Core Viewpoint - The China Securities Association is revising the "Regulations for Securities Analysts Participating in External Evaluations," introducing stricter regulatory constraints to enhance the quality of external evaluations and ensure analysts fulfill social responsibilities and adhere to Chinese financial culture [1][4]. Group 1: Key Changes in Regulations - The introduction of a commitment letter system for evaluation organizers, requiring them to submit a commitment letter to the China Securities Association (CSRC) before each evaluation, effectively creating a "firewall" to filter out non-compliant evaluations [1][3]. - Organizers must submit the commitment letter and qualification materials by August 31 each year, tightening the timeline and documentation requirements to reduce the space for non-compliant evaluations [3]. - The new regulations specify violations by organizers, such as unauthorized adjustments to evaluation rules or results, allowing the CSRC to take actions like revoking accepted commitment letters [3][5]. Group 2: Expanded Responsibility and Compliance - The revised regulations broaden the scope of responsibility from individual analysts to include their research teams, linking team accountability to individual compliance [4][5]. - If an analyst is under investigation, their entire team will lose eligibility for evaluations, emphasizing collective responsibility within research teams [4][5]. - The regulations outline six specific situations that restrict participation in evaluations, including administrative penalties and investigations by the CSRC [5]. Group 3: Changes in Evaluation Criteria and Incentives - The new regulations clarify that evaluation results cannot be used as a basis for salary incentives, shifting the focus from rankings to professional and social value [6][7]. - Analysts' social responsibility and adherence to Chinese financial culture will now be included in evaluation criteria, promoting a shift from external ranking pursuits to enhancing professional and social value [7]. - This adjustment aims to encourage analysts to prioritize serving investors and the capital market, fostering a healthier industry environment [7].

Core Viewpoint - The recent revision of the "Regulations on Securities Analysts' Participation in External Evaluations" aims to enhance the accountability and ethical standards of securities analysts in China, incorporating social responsibility and adherence to Chinese financial culture into their evaluation criteria [1][3]. Summary by Sections Revision Overview - The revised regulations clarify that they apply to securities companies, their research departments, teams, and analysts, and also extend to securities investment advisors participating in evaluation activities [2]. - New evaluation requirements for securities companies regarding the organizing institutions of evaluations have been introduced, emphasizing the need for compliance, experience, and fairness in the evaluation process [2]. - Organizers of external evaluations must submit a commitment letter to the China Securities Association (CSRC) before conducting evaluations, with the acceptance of this letter being verifiable on the CSRC's official website [2]. Analyst Evaluation Criteria - Securities companies are now required to include analysts' fulfillment of social responsibilities and adherence to Chinese financial culture in their performance assessment metrics [2][3]. - This change signifies a shift in the evaluation of analysts, moving beyond mere external rankings and performance metrics to include their contributions to the real economy and positive industry influence [3]. Impact on the Industry - The revisions are expected to further curb the utilitarian tendencies in evaluations and promote a healthier and more sustainable development of the securities research industry [3].