CSRC and Seven Agencies Launch Joint Crackdown on Illegal Cross-Border Securities and Forex Activities

To further prevent and combat illegal cross-border securities, futures, and fund operations, and to protect the legitimate rights and interests of investors, the China Securities Regulatory Commission (CSRC), Ministry of Industry and Information Technology, Ministry of Public Security, People's Bank of China, State Administration for Market Regulation, National Financial Regulatory Administration, Cyberspace Administration of China, and the State Administration of Foreign Exchange (SAFE) have jointly issued the "Comprehensive Plan for Rectifying Illegal Cross-Border Securities, Futures, and Fund Operations" (the "Rectification Plan"), approved by the State Council.

The Rectification Plan focuses on banning illegal cross-border operations by overseas financial institutions and establishing a long-term mechanism that combines comprehensive policy measures with root-cause treatment. This aims to clean up the capital market ecosystem, protect the healthy development of capital markets, and guide investors to conduct overseas investments through legal channels.

The overall goal of the Rectification Plan is to fully ban illegal cross-border operations by overseas securities, futures, and fund institutions through a two-year intensive campaign, achieving the target of "firmly banning illegal activities and orderly clearing existing violations." Targets include: overseas institutions illegally conducting cross-border securities, futures, and fund business; domestic affiliated or cooperative entities assisting overseas institutions in illegal cross-border operations; illegal intermediaries recruiting domestic investors; and internet platforms and self-media accounts illegally publishing related information.

With regard to foreign exchange management, anti-money laundering, cybersecurity and information management, and personal information protection violations by the relevant parties, authorities will investigate and impose penalties in accordance with the law. For serious violations, criminal liability will be pursued.

The Rectification Plan also covers management of related payment channels and fund flows, internet platform governance, and investor education and warning mechanisms, with implementation assigned to the eight participating agencies.