The China Securities Regulatory Commission deploys special actions to crack down on and prevent financial fraud by listed companies

To further promote and continuously consolidate the effectiveness of the work to combat and prevent financial fraud in listed companies since the new “National Nine Rules,” the China Securities Regulatory Commission (CSRC) recently deployed a special campaign in 2026 to combat and prevent financial fraud in listed companies. Since the General Office of the State Council forwarded the “Opinions on Further Improving the Comprehensive Punishment and Prevention of Financial Fraud in the Capital Market” (Guo Ban Fa [2024] No. 34) issued by the CSRC and six other departments in July 2024, the CSRC has organized two rounds of special actions targeting the fight against and prevention of financial fraud in listed companies. The focus has been on prominent issues such as false transactions and fake trades, abuse of the total amount method to inflate revenue, and manipulating revenue recognition timing to embellish performance. A total of 263 clues related to various financial fraud cases (including major shareholders misappropriating listed company funds) have been investigated, with 107 administrative penalty decisions officially made (total fines and confiscations exceeding 3.3 billion yuan). Key cases such as Zitian Technology, Oriental Group, and Gao Hong Shares have been seriously investigated, and 18 companies involved in severe fraud, including Oriental Tong, Lifan Digital, and Changyao Holdings, have been forcibly delisted. (CSRC)