How does the CSRC enhance market integrity?

The choice that discusses the enforcement of regulations governing fair trading practices and penalizing misconduct accurately reflects a primary function of the China Securities Regulatory Commission (CSRC) in maintaining market integrity. The CSRC is committed to creating a fair, transparent, and efficient capital market. By implementing and enforcing strict regulations, the CSRC works to ensure that all market participants adhere to ethical standards and legal requirements. This involves monitoring trading activities for irregularities, investigating potential fraud or misconduct, and imposing penalties when necessary. Such actions deter unethical behaviors, thereby fostering a stable trading environment where investors can have confidence.

The other choices suggest roles or strategies that do not align with how the CSRC is designed to operate. For instance, providing investment advice to companies may create conflicts of interest and could undermine the regulatory body’s objective of impartiality. Allowing companies to self-regulate may lead to inconsistency and potential abuse, ultimately harming the integrity of the market. Promoting high-risk investment strategies could also jeopardize investor interests and is generally contrary to the CSRC's mandate to protect investors and ensure market stability. Thus, the enforcement of regulations is the most appropriate method for enhancing market integrity.