Wu Qing's good start, the five consecutive yang of A shares

As soon as the Spring Festival holiday ended, from February 18 to 19, the China Securities Regulatory Commission held a series of symposiums, which were presided over by Wu Qing, secretary of the party committee and chairman of the China Securities Regulatory Commission, and members of the leading group.

On February 7, there are only 3 days to go before the first day of the Dragon New Year.

Wu Qing left his post as deputy secretary of the Shanghai Municipal Party Committee and went to the China Securities Regulatory Commission (CSRC) in Fukai Building, Beijing's financial street, where he became the 10th chairman of the CSRC.

By February 20, Wu Qing had been in office for 14 days, although there were 8 days of Spring Festival holiday here, but from the perspective of capital market supervision actions, the new head of the China Securities Regulatory Commission can be described as non-stop.

Since 8 February, the regulator has issued fines to a number of securities firms; at the beginning of the Spring Festival, the China Securities Regulatory Commission held a series of more than 10 forums within two days, inviting experts, scholars and representatives of all parties in the market to offer suggestions and suggestions; on the afternoon of 19 February, Wu Qing also led a team to the business department of a securities firm to discuss and exchange views with more than 10 representatives of individual investors.

"The new chairman has experience in capital market management, a solid style, easy-going and hardworking, and the market is still looking forward to it. On February 21, as an expert invited to participate in the CSRC symposium, Tian Xuan, deputy dean of the PBC School of Finance of Tsinghua University, commented on Wu Qing, the new chairman of the China Securities Regulatory Commission.

Tian Xuan said that as an invited expert, he fully felt the attitude of the new chairman of the China Securities Regulatory Commission to ask questions about the market, ask experts, make scientific decisions, and work style of seeking truth and pragmatism at the symposium.

"I felt the new year and new atmosphere after the new leadership of the China Securities Regulatory Commission took office. A senior executive of a public offering institution in Beijing said: "At the meeting, Wu Qing listened carefully to the speeches of the representatives of various institutions, and the institutions also made suggestions and suggestions from various aspects such as industry development, investment and research construction, and risk control improvement. ”

"New Direction"

In the face of the current capital market, what is the focus of the next regulatory reform?

Wu Qing, the new chairman of the China Securities Regulatory Commission, arrived before the Spring Festival, and on February 8, the second day after taking office, the official website of the China Securities Regulatory Commission updated two administrative supervision and punishment regulations in the evening, respectively, to Shenwan Hongyuan Securities and Ping An Securities to order corrections and issue warning letters.

On Chinese New Year's Eve, February 9, the official website of the China Securities Regulatory Commission issued an announcement that recently, the organization of inspection and law enforcement and daily supervision forces concentrated on investigating and prosecuting violations of laws and regulations such as stock trading by many practitioners of China Merchants Securities. Rely on criminal accountability, administrative punishments, administrative supervision measures, and internal accountability to carry out three-dimensional punishments. According to the content of the report, 63 employees of China Merchants Securities were administratively punished, with a total fine of 81.73 million yuan.

On the same day, February 9, Zhongshan Securities was ordered to take corrective measures by the Shenzhen Securities Regulatory Bureau due to problems in its private asset management business.

On February 18, at the beginning of the Year of the Dragon, the first fine of the China Securities Regulatory Commission landed - Huaan Securities was ordered to correct administrative supervision measures by the Anhui Securities Regulatory Bureau due to problems such as imprudent production of research reports involving "Zuojiang Technology".

In addition to issuing frequent fines to non-compliant securities firms, the regulator has also widely accepted suggestions from all walks of life in the market, and the work of the CSRC has shown a new trend.

At the beginning of the new year, the China Securities Regulatory Commission held a series of more than 10 symposiums, with the participation of experts and scholars, small and medium-sized investors, listed companies, enterprises to be listed, securities and fund operating institutions, accounting law firms, private equity institutions, foreign-funded institutions and other representatives.

