On December 30, in light of Minmetals Securities' establishment of a RMB 210 million advance compensation fund to address the false statements made by Guangdao Digital, with the China Securities Investor Protection Fund Corporation Limited appointed as the administrator, the CSRC issued a statement. The CSRC clarified that advance compensation constitutes one of the various dispute resolution mechanisms for securities disputes as outlined in the Securities Law. According to the law, controlling shareholders, actual controllers, securities firms, and other relevant issuers have the option to voluntarily set up special funds to negotiate and achieve civil settlements with qualified investors.

As a non-profit organization, the China Securities Investor Protection Fund Corporation Limited takes on the responsibility of managing and operating the fund on a daily basis, free of charge, upon receiving such mandates. This arrangement offers crucial support and services for advance compensation initiatives, ensuring the effective protection of investors' legitimate rights and interests.

The CSRC expresses its support for relevant market institutions and personnel who take the initiative to implement advance compensation in compliance with regulations. Such proactive measures are aimed at resolving market disputes in an active and efficient manner, thereby safeguarding investors' legitimate rights and interests in a convenient and streamlined process.