China: Securities

For the first time, PRC courts have asserted jurisdiction over securities fraud claims brought by Mainland investors against offshore-incorporated, Hong Kong-listed companies. The Beijing Financial Court's landmark ruling establishes that harm to domestic investors alone can trigger extraterritorial application of PRC Securities Law, even when securities transactions occur outside Mainland China.

China's securities regulator has launched a comprehensive crackdown on illegal cross-border securities activities, raising critical questions about the legal boundaries between legitimate offshore brokerage services and prohibited domestic operations. When mainland Chinese investors voluntarily travel to Hong Kong to open securities accounts with licensed brokers, does this constitute illegal domestic business activity, and how do courts determine the validity of resulting margin financing agreements?

2026年1月1日起，新修订的《上市公司治理准则》（"《治理准则》"）已经正式实施。