Core Viewpoint - The China Securities Regulatory Commission (CSRC) is intensifying its crackdown on financial fraud by targeting actual controllers and major shareholders of listed companies, emphasizing the principle of "chasing the principal offender" to enhance legal deterrence and prevent illegal activities from the source [2][6][8]. Summary by Sections Administrative Penalties - The CSRC has issued administrative penalties against *ST Yuancheng, proposing a fine of 28 million yuan for its actual controller, Zhu Changren, due to severe financial fraud [1][4]. - Since 2025, 39 actual controllers have been penalized, totaling 286 million yuan in fines [3]. Focus on Actual Controllers - The CSRC has highlighted the responsibility of actual controllers in financial fraud cases, as they often orchestrate and benefit from such illegal activities [2][4][8]. - In the case of *ST Guangdao, the actual controller Jin Wenming was fined 15 million yuan and banned for life from the securities market for his role in financial fraud [5]. Legal Framework and Enforcement - The CSRC is enhancing its enforcement mechanisms, including administrative, civil, and criminal liabilities, to ensure accountability among actual controllers [9][10]. - The penalties for financial fraud can range from 1 million to 10 million yuan for major shareholders and actual controllers, with additional fines for directly responsible personnel [9]. Challenges and Recommendations - There are ongoing challenges in enforcing penalties, such as difficulties in evidence collection and the need for improved investor compensation mechanisms [10][11]. - Experts suggest implementing a dynamic adjustment mechanism for administrative penalties and enhancing the legal framework to better protect investors and hold actual controllers accountable [10][11].