CSRC: Fully consolidate the steady and positive momentum of the capital market

The Party Secretary and Chairman of the China Securities Regulatory Commission (CSRC), Wu Qing, recently stated at the symposium with listed companies on the “14th Five-Year Plan” for the capital market that the CSRC will develop and implement the “14th Five-Year Plan” for the capital market with high quality, fully consolidating the steady and positive momentum of the market, and will accelerate the launch of deepening reforms on the Growth Enterprise Market (GEM).

Wu Qing said that the CSRC will comprehensively, profoundly, and accurately understand and grasp the important deployments of the Fourth Plenary Session of the 20th CPC Central Committee, strengthen research on major issues related to reform, development, and stability of the capital market during the “14th Five-Year Plan” period, unify strategic needs with practical possibilities, and align market demands with regulatory goals, ensuring high-quality development and implementation of the “14th Five-Year Plan” for the capital market.

He emphasized that the work should focus on risk prevention, strengthened regulation, and promoting high-quality development. The CSRC will make every effort to consolidate the positive momentum of the market, focus on deepening comprehensive reforms of investment and financing, improve institutional inclusiveness and adaptability, accelerate reforms of the GEM, continuously promote the reform and implementation of the STAR Market, enhance the convenience, flexibility, and attractiveness of refinancing systems, promote high-quality integration and development of the Beijing Stock Exchange and the New Third Board, expand the coverage and radiation of multi-level markets, and more effectively support the construction of a modern industrial system and the development of new productive forces. The CSRC will actively serve the development goals of the “14th Five-Year Plan” and the building of a strong financial nation. Wu Qing also stated that listed companies are the foundation of the capital market; they should focus on their main business, improve governance, strive to enhance development quality, and increase their ability to deliver returns to investors, providing a solid support for high-quality market development.

During the symposium, participants offered specific suggestions on how to develop the “14th Five-Year Plan” for the capital market, improve institutional inclusiveness and adaptability, and enhance the quality and investment value of listed companies. Key suggestions included: continuously optimizing issuance and listing system rules to better accommodate emerging industries, future industries, and the transformation and upgrading of traditional industries; improving the efficiency of refinancing for listed companies to better activate the M&A and restructuring market; fostering patient capital and promoting long-term funds entering the market to better match the long-cycle needs of industrial development; improving mechanisms for dividends, buybacks, and incentives to urge listed companies to further enhance operational compliance and information disclosure; increasing policy support for the globalization of listed companies to help cultivate world-class enterprises, among others.

The “Suggestions of the Central Committee of the Communist Party of China on Formulating the 14th Five-Year Plan for National Economic and Social Development” proposed to improve the inclusiveness and adaptability of the capital market system and to develop a coordinated investment and financing function. It advocates actively developing direct financing channels such as equity and bonds, and steadily advancing futures, derivatives, and asset securitization. Recently, the CSRC has conducted extensive research on the “14th Five-Year Plan” for the capital market, holding multiple forums including symposiums with listed companies and industry organizations, as well as expert consultations on the plan. The CSRC stated that it will continue to deepen comprehensive reforms of investment and financing, improve system inclusiveness, adaptability, competitiveness, and attractiveness, strive for qualitative improvements and reasonable quantitative growth, and effectively enhance market stability. (Reporter: Wu Lihua)

(Edited by: Wen Jing)

Keywords: Capital Market