CSRC: Fully consolidate the steady and improving 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 improving momentum of the capital market, and accelerate the launch of deepening reforms of 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 Central Committee of the Party, 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, unify market demands with regulatory goals, and develop and implement the “14th Five-Year Plan” for the capital market with high quality.

He emphasized that, focusing closely on risk prevention, strengthened regulation, and promoting high-quality development, efforts should be made to consolidate the steady and improving trend of the capital market, focus on continuously deepening the comprehensive reform of capital market investment and financing, improve the inclusiveness and adaptability of the system, accelerate reforms of the GEM, continuously promote the implementation of the STAR Market reform, enhance the convenience, flexibility, and attractiveness of refinancing systems, promote high-quality development of the Beijing Stock Exchange and the New Third Board integration, 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. 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, increase their ability to return value to investors, and provide a solid foundation for the high-quality development of the capital market.

During the symposium, participants put forward specific opinions and suggestions on how to develop the “14th Five-Year Plan” for the capital market, improve the system’s inclusiveness and adaptability, and enhance the quality and investment value of listed companies. These mainly 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 of traditional industries; improving the efficiency of listed companies’ refinancing to better activate the M&A and restructuring market; making greater efforts to cultivate patient capital and promote the entry of medium- and long-term funds, better matching the long-cycle needs of industrial development; improving mechanisms for dividends, buybacks, and incentive constraints of listed companies, and urging listed companies to further enhance their compliance operations and information disclosure levels; increasing policy support for the globalization of listed companies to help cultivate world-class enterprises.

The “Proposal of the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development” proposes to improve the inclusiveness and adaptability of the capital market system and to develop a well-coordinated investment and financing function. It advocates actively developing direct financing channels such as equity and bonds, and steadily developing futures, derivatives, and asset securitization. Recently, the CSRC has conducted extensive research on the “14th Five-Year Plan” for the capital market, holding a series of symposiums with listed companies, industry organizations, and experts on the plan. The CSRC stated that it will continue to deepen comprehensive reform of investment and financing in the capital market, improve system inclusiveness, adaptability, competitiveness, and attractiveness, strive for effective qualitative improvement and reasonable quantitative growth, and genuinely enhance the market’s internal stability. (Reporter: Wu Lihua)

(Edited by: Wen Jing)

Keywords: Capital Market