounting firms.
  • SZSE has issued revised guidance on the standardized operation of listed companies after integrating and streamlining main board and SME composite board guidelines.


  • Revised securities law will be effective 1 March 2020.

1 March  2020 Update

  • On 1 March 2020, CHI CSRC issued rules for SSE, SZSE re bond registration system.
  • Information disclosed by issuer must be true and accurate and shall not be misleading.
  • Urges securities institutions to fulfill due diligence obligations and role of "gatekeeper".
  • Repealed 2014 notice on transfer services for corporate bonds once new law effective.
  • In implementing new securities law, stock exchanges are working to ensure smooth transition, clarify standards for market participants and improve the listing system.
  • CHI NDRC issued notice on implementation of the new registration system, clarified conditions for bond issuers and supervisory responsibilities of provincial departments.