中国版萨班斯法案：20年长牛的起点

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released a draft of the "Regulations on the Supervision and Management of Listed Companies," marking the first dedicated administrative regulation for listed company supervision in China [20][34]. Group 1: Comparison with SOX Act - The new regulations are seen as a system that draws from but surpasses the Sarbanes-Oxley Act (SOX), aiming to enhance trust in the capital market and curb issues like financial fraud and information disclosure violations [26][34]. - The regulations are expected to lead to a more robust A-share market, where investors can confidently select quality listed companies, and intermediary institutions will be standardized [26][34]. Group 2: Key Areas of Regulation - Corporate Governance: The regulations require a majority of independent directors in the audit committee, with a professional accountant as the convener, enhancing the committee's role as a "financial watchdog" [9][26]. - Internal Control: The focus shifts from financial reporting to comprehensive risk management, linking internal control failures to delisting risks [10][27]. - Information Disclosure: The regulations extend oversight to the source of information disclosure, introducing a mechanism for recovering ill-gotten gains from financial fraud [11][28]. - Audit Supervision: While not establishing an independent body like PCAOB, the regulations strengthen the accountability of audit committees and financial advisors [13][29]. - Executive Accountability: The regulations emphasize individual accountability for executives, including penalties for misconduct, extending to controlling shareholders [14][30]. - Mergers and Acquisitions: The regulations provide specific guidelines for M&A activities, balancing support for market-driven acquisitions with strict oversight to prevent fraudulent practices [15][31]. - Investor Protection: Enhanced mechanisms for investor compensation and efficient legal recourse are introduced, including cash options for dissenting shareholders during delisting [16][32]. - Legal Responsibility: The regulations establish a comprehensive accountability system with increased penalties for violations, aiming to deter misconduct effectively [17][33]. Group 3: Future Outlook - With the implementation of these regulations, it is anticipated that the A-share market will enter a bullish phase, reflecting a significant transformation in the regulatory landscape [18][34].