China’s CSRC issued Administrative Penalty Implementation Rules for illegal
securities transfers in acquisition scenarios, effective Dec. 1, 2026. For
transfers that violate rules on suspending trading, the regulator will apply
either multiple-based fines or fixed fines: multiple-based fines will be levied
in graduated bands of 0x, 3x, 5x and 10x of illegal gains; where illegal gains
are under 1 mln yuan, fixed penalties will be set with ceilings of 3 mln, 5 mln
and 10 mln yuan. The rules add a higher-sanction clause for especially serious
cases—such as rapid one-way selling that causes a change in listed-company
control—allowing fines from 10 mln to 30 mln yuan. Article 11(2) limits fines
for these acquisition-transfer violations so they do not exceed the upper caps
for equivalent illicit share-reduction cases defined in Article 10.
