China unveils regulation on securities, futures violations

Investors are seen at a stock exchange in Hangzhou, capital of east China's Zhejiang Province, March 4, 2019. (Xinhua/Long Wei)

Chinese Premier Li Keqiang has signed a State Council decree unveiling a regulation on new law-enforcement methods for individuals and corporations violating laws in the country's capital market.

The new regulation, which will take effect on Jan. 1, 2022 details fresh measures for government enforcement departments in handling individuals and corporations that break securities or futures laws but promise to rectify illegal behaviors, compensate investors for losses and eliminate negative effects.

The promises made by violators should be approved by the securities regulatory bodies under the State Council, the regulation states, adding that after the approval and implementation of the promises, law-enforcement bodies shall terminate investigations into the violators.

The document, which also mentions the power-restriction mechanism for supervisory bodies, will ensure the fair implementation of law-enforcement on individuals and corporations who violate securities or futures laws but make the aforementioned promises, as well as protecting the lawful rights and interests of investors, and improving the efficiency of law enforcement.