Securities Law of China (2020 Revision) · Yalla China
中华人民共和国证券法 / Securities Law of China (2020 Revision)
Enacted: 2019-12-28 ✅ Effective: 2020-03-01
📝 Overview
Regulates issuance and trading of securities in China, strengthens investor protection, and raises penalties for financial fraud and insider trading.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
The Securities Law revision (2020) includes: (1) transition from an approval to a registration system for securities issuance (full registration system); (2) raising penalties for market manipulation and insider trading to 10 times the illegal profits; (3) strengthening collective investor compensation lawsuit mechanisms. Foreigners can invest in Chinese A-shares through Stock Connect programs (Shanghai/Shenzhen with Hong Kong) or the QFII program for qualified foreign institutional investors.
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
Foreign investors in Chinese stocks are subject to Chinese securities law and should be aware of insider trading prevention rules.
📎 Official source
National People's Congress
🕒 Updated: 16 March 2026