[China Securities Regulatory Commission: Four measures will be launched in the near future to improve the penalty rules for illegal shareholding reductions] On October 19, Wu Qing, Chairman of the China Securities Regulatory Commission, attended the opening ceremony of the 2026 Financial Street Forum Annual Meeting and stated that we will strengthen strict compliance with the law and vigorously cultivate a standardized and healthy market ecology. Comprehensively implement the requirements of the "Five Major Supervisions", further strengthen the supply of systems and mechanisms, and resolutely maintain an open, fair and just market order. Wu Qing introduced that four measures will be launched in the near future. The first is to prepare for the establishment of a fund industry operation monitoring center, which will be responsible for the registration of private equity fund shares, the collection of public and private equity information, and risk monitoring, and strive to improve the effectiveness of risk prevention, control, and supervision in the fund industry. The second is to issue opinions on the safe and compliant application of artificial intelligence in securities and futures, improve regulatory norms such as business development and data security, promote safe and efficient application in key scenarios such as venture capital and investment research, and guide technology for good. The third is to improve the penalty rules for illegal shareholding reductions, adhere to the principle that excessive penalties should be proportionate, and no indulgence is in vain, and refine the identification standards to more accurately and effectively crack down on illegal shareholding reductions. The fourth is to formulate and issue guidance on advance compensation in the securities market, further clarify applicable entities and implementation procedures, promote advance compensation in accordance with the law, quickly and efficiently, and better safeguard the legitimate rights and interests of small and medium-sized investors.