Paradigm shift in securities substantive regulation in the context of the registration system

China’s securities registration-based reform shifts regulatory focus from administrative approval to market-driven mechanisms, yet introduces challenges such as fragmented oversight, information disclosure inefficacy, and unintended consequences of strict liability models. This study examines risks from decentralized review processes, including regulatory arbitrage and exchange competition, and highlights limitations in curbing retail investor herd behavior. It proposes a responsive framework integrating interactive supervision, compliance governance, and multi-stakeholder collaboration to balance market efficiency with investor protection under the new regime.