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

The Party Group Secretary and Chairman of the CSRC, Wu Qing, said at a symposium with listed companies on the “15th Five-Year Plan” (”XV” ) for the capital market held recently that the CSRC will work to formulate and implement the “XV” plan for the capital market with high quality, make every effort to consolidate the momentum of a steady yet positive capital market, and promptly roll out reforms to deepen the ChiNext Board (GEM) reform.

Wu Qing said that the CSRC will fully, deeply, and accurately study, understand, and grasp the important arrangements of the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China, strengthen research on major issues concerning reform, development, and stability of the capital market during the “XV” period, and unify strategic needs with what is feasible in practice, as well as unify what the market needs with what regulators intend, thereby formulating and implementing the “XV” plan for the capital market in a high-quality manner.

He emphasized that the CSRC must closely follow the main line of work of preventing risks, strengthening regulation, and promoting high-quality development, make every effort to consolidate the momentum of a steady yet positive capital market, and focus on continuously deepening the comprehensive reform of capital market investment and financing, as well as improving the inclusiveness and adaptability of the system. The CSRC will promptly roll out reforms to further deepen the ChiNext Board reform, continue to push the implementation of the Science and Technology Innovation Board (STAR Market) reforms to take root, and enhance the convenience, flexibility, and attractiveness of the refinancing system. The CSRC will also promote high-quality integrated development of the Beijing Stock Exchange (BSE) and the National Equities Exchange and Quotations (NEEQ, New Third Board), strengthen the coverage and radiation capacity of a multi-tier capital market, support more effectively and more efficiently the construction of a modern industrial system and the development of new quality productive forces, and actively serve the goals of “XV” development and the building of a strong financial country. Wu Qing also said that listed companies are the foundation of the capital market; they should focus on their main businesses, improve corporate governance, strive to enhance the quality of development, and strengthen the capacity to return on investment to investors, thereby providing solid support for high-quality development of the capital market.

At the symposium, participants put forward specific suggestions around how to do a good job in the “XV” plan for the capital market, improve the inclusiveness and adaptability of the system, and improve the quality and investment value of listed companies. The main points include: continuously optimizing issuance and listing system rules to better adapt to the development needs of emerging industries, future industries, and the transformation and upgrading needs of traditional industries; improving the efficiency of refinancing by listed companies to better activate the market vitality for mergers and acquisitions and restructurings; stepping up efforts to foster patient capital and encourage medium- and long-term funds to enter the market, to better match the long-cycle needs of industrial development; improving the mechanisms for dividends, share repurchases, and incentive constraints for listed companies, and urging listed companies to further enhance standardized operations and the level of information disclosure; increasing policy support for the global development of listed companies to help cultivate world-class enterprises, among others.

The “Decision of the CPC Central Committee on Formulating the 15th Five-Year Plan for National Economic and Social Development” proposes to enhance the inclusiveness and adaptability of the capital market institutions and improve the capital market functions of coordinating investment and financing. It also calls for actively developing direct financing such as equity and bonds, and steadily developing futures, derivatives, and asset securitization. In recent times, the CSRC has conducted extensive research on the “XV” plan for the capital market, and has successively convened symposia with listed companies and industry institutions on the “XV” capital market plan, as well as expert symposia on the “XV” capital market plan. The CSRC said it will continue to deepen comprehensive reforms of the capital market’s investment and financing, improve the inclusiveness and adaptability, competitiveness, and attractiveness of the system, and strive to achieve an effective qualitative improvement and a rational growth in quantity, thereby earnestly enhancing the market’s inherent stability. (Reporter Wu Lihua)

(Editor: Wen Jing)

Key words:

                                                            Capital market