In Tian Xuan's view, just after the Spring Festival holiday, the China Securities Regulatory Commission held a series of symposiums to listen to the opinions and suggestions of all parties around the concerns of the market, fully demonstrating the sincere attitude of the new party committee and the new chairman of the China Securities Regulatory Commission to fully listen, respect the opinions of all parties in the market, and respond to market concerns, and release the policy warmth of building the market during the critical period and continuing to make efforts to stabilize the market and stabilize confidence.

On the afternoon of February 19, Wu Qing also led a team to the business department of the brokerage company to discuss and exchange ideas with more than 10 representatives of individual investors.

The reporter confirmed to the relevant people of the financial street business department of Galaxy Securities that the location of this discussion is the business department.

Galaxy Securities Financial Street Business Department is a veteran business department, its predecessor is Galaxy Securities Yuetan Business Department, founded on May 5, 1994, is one of the earliest securities business departments in China, when the Beijing Industrial and Commercial Bank Trust Securities Business Department, in August 2000, merged into Galaxy Securities, is now the central business department of Galaxy Securities in Beijing.

In addition, on February 18, the official WeChat public account of the China Securities Regulatory Commission released comments, which allowed shareholders to speak freely.

The official account shows many netizens' comments, among which "New Year, New Atmosphere" appears the most, revealing that investors are looking forward to regulatory trends and the performance of A-shares in the Year of the Dragon.

On the evening of February 19, the official Weibo of the China Securities Regulatory Commission "@证监会发布" also released the article "The Securities Regulatory Commission Held a Series of Symposiums to Listen to Opinions and Suggestions", and some selected comments were displayed at the bottom of the article. To this end, netizens have given positive comments, "New year, new leadership, new atmosphere, looking forward to A-shares", "Holding multiple symposiums in a row, opening up the way of speech, and facing criticism frankly, this year's market is getting higher and higher!"

February 20, #证监会官方微博对外展示评论#话题冲上微博热搜榜.

According to the above-mentioned "CSRC release" news, the responsible comrades of the CSRC listened carefully to the speeches of the delegates, and said that the CSRC will take seriously the opinions and suggestions from all sides, including criticism, and do it immediately after argumentation and practicability, and do a good job of communication and explanation if the conditions are not available for a while, respond to market concerns in a timely manner, and rely on the joint efforts of all parties to build and develop the capital market.

According to the reporter's understanding, at present, the China Securities Regulatory Commission plans to study and improve the supervision model of industry institutions, from personnel, business to cooperation in various industries and other multi-dimensional institutional systems, and intends to strengthen industry compliance and risk control, consolidate investment and research capacity building, and at the same time pay close attention to star fund managers and other phenomena. In addition, the participants also proposed that reflecting on investors' dissatisfaction with the rate of return of public funds will improve the business level from investment and research capabilities, product design, risk control and other aspects. At the same time, the fund fee level will be further reduced, so that holders can get a better investment experience and give full play to the role of inclusive finance.

The reporter learned that the China Securities Regulatory Commission is also further improving the regulatory incentive and restraint mechanism, highlighting the reward and punishment of the bad, and truly promoting the comprehensive ability of financial entities such as public funds and securities companies. At the same time, we will strengthen coordination with relevant departments to promote the introduction of more medium and long-term funds into the market.

Wu Qingxin mission

On February 7, Wu Qing succeeded Yi Huiman as the new chairman of the China Securities Regulatory Commission.

At this time, the A-share market has just "risen" from a continuous decline.

Since 2022, the Shanghai Composite Index has begun to fluctuate to the downside. Especially in 2024, the Shanghai Composite Index has continued to fall from nearly 3,000 points, and has been diving one after another since the end of January, falling below 2,700 points in early February. With the support of continued favorable policies and long-term capital entering the market, the market bottomed out on February 6, and by the close of trading on February 7, the Shanghai Composite Index had a correction and closed at 2829.70 points. Since then, the Shanghai Composite Index has been in the red for four consecutive trading days, closing at 2,950.96 points on February 21, one step away from the 3,000-point mark.

The market is looking forward to the new chairman who took office in the dark moment of A-shares.

