Core Viewpoint - The China Securities Regulatory Commission (CSRC) and the Ministry of Finance have revised the whistleblower reward regulations to enhance the incentive for reporting violations in the securities and futures markets, aiming to improve the effectiveness of the regulatory framework [1][2]. Group 1: Revised Regulations - The new whistleblower reward regulations increase the reward percentage from 1% to 3% of the penalties collected from violations [1]. - The maximum reward for providing significant violation leads has been raised from 100,000 yuan to 500,000 yuan [1]. - For cases with nationwide impact or particularly large amounts involved, the maximum reward has been unified to 1 million yuan, up from previous caps of 300,000 or 600,000 yuan [1]. Group 2: Previous Regulations and Their Limitations - The previous regulations issued in 2020 did not meet expectations, primarily due to low reward amounts, which were insufficient to attract whistleblowers [2]. - The maximum reward of 10,000 yuan for significant leads and 30,000 yuan for cases with major impact was deemed inadequate compared to the risks faced by whistleblowers [2]. Group 3: Comparison with International Standards - The U.S. SEC's whistleblower program, established under the Dodd-Frank Act, offers rewards ranging from 10% to 30% of penalties, significantly higher than the current standards in China's A-share market [3]. - Since 2012, the U.S. SEC has awarded over $1 billion to more than 200 whistleblowers, indicating the effectiveness of higher reward standards in encouraging reporting [3]. - It is suggested that China could adopt a similar approach by increasing the reward percentage to 10% and removing the cap on rewards to enhance the attractiveness of the whistleblower mechanism [3].