The China Securities Regulatory Commission and the State Administration of Financial Supervision have made a heavy statement

China Business Daily (Reporter Wang Tongxu) The State Administration of Financial Supervision and the China Securities Regulatory Commission held meetings on December 13 and 14 respectively to convey the spirit of the Central Economic Work Conference of the Xi and study and deploy the implementation of the work.

The picture shows a profile picture at the entrance of the China Securities Regulatory Commission. (PHOTO COURTESY OF CNSPHOTO)

Make every effort to maintain the smooth operation of the capital market

The Central Economic Work Conference pointed out that the mainland's economy has rebounded this year, and high-quality development has been steadily promoted. However, at the same time, to further promote the economic recovery for the better, we need to overcome some difficulties and challenges, mainly due to insufficient effective demand, overcapacity in some industries, weak social expectations, and still many hidden risks.

The State Administration of Financial Supervision has made it clear that it will accelerate the development of consumer finance, actively support the expansion of profitable investment, help urban-rural integration and regional coordinated development, and strengthen the financial guarantee of major projects and key projects. We will support the consolidation of the basic market of foreign trade and foreign investment, strengthen the comprehensive financial services for foreign trade, and steadily expand the institutional opening up of the financial sector. Focusing on the "five major articles" - improving the quality and efficiency of science and technology finance, improving the green financial system, strengthening inclusive financial services, accelerating the development of pension finance, and promoting the development of digital finance, we will further promote high-quality economic development.

"We must adhere to comprehensive policies, treat both the symptoms and the root causes, and continue to work hard to enhance confidence and improve expectations. Give full play to the joint efforts of all parties to strengthen comprehensive research and judgment, monitoring and early warning of market risks, and strengthen hierarchical consultation and rapid response. Stimulate the endogenous momentum of listed companies and other business entities to stabilize the market, and optimize and improve the institutional mechanisms such as dividends, repurchases, and shareholder increases. We will further promote the construction of first-class investment banks and investment institutions, put the promotion of dynamic balance of investment and financing in a more prominent position, vigorously promote the reform of the investment side, promote and improve the policy environment conducive to the entry of medium and long-term funds into the market, and guide investment institutions to strengthen the counter-cyclical layout and expand 'patient capital'. The SFC said.

Prudently prevent and resolve financial risks in key areas

Resolve risks in key areas such as private equity funds, local trading venues, and bond defaults in a prudent and orderly manner, and work together to combat financial chaos and purify the market ecology...... Preventing and resolving financial risks is one of the important tasks in 2023.

To prevent and resolve financial risks, there is no time to complete, only when it is in progress. The Central Economic Work Conference proposed to continue to effectively prevent and resolve risks in key areas. It is necessary to coordinate and resolve risks such as real estate, local debts, and small and medium-sized financial institutions, severely crack down on illegal financial activities, and resolutely adhere to the bottom line of preventing systemic risks.

In this regard, the State Administration of Financial Supervision has made it clear that it is necessary to adhere to the goal-oriented and problem-oriented, resolutely fight a tough and protracted battle, and firmly guard the bottom line of no systemic risks. Grasp the timeliness and efficiency, orderly promote the reform of small and medium-sized financial institutions to reduce risks, and avoid "one size fits all". We will meet the reasonable financing needs of real estate enterprises under different ownership systems without discrimination, and vigorously support the construction of "three major projects" such as affordable housing. Cooperate with the resolution of the risk of existing local debts, and strictly control new debts. Crack down on illegal financial activities.

The China Securities Regulatory Commission has also made it clear that it will comprehensively strengthen institutional supervision, behavior supervision, functional supervision, penetrating supervision, and continuous supervision, and effectively implement the "fangs and thorns" of supervision. Intensify the crackdown on financial fraud, fraudulent issuance and other illegal activities, and continue to purify the market ecology. Crack down on "pseudo private placements", clean up and rectify the gold exchange and "fake gold exchange", and strive to eliminate the regulatory vacuum. Actively cooperate with relevant parties to prevent and resolve risks such as real estate and local debts. Strengthen the supervision of the whole chain of industry institutions, supervise and strengthen the construction of internal governance and culture, and keep the bottom line of compliance and risk control.

It is worth noting that recently, the relevant departments have made frequent statements on actively and steadily resolving real estate risks.

"We will continue to cooperate with the financial management department, do a good job in the implementation of various policies, meet the reasonable financing needs of real estate enterprises with different ownership systems without discrimination, support real estate enterprises with temporary tight capital chains to solve the problem of short-term cash flow constraints, promote their normal operation, and resolutely prevent the concentrated outbreak of debt default risks. Dong Jianguo, a member of the party group and vice minister of the Ministry of Housing and Urban-Rural Development, said at the "2023-2024 China Economic Annual Conference" held on December 13.

Escort the high-quality development of the capital market

2023 is a year for the capital market to move towards high-quality development. At the beginning of the new year, the capital market ushered in an opportunity for high-quality development. On February 1, the full implementation of the reform of the stock issuance registration system was officially launched, opening a new situation of comprehensively deepening the reform of the capital market and opening up a broader space for the high-quality development of capital market services. On May 18, the State Administration of Financial Supervision and Administration was inaugurated, opening a new chapter in financial supervision with Chinese characteristics.

The Shanghai and Shenzhen Stock Exchanges have successively issued announcements to speed up the improvement of the trading system and optimize the supervision of transactions; the Beijing Stock Exchange and the Shanghai and Shenzhen Stock Exchanges have further reduced the handling fees for securities transactions; and listed companies have collectively increased their holdings but not reduced their holdings, so as to strengthen investor confidence...... In 2023, the high-quality development of the capital market can be described as surging and fruitful.

Looking forward to the work in 2024, the China Securities Regulatory Commission said that it will focus on the key links and key areas of the "five major articles" and the key tasks of next year's economic work, and take the promotion of the stock issuance registration system as the traction, deepen the reform and opening up of the capital market, and improve the function of the capital market. Formulate and implement an action plan for the capital market to support high-level scientific and technological self-reliance and the construction of a modern industrial system. Implement the "two unswerving" and increase efforts to support the reform of state-owned enterprises and the development and growth of the private economy. Promote the improvement of the quality of listed companies, encourage listed companies to focus on their main business, become better and stronger, and consolidate and deepen the normalized delisting mechanism. Deepen the market pattern of dislocation development and moderate competition in the multi-level equity market, and accelerate the construction of a world-class exchange. Optimize the institutional environment for "fundraising, investment, management and withdrawal" of private equity venture capital funds. Steadily promote the expansion and quality of the exchange bond market.

"Improve the quality and efficiency of science and technology finance, and help accelerate the development of new quality productivity and the construction of a modern industrial system. Improve the green financial system and support the creation of a green and low-carbon development highland. Strengthen inclusive financial services, improve the level of financial services for private small and micro enterprises and new citizens, and promote the steady and moderate reduction of comprehensive social financing costs. Accelerate the development of pension finance, focus on making up for the shortcomings of the third pillar of pension, and increase support for the health industry and the silver economy. Promote the development of digital finance, facilitate the integrated development of the digital economy and the real economy, and strengthen data security management. "For escorting the high-quality development of the capital market, the State Administration of Financial Supervision has deployed it like this.