According to public information, Wu Qing was born in April 1965, a native of Mengcheng, Anhui Province, and has worked in the China Securities Regulatory Commission for many years, serving as the director of the Institutional Supervision Department of the China Securities Regulatory Commission, the director of the Risk Management Office of a securities company, and the director of the Fund Supervision Department.

In 2010, Wu Qing was transferred to Shanghai and served as deputy secretary of the Hongkou District Party Committee and acting district head, and in January of the following year, he "went to the deputy to become a regular".

At that time, China's capital market experienced a series of rapid development and clean-up and rectification, including the risk disposal of problematic securities firms after Wu Qing became the director of the risk disposal office of the securities company of the China Securities Regulatory Commission in 2005, and the fund rat warehouse regulatory storm set off by Wu Qing in 2009 after he became the director of the fund department of the China Securities Regulatory Commission.

Before and after that, the A-share market continued to deepen the reform. On October 30, 2009, another major move in China's construction of a multi-level capital market, namely the Growth Enterprise Market (GEM), was born.

On January 8, 2010, the State Council agreed in principle to carry out a pilot project for margin financing and securities lending business of securities companies, which was of epoch-making significance to the development of China's securities market, and China's stock market bid farewell to the unilateral market.

On March 26, 2010, the China Securities Regulatory Commission (CSRC) officially approved the listing of CSI 300 stock index futures contracts on the China Financial Futures Exchange, and the stock index futures were officially launched on April 16.

Since then, the reform of the registration-based system of the A-share market has deepened, the pace of opening up to the outside world has accelerated, the Beijing Stock Exchange has been inaugurated, and the A-share market has ushered in the era of a comprehensive registration-based system......

At the end of 2010, there were more than 2,000 A-share listed companies with a total market value of 26.3 trillion yuan, and by the end of 2023, there were more than 5,000 A-share listed companies with a total market value of 77.8 trillion yuan.

At this time, the A-share market has opened a new chapter in terms of volume, system and national strategy.

However, at the same time, the A-share market is short and bearish, investors have low access to investment, and the financing function far exceeds the investment function, which is also in front of regulators.

Now, Wu Qing has returned to the CSRC again, what kind of mission is he shouldering?

Protecting the "Money Bag"

Wu Qing used a series of actions to go to the front line and brainstorm to start the work of the chairman of the China Securities Regulatory Commission.

At a series of symposiums held by the China Securities Regulatory Commission, the regulators listened to the opinions and suggestions of all parties on strengthening the supervision of the capital market, preventing and resolving risks, and promoting the high-quality development of the capital market.

It is understood that the experts and scholars invited to participate in the CSRC symposium include: Li Yang, member of the Academic Division of the Chinese Academy of Social Sciences and chairman of the National Finance and Development Laboratory, Wu Xiaoqiu, president of the National Institute of Financial Research and president of the China Capital Market Research Institute, He Qiang, professor of the School of Finance of the Central University of Finance and Economics, Tian Xuan, deputy dean of the PBC School of Finance of Tsinghua University, Guo Li, professor of the Law School of Peking University, Peng Wensheng, chief economist of CICC, and Hua Sheng, professor of Southeast University.

The participants pointed out that the healthy development of the capital market is directly related to the "money bags" of hundreds of millions of investors and the overall situation of economic and social development. It is recommended to strictly control IPO access, strengthen the supervision of the whole process of listed companies, resolutely clear out unqualified listed companies, fundamentally improve the quality of listed companies, and increase investment returns. Adhere to the investor-oriented concept, standardize all kinds of trading behaviors, and improve the fairness of the system.

Tian Xuan believes that the healthy development of the capital market is directly related to investors' "money bags" and also has a bearing on the overall situation of economic and social development. Focusing on the core task of capital market reform, which is to effectively enhance investor confidence, increasing investment returns is the primary task. In this regard, we should start with the "fundamental policy" of improving the quality of listed companies, so that investors are willing to invest and are willing to stay and continue to invest.

