The CSRC speaks out, concerning the entry of medium- and long-term funds into the market

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On March 27, Cheng Herong, Chief Lawyer of the China Securities Regulatory Commission (CSRC), said at the Boao Forum for Asia 2026 Annual Conference “Creating a Sound Market Environment and Advocating Long-Term Value Investment” sub-forum that the CSRC will further strengthen the rule-of-law development in capital markets, improve the system, enhance mechanisms, and advance in depth the related work on rational investment, value investment, and long-term investment.

Cheng Herong said that in 2025, various types of medium- and long-term funds significantly increased their efforts to enter the market. Combined net purchases of A shares exceeded 800 billion yuan by social security funds, insurance funds, annuity funds, public funds, and broker-dealer proprietary trading. In addition, considering funds such as related purchases of equity-type funds, and capital provided by central SOE listed companies’ share buybacks and share increases, the actual新增入市 scale of medium- and long-term funds exceeded 1 trillion yuan. Among listed companies that were profitable and met the dividend conditions, 97% implemented dividends; the total dividend amount was 2.55 trillion yuan, setting a new historical high.

Improve policies to draw medium- and long-term funds into the market

A recent public solicitation of comments on the draft of the Financial Services Law makes it clear that it “supports medium- and long-term funds to enter the market and enhances the inherent stability of capital markets,” and the legal foundation for rational investment, value investment, and long-term investment has been further strengthened.

Cheng Herong introduced that since the new “Nine Articles on Capital Markets” were issued more than two years ago, the CSRC has, successively, formulated and revised and issued more than 50 regulatory rules and normative documents, including the “Measures for the Administration of Information Disclosure by Listed Companies,” the “Interim Measures for the Administration of Share Reductions by Shareholders of Listed Companies,” and the “Several Opinions on Strengthening the Protection of Small and Medium-Sized Investors in the Capital Market.” It has worked with relevant parties to issue the “Guiding Opinions on Promoting Medium- and Long-Term Funds to Enter the Market”; it has released a series of policy documents including the “Opinions on Tightening the Gatekeeping of Issuance and Listing Admission to Improve the Quality of Listed Companies from the Source,” the “Opinions on Strictly Implementing the Delisting System,” the “Opinions on Strengthening the Regulation of Securities Companies and Public Funds and Accelerating the Building of First-Class Investment Banks and Investment Institutions,” and CSRC Regulatory Guidance No. 3—“Guidelines for Listed Companies on Cash Dividends.” It has also pushed forward measures such as improving long-cycle performance assessment mechanisms for insurance, annuity, and social security funds, promoting public fund reform, further clarifying and optimizing the alignment of interests among fund companies, fund managers, and investors, and gradually implementing relevant tax system measures.

“While improving institutional rules, the CSRC, together with public security and judicial authorities, strengthens regulatory enforcement and strictly investigates a large number of securities-related criminal cases that harm investors’ lawful rights and interests, such as fraudulent issuance, financial statement fraud, market manipulation, and insider trading.” Cheng Herong said that in 2025, the CSRC handled 701 cases of violations of laws and regulations in the securities and futures sector, with fines and confiscations totaling 15.474 billion yuan, and enforcement efforts increased significantly. It supported and cooperated with judicial authorities to enhance the adjudication of representative lawsuits by securities representatives. In the false statements civil compensation case of Jin Tongling (300091), the company was ordered to compensate more than 40,000 investors for investment losses exceeding 770 million yuan, thereby effectively protecting investors’ lawful rights and interests.

Strengthen the legal foundation for rational investment, value investment, and long-term investment

Cheng Herong pointed out that next, the CSRC will further strengthen the rule-of-law development in capital markets, improve the system, enhance mechanisms, and advance in depth the related work on rational investment, value investment, and long-term investment.

First, it will organize and carry out assessments of the implementation effectiveness of the Securities Law, research and summarize experiences and practices that are conducive to promoting rational investment, value investment, and long-term investment, extract them and elevate them into national legal provisions for the securities market, and further strengthen the legal foundation for rational investment, value investment, and long-term investment.

Second, it will continue to promote revisions to the Law on Securities Investment Funds, and convert the achievements of related practices from public fund reform into law. In order to advance reform on the investment side, build first-class investment institutions, enhance the professional capabilities and investment level of institutional investors, and give full play to the professional main force role of securities investment funds in fulfilling the mission and responsibilities of rational investment, value investment, and long-term investment, it will provide stronger legal safeguards.

Third, it will promote the formulation of regulations on the supervision and administration of listed companies, revise and improve the regulations on the supervision and administration of securities companies, further improve the quality of listed companies, standardize and optimize service activities by securities-related and securities-futures operating institutions to investors, and create a more favorable market ecosystem for rational investment, value investment, and long-term investment.

Fourth, it will coordinate with relevant parties to thoroughly implement policy measures promoting rational investment, value investment, and long-term investment, including performance evaluation, assessment, compensation, and taxation. It will further leverage the positive role of related policies in attracting long-term funds and enhancing the inherent stability of the market.

Fifth, it will organize systematic reviews and assessments of existing CSRC securities and futures rules and normative documents, as well as institutional provisions in related business rules regarding issuance, listing, supervision of securities and futures fund operating institutions, market trading, and so on, to dynamically modify and improve them.

Sixth, it will strengthen day-to-day regulatory guidance: tighten the registration review gatekeeping for enterprises’ issuance and listing, and provide investors with more high-quality securities and financial products with investment value; carry out a new round of special actions on corporate governance to better safeguard investors’ participation in corporate governance; improve the quality of information disclosure to better serve investors’ scientific and rational investment decision-making; guide listed companies to implement cash dividends in accordance with regulations, and strengthen the market foundation for value investment and long-term investment; strengthen oversight and administration of market trading activities such as share reductions and algorithmic/procedural trading, creating a fair market trading environment for all types of participants; and strengthen oversight and administration of internal control, compliance, and business activities of securities and futures operating institutions, including investment banking, brokerage, asset management, margin trading and securities lending, and investment consulting, so as to better play the intermediary and professional role of securities and futures operating institutions in providing targeted services for rational investment, value investment, and long-term investment.

Seventh, it will strictly enforce the law and strengthen investor protection. It will focus on severely punishing securities and futures illegal activities that infringe investors’ rights and interests and disrupt market order, such as fraudulent issuance, financial statement fraud, market manipulation, insider trading, and fraud against clients. Where a crime is constituted, it will transfer the case to public security and judicial authorities in accordance with law. It will cooperate with judicial authorities to research and formulate judicial interpretations on civil damages for insider trading and market manipulation, advance in depth representative securities litigation, increase the application of the early compensation制度, improve the effectiveness and quality of investor publicity and education, and better embed investor publicity and education into business processes in which securities and futures operating institutions develop clients and provide services.

(责任编辑：王治强 HF013)

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