Recently, the China Securities Regulatory Commission ("CSRC") has promulgated the revised Measures for the Administration of Stock Exchanges (the "Measures"), effective from January 1, 2018.
The Measures improve the internal governance structure of stock exchanges, set up a board of supervisors and further clarify the powers and functions of the general meetings, board of directors, board of supervisors and the general manager, and expressly state that its business rules formulated in accordance with the law are binding on all participants in the securities trading activities. The Measures clarify the stock exchanges' self-regulatory measures for abnormal trading behaviors and illegal shareholding reduction behaviors, require that a sound regulatory system be set up to supervise member-centered transactions, and further define the rights and obligations of members. The Measures require a stock exchange should fulfill self-regulatory management responsibilities in information disclosure of, and suspension and resumption of trading for listed companies, and further improve methods and measures in performing its front-line regulatory duties and preventing market risks, including real-time monitoring, restriction on transactions, on-site inspections, collecting punitive damages and so on.