Wu Xiaoqiu, dean of the National Institute of Financial Research of Chinese University, told the Economic Observation Network reporter that the current capital market needs strong measures to stabilize confidence and expectations in the short term, and at the same time, it is also necessary to continue to vigorously promote long-term system reform and construction.

"I also stressed at the meeting that we can't slack off, and we can't think it's okay just because the market has risen for a few days. The market is only taking a breath for a while, and it still has to go all out to reverse the decline of the market. This requires a range of policy designs to respond. Wu Xiaoqiu said.

He made three suggestions:

First, China's financial system has undergone significant changes, and the capital market plays a particularly important role in it. When there is a serious market decline or even crisis, the country's integrated financial sector, such as the central bank, needs to be aware and interven. From the experience of domestic and foreign countries, when the market falls sharply, it is difficult to stop it by the capital market regulators alone, and central banks will generally intervene, and maintaining financial stability itself is an important responsibility of the central bank.

"When there is no capital market, financial stability mainly involves the institutions of commercial banks, and when a country's capital market develops, the central bank must also pay attention to the stability of the capital market. So, for the last stabilizing force of the market, I personally think it is in the central bank. The regulator is having some tools, but no funds, and the funds are in the central bank. Therefore, I suggest that the integrated financial sector should continue to pay attention and take timely measures to stabilize the market. He believes that the current market is still hesitating, wait-and-see, at this time to stabilize the market, stabilize confidence is a tough battle, must take measures to stop the momentum of the market sharp decline, this is the most important task at present.

Second, the regulators also have some tools that need to be reformed, such as the complete abolition of refinancing and the complete reform of the refinancing system.

Thirdly, the IPO must be suspended at a critical moment in the market, sending a clear signal to the market that it will resolutely maintain market stability.

"There are also people who disagree with the suspension of IPOs, arguing that there should be no administrative intervention under the registration system. When the market is bleeding, it needs to stop the bleeding, and the suspension of the IPO is a measure to stop the bleeding. Wu Xiaoqiu emphasized that the IPO funds are not ICU funds, do not ICU IPO funds, and the people's money is not life-saving money, but development money.

At the same time, short-term policies to stabilize the market and long-term system building should complement each other. He said that although the current important thing is to stabilize the market, it is also necessary to pay attention to the reasons for such a big problem in the market. It is a very important task to shift from the financing market to the investment market in the past.

For the reform of the capital market, Tian Xuan said that on the basis of strictly controlling IPO access, attracting real high-growth and high-tech enterprises to go public, and enhancing the investability of investment targets, we should strengthen the supervision of the whole process of listed companies, resolutely retreat as much as possible, and promote the survival of the fittest in the market. In the long run, it is more important to further improve the supervision and incentive mechanism for the governance of listed companies in mainland China from both internal and external sources, and improve the level of governance of listed companies, such as further optimizing the mechanism for the selection and appointment of independent directors and reducing unnecessary interventions to activate the external supervision function of the corporate control market.

Wu Xiaoqiu made suggestions from four aspects:

The first is the reform of ideas. Today's capital market is not a dispensable thing in China's financial system, it plays an important pivotal role in encouraging economic development and financial structural reform, and it is necessary to attach importance to the strategic value of the capital market in understanding.

The second is the transformation of functions. Most of the funds in the capital market are personal funds, as well as some institutional funds. But whether it is an individual or an institution, investment is a business activity and needs to be rewarded. If there is no return, the market becomes a speculative market.

The third is the reform of the system. Among them, the most important issue is to improve the rules for reducing shareholdings and optimize the implementation of the registration system.

He suggested that the rules for reducing holdings should be further reformed, and on the basis of the new regulations of the China Securities Regulatory Commission on "8.27" shareholding reduction, the constraints on profit creation should be further increased, so that major shareholders, actual controllers, and controlling shareholders can only reduce their holdings on the premise of meeting certain requirements for creating profits.

As for the registration system, he believes that the direction of the reform of the registration system is right, but the normal operation of the registration system requires three conditions - one is to punish the law strictly, the second is the due diligence of intermediaries