China is drafting a law to better protect stock investors from cases of brokerage bankruptcy or regulatory takeover. Especially due to mismanagement and misappropriation. A senior official from the China Securities Regulatory Commission says the China Securities Protection Fund Law is being mapped out as part of the country's efforts to safeguard stock investors. He says one of their primary tasks is to create an improved legal framework to protect stock investors in China.

The Regulatory Commission has put forward six measures to reduce the possibility of investor interests being compromised. Among them are establishing a strict threshold for new entries and creating a third-party deposit and management system. Other measures being proposed include developing a fair and transparent information disclosure system as well as a risk-control system... and a compensation system.