On July 11, Financial Stability and Development Committee under the State Council (FSDC) held the 36th meeting, vowing ‘zero tolerance’ for illegal conducts in China’s capital market, especially fraudulent issuance, financial fraud and other illegal conducts. FSDC also requires the CSRC to lead a working group on combating capital market illegal activities to further strengthen securities enforcement and judicial works. FSDC emphasizes first on improving standards, simplify procedures and strengthen supervision of delisting, aimed at forming a market-oriented and regular winnowing mechanism; second, on cracking down on major illegal cases resolutely, severely and rapidly in accordance with the law; and third, intensifying penalties. This is the fourth time the FSDC discussed topics with respect to increasing the cost of breach of law in the capital market since April.

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