CSRC: It is proposed to clarify that illegal gains refer to the benefits obtained through illegal securities and futures activities or the losses avoided.

The China Securities Regulatory Commission has conducted research and drafted the "Measures for Determining Illegal Gains in Administrative Penalty Cases of the China Securities Regulatory Commission" and is now soliciting opinions from the public. The opinions point out that, based on the "Administrative Penalty Law" and the "Administrative Penalty Measures for Securities and Futures Illegal Activities," as well as referring to the definitions of illegal gains in the "Criminal Judicial Interpretation on Insider Trading" and "Criminal Judicial Interpretation on Market Manipulation," it is clarified that illegal gains refer to the profits obtained or losses avoided through illegal activities in securities and futures. Calculating illegal gains involves both legal and professional attributes and is complex in nature. Therefore, it is necessary to ensure both the "rigidity" of the rules to limit excessive discretionary power and the "flexibility" of the rules to accommodate special circumstances. Based on enforcement practices, it is specified that illegal gains should be determined based on the nature of the illegal activities, and the China Securities Regulatory Commission is allowed to establish special provisions for determining illegal gains for specific types of securities and futures illegal activities.