China’s CSRC issued Administrative Penalty Implementation Rules for illegal securities transfers in acquisition scenarios, effective Dec. 1, 2026. For transfers that violated 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

China’s CSRC issued Administrative Penalty Implementation Rules for illegal securities transfers in acquisition scenarios, effective Dec. 1, 2026. For transfers that violated 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.