CSRC to Revise the Code of Corporate Governance for Listed Companies

The China Securities Regulatory Commission (CSRC) has recently released the Code of Corporate Governance for Listed Companies (Draft Revision for Comment) (the "Draft") for public consultation until August 24, 2025.

The proposed revisions focus on four key areas: (1) improving the appointment, performance, and resignation management systems for directors and senior officers; (2) enhancing the incentive and restraint mechanisms for listed companies; (3) regulating the conduct of controlling shareholders and actual controllers; and (4) ensuring alignment with existing rules and regulations. Regarding the improvement of incentive and restraint mechanisms for listed companies, the Draft outlines the following requirements: first, listed companies should establish a remuneration management system and reasonably determine the remuneration structure and levels for directors and senior officers; second, it requires that the remuneration of directors and senior officers should consummate with the company's business performance and their individual performance, thereby encouraging them to create greater value for the company; and third, listed companies are required to improve payment mechanisms such as remuneration suspension and clawback provisions for directors and senior officers, and are encouraged to adopt deferred payment mechanisms.



(Source: http://www.csrc.gov.cn/csrc/c101981/c7573403/content.shtml)

Note: The link to the Chinese official website of the document is for your reference.