Core Viewpoint - The China Securities Regulatory Commission (CSRC) has revised and officially implemented the "Securities Company Classification Evaluation Regulations," marking the first name change since its introduction in 2009, with significant adjustments aimed at enhancing the operational capabilities and compliance of securities firms [1][5]. Summary by Sections Changes in Regulations - The new regulations introduce four major changes compared to the 2020 version, including adjustments to the scoring rules, emphasizing the importance of compliance, and supporting the differentiated development of small and medium-sized securities firms [1][2][4]. Scoring Adjustments - The revised rules allow for a reduction in penalty points for firms that actively seek administrative commitments or engage in advance compensation, with a maximum deduction of 1 point, significantly easing the penalty pressure for proactive compliance [5][6]. - The scoring system has been expanded to cover a wider range of violations, with severe infractions leading to direct downgrades in ratings, particularly for actions like misappropriating client assets or providing false financial information [2][11]. Emphasis on Functional Role - The regulations highlight the functional role of securities firms, shifting the focus from purely profit-driven metrics to enhancing their service capabilities in supporting national strategies and the real economy [3][12][13]. - The first article of the regulations explicitly states the importance of guiding firms to better fulfill their functional roles, indicating a significant shift in regulatory focus [13]. Support for Small and Medium-sized Firms - The new regulations eliminate the scoring advantage based on total operating revenue, thereby reducing the emphasis on size and promoting efficiency and specialized operations among smaller firms [4][16]. - The scoring criteria for various business income rankings have been expanded from the top 20 to the top 30, allowing more small and medium-sized firms to benefit from additional points and improve their ratings [4][16]. Recommendations for Supporting Small Firms - Suggestions for supporting small and medium-sized securities firms include establishing clear functional evaluation standards, simplifying approval processes for innovative business trials, and providing liquidity support mechanisms to mitigate short-term risks [17][18].