The China Securities Regulatory Commission issues "Several Regulations on Short-Term Trading Supervision"

The China Securities Regulatory Commission (CSRC) has issued the “Several Provisions on Regulation of Short-term Trading.” To implement the short-term trading supervision system stipulated in the Securities Law and facilitate medium- and long-term funds entering the market, the CSRC has formulated and issued the “Several Provisions on Regulation of Short-term Trading” ( (hereinafter referred to as the “Provisions” )), which shall come into effect on April 7, 2026.

Based on a systematic review of legislative, judicial, and regulatory practices at home and abroad, the “Provisions” respond to market concerns and further clarify the regulatory arrangements concerning short-term trading by major shareholders and directors, supervisors, and senior management personnel. The “Provisions” consist of twelve articles. The main contents include:

First, clarifying the applicable subjects and scope of securities. The Provisions stipulate that when buying and selling both involve major shareholders and directors, supervisors, and senior management personnel, and when the relevant person does not hold but sells securities, they must comply with the short-term trading regulations. The Provisions define “other securities with equity characteristics” to include depositary receipts, callable exchangeable bonds, convertible bonds, and others, and further specify detailed regulatory requirements.

Second, clarifying the standards for identifying and calculating holding and trading time points. The Provisions specify that the trading time points are the securities transfer registration dates. The shareholding proportion of major shareholders shall be calculated by combining the shares already issued domestically and overseas in the same listed or listed-on-market company. The number of securities held by overseas investors through different channels shall also be combined for calculation, and the Provisions connect with relevant rules.

Third, clarifying the circumstances under which exemptions apply.