The General Office of the State Council recently forwarded the "Opinions on Further Doing a Good Job in Comprehensive Punishment and Prevention of Financial Fraud in the Capital Market" by China Securities Regulatory Commission, Ministry of Public Security, Ministry of Finance, People's Bank of China, China Banking and Insurance Regulatory Commission, and State-owned Assets Supervision and Administration Commission of the State Council.

According to the spokesperson of the China Securities Regulatory Commission, the issuance of the Opinions has pointed out the direction for doing a good job in comprehensive punishment and prevention of financial fraud in the capital market during the current period and the future, and will effectively promote all parties to further crack down on financial fraud, effectively protect the legitimate rights and interests of investors, comprehensively build a new pattern of comprehensive punishment and prevention of financial fraud, and provide strong support for promoting high-quality development of the capital market.

The Opinions clarifies five key measures: 1) Resolutely crack down and curb financial fraud in key areas. Seriously punish issuance of fraudulent stocks and bonds, resolutely crack down on systemic fraud and coordinated fraud, strengthen supervision over the abuse of accounting policies to implement fraud, and strengthen the crackdown on financial fraud in specific areas. 2) Optimize the regulatory enforcement system and mechanism for securities. Improve the mechanism for discovering clues, enhance the administrative law enforcement efficiency, and deepen the cooperation of law enforcement agencies. 3) Strengthen the all-round and three-dimensional accountability. Enhance the deterrence of administrative accountability and promote the increase in criminal accountability, and promote the improvement of the support mechanism for civil accountability. 4) Strengthen inter-agency coordination and central-local synergy. State-owned capital contributors strengthen supervision and management, financial regulatory departments enhance collaborative crackdown capabilities, and local governments bear responsibilities. 5) Normalize and extend the prevention and control of financial fraud. Enhance the endogenous constraints of corporate governance, strengthen the responsibility of intermediary agencies as "watchmen", improve relevant systems for financial information, and strengthen joint sanctions and social supervision.