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

The Party Secretary and Chairman of the China Securities Regulatory Commission (CSRC), Wu Qing, recently stated at a 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 positive momentum of the market, and will accelerate the deepening of the GEM reform.

Wu Qing said that the CSRC will comprehensively, profoundly, and accurately understand and implement the important directives 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 “14th Five-Year” period, align 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 the focus should be on risk prevention, strengthened regulation, and promoting high-quality development. The goal is to solidify the positive momentum of the market, focus on deepening comprehensive reforms of investment and financing, improve the inclusiveness and adaptability of the system, accelerate the reform of the GEM, continuously promote the reform and implementation of the STAR Market, enhance the convenience, flexibility, and attractiveness of refinancing systems, promote high-quality integration of the Beijing Stock Exchange and the New Third Board, 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 core businesses, improve governance, strive to enhance development quality, increase their ability to generate returns for investors, and provide a solid foundation for the high-quality development of the capital market.

During the symposium, participants offered specific suggestions on how to develop the “14th Five-Year” Plan for the capital market, improve system inclusiveness and adaptability, and enhance the quality and investment value of listed companies. Key suggestions included: continuously optimizing issuance and listing system rules to better meet the needs of emerging industries, future industries, and traditional industry upgrades; improving the efficiency of refinancing for listed companies to better activate M&A and restructuring markets; fostering patient capital and promoting long-term funds entering the market to better match the long-cycle needs of industrial development; improving dividend, buyback, and incentive mechanisms for listed companies, and urging companies to further enhance operational compliance and information disclosure; increasing policy support for the globalization of listed companies to help cultivate world-class enterprises.

The “Suggestions of the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development” proposed to improve the inclusiveness and adaptability of the capital market system and to develop a 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. The CSRC stated that it will continue to deepen comprehensive reforms of investment and financing, enhance system inclusiveness, adaptability, competitiveness, and attractiveness, and strive for qualitative improvements and reasonable quantitative growth, thereby effectively strengthening market stability. (Reporter: Wu Lihua)