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

The Party leadership secretary and chairman of the China Securities Regulatory Commission, Wu Qing, recently said at a symposium on the capital markets’ 15th Five-Year Plan for listed companies that the CSRC will draft and implement the 15th Five-Year Plan for the capital markets with high quality, do everything possible to consolidate the momentum of the capital markets staying generally stable and improving, and promptly introduce reforms to deepen the ChiNext reform.

Wu Qing said that the CSRC will comprehensively, profoundly, and accurately understand and grasp the important 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 markets 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 intend. It will draft and implement the 15th Five-Year Plan for the capital markets with high quality.

He emphasized that the CSRC should closely follow the main line of work of preventing risks, strengthening regulation, and promoting high-quality development, do everything possible to consolidate the momentum of the capital markets staying generally stable and improving, focus on continuously deepening the comprehensive reform of capital market investment and financing, and improving the inclusiveness and adaptability of the system. It should promptly introduce reforms to deepen the ChiNext reform, and continue to push through the implementation of the Sci-Tech Innovation Board reforms. It 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, and enhance the breadth and radiation of multi-level market coverage. This will more powerfully and effectively support the development of a modern industrial system and the growth of new productive forces, actively serve the development goals of the “15th Five-Year Plan” and the building of a strong financial country. Wu Qing also said that listed companies are the foundation of the capital markets; they should focus on their core businesses and improve governance, strive to enhance the quality of development, and strengthen their ability to deliver returns to investors, providing solid support for high-quality development of the capital markets.

At the symposium, participants offered specific suggestions on how to do a good job in the capital markets’ 15th Five-Year Plan, improve the inclusiveness and adaptability of the system, and enhance the quality and investment value of listed companies. The main points include: continuing to optimize the rules for issuing and listing, better matching the 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 vitality of the mergers and acquisitions market; fostering patient capital and promoting medium- to long-term funds to enter the market with greater efforts, better matching the long-cycle needs of industrial development; improving the dividend distribution, share buyback, and incentive-and-constraint mechanisms for listed companies, urging them to further enhance standardized operations and the level of information disclosure; and increasing policy support for the global development of listed companies, to help cultivate world-class enterprises, among others.

《The CPC Central Committee’s Proposal on Formulating the 15th Five-Year Plan for National Economic and Social Development》 states that it should improve the inclusiveness and adaptability of the capital market system, and enhance the capital market function of coordinating investment and financing. It should actively develop direct financing such as equity and bonds, and steadily develop futures, derivatives, and asset securitization. In the recent period, the CSRC has conducted extensive research on the capital markets’ “15th Five-Year Plan.” It has successively convened symposiums on listed companies under the “15th Five-Year Plan” for the capital markets and on industry institutions, as well as expert symposiums on the “15th Five-Year Plan” for the capital markets. The CSRC said that it should continue to deepen the comprehensive reform of capital market investment and financing, improve the inclusiveness and adaptability, competitiveness, and attractiveness of the system, and strive to achieve a qualitative effective improvement and a rational increase in quantity, thereby effectively enhancing the market’s inherent stability. (Reporter: Wu Lihua)

(Editor: Wen Jing)

Keywords:

                                                            Capital market