Core Viewpoint - The article emphasizes the importance of accurate and complete information disclosure in the securities and futures market, highlighting the detrimental effects of controlling shareholders and actual controllers who exploit their positions to the detriment of listed companies. The regulatory framework is evolving to impose severe penalties on violators, thereby reinforcing legal protections for investors and the market [1][4]. Group 1: Regulatory Actions and Penalties - On October 24, Changjiang Runfa Health Industry Co., Ltd. (referred to as "Changjiang Health") received an administrative penalty notice for failing to disclose related party non-operating fund occupation and significant omissions in periodic reports [1]. - The China Securities Regulatory Commission (CSRC) initiated a case against Changjiang Health and Runfa Group for information disclosure violations, leading to the delisting of Changjiang Health due to its stock price falling below 1 yuan for twenty consecutive trading days [2]. - Following its delisting, Changjiang Health was subject to a proposed fine of 53.3 million yuan, with key executives facing lifetime bans from the securities market due to their roles in the violations [3]. Group 2: Strengthening Regulatory Framework - The implementation of the "Administrative Penalty Discretionary Basic Rules" in March 2025 aims to enhance the regulatory framework, allowing for heavier penalties in cases of significant subjective fault and ensuring that criminal behavior is promptly referred to judicial authorities [4]. - In 2024, the CSRC reported a 51% increase in the number of cases referred to public security for suspected criminal activities, indicating a stronger enforcement approach against securities violations [5]. - The joint guidelines issued by the Supreme Court and the CSRC in May 2025 focus on strictly punishing those involved in financial information disclosure fraud, ensuring that primary offenders bear the main compensation responsibilities [6].