The Supreme People's Court and the Supreme People's Procuratorate jointly issued the Decision on Amending the Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Law in Handling Criminal Cases of Insider Trading and Disclosure of Insider Information (hereinafter referred to as the "Amendment Decision"). The Amendment Decision shall come into effect on July 27, 2026.

The interpretation on the specific application of laws in handling criminal cases of insider trading and leakage of insider information has played a positive role in punishing crimes of insider trading and leakage of insider information since its implementation on June 1, 2012. In recent years, there have been new situations and changes in the crimes of insider trading and leaking insider information. Relevant laws in the securities and futures fields have also been revised. In order to ensure accurate, unified, and effective implementation of the law, and to punish related crimes more accurately and effectively, the Supreme People's Court and the Supreme People's Procuratorate have conducted in-depth investigations and research, extensively solicited opinions, repeatedly discussed and improved, and formulated the "Amendment Decision".

The revised decision adheres to the strict punishment of crimes such as insider trading and leaking insider information in accordance with the law, assists in the construction of the rule of law in the capital market, actively creates an open, fair and just market environment, and effectively safeguards the legitimate rights and interests of investors.

Further clarify the stricter legal responsibilities of key entities. A new provision is added stating that "the time when the controlling shareholder, actual controller, or relevant decision-makers disclose the preliminary intention to form insider information to closely related personnel, or the time when relevant transactions are conducted based on this preliminary intention, shall be deemed as the initial time of the motion". Clear and specific regulations should be made on the sensitive period of insider information related to entities that play a key role in generating insider information, to prevent them from using time differences for insider trading or leaking insider information.

Further improve the reasons for preventing insider trading. Amend the relevant provisions of Article 4 of the Interpretation to emphasize that the acquisition of listed companies must comply with the acquisition purpose and prevent the acquisition personnel of listed companies from using "hidden warehouses" to engage in insider trading; Emphasis must be placed on the authenticity and legality of scheduled transactions to prevent individuals from using false or illegal contracts, instructions, or plans to evade legal sanctions; Clarify the openness of the third item "disclosure" in this article, fairly protect the legitimate rights and interests of all types of investors, adhere to strict control of the defense reasons that do not constitute insider trading, and continue to weave a dense legal net.

Next, the Supreme People's Court and the Supreme People's Procuratorate will accurately understand and apply the "Amendment Decision", and severely punish crimes such as insider trading and leaking insider information in accordance with the law, providing more powerful judicial guarantees for the stable operation of the capital market. (Looking into the New Era)