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

The head of the Party Committee and Chairman of the CSRC, Wu Qing, recently said at a symposium on publicly listed companies held to discuss the CSRC’s “15th Five-Year Plan” for the capital market that the CSRC will plan and implement the “15th Five-Year Plan” for the capital market with high quality, do everything possible to solidify the momentum of the capital market trending in a steady and positive direction, and move quickly to roll out reforms to the ChiNext Board.

Wu Qing said that the CSRC will fully, deeply, and accurately understand and grasp the key arrangements 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 “15th Five-Year Plan” period, unify strategic needs with what is feasible in practice, and unify what the market needs with what regulators aim to achieve, so as to plan and implement the “15th Five-Year Plan” for the capital market with high quality.

He emphasized that it is necessary to stay tightly focused on the main line of work of preventing risks, strengthening regulation, and promoting high-quality development, and to do everything possible to consolidate the momentum of the capital market trending in a steady and positive direction. The focus will be on continuously deepening the comprehensive reform of capital market investment and financing, improving the inclusiveness and adaptability of the system, moving quickly to roll out reforms to the ChiNext Board, and continuing to push the implementation of the STAR Market reforms to take root. We will improve the convenience, flexibility, and attractiveness of the refinancing system, promote high-quality integrated development of the Beijing Stock Exchange and the National Equities Exchange and Quotations (NEEQ), and enhance the coverage and the reach of a multi-tier capital market, thereby supporting the construction of a modern industrial system and the development of new quality productive forces in a more forceful and effective manner. Wu Qing also said that listed companies are the foundation of the capital market. They should focus on their core business, improve corporate governance, strive to enhance the quality of development, and strengthen their ability to return value to investors, providing solid support for high-quality development of the capital market.

At the symposium, participants put forward specific suggestions on how to do a good job with the capital market’s “15th Five-Year Plan,” improve the system’s inclusiveness and adaptability, and improve the quality and investment value of listed companies. The main points include: continuously optimizing the rules for issuance and listings to better fit the needs of emerging industries, future industries, and the transformation and upgrading of traditional industries; improving the efficiency of refinancing by listed companies to better invigorate the market for mergers and acquisitions and reorganization; fostering “patient capital” with greater intensity and promoting medium- and long-term funds to enter the market, so as to better match the long-cycle needs of industrial development; improving the dividend distribution, share repurchase, and incentive-constraining mechanisms of listed companies, requiring listed companies to further improve standardized operations and the level of information disclosure; increasing policy support for the global development of listed companies to help foster world-class enterprises, among others.

The “Suggestions 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’s system, and improve the capital market functions in which investment and financing coordinate with each other. It calls for actively developing direct financing such as equity and bonds, and steadily developing futures, derivatives, and asset securitization. In recent period, the CSRC has carried out extensive research on the “15th Five-Year Plan” for the capital market. It has successively convened symposiums on listed companies and industry institutions for the “15th Five-Year Plan” of the capital market, as well as symposiums with experts on the “15th Five-Year Plan” for the capital market. The CSRC said it will continue to deepen the comprehensive reform of capital market investment and financing, improve the inclusiveness, adaptability, and competitiveness and attractiveness of the system, work hard to achieve an effective qualitative improvement and a reasonable quantitative growth, and earnestly enhance the market’s internal stability. (Reporter Wu Lihua)

(Editor: Wen Jing)

Key words:

                                                            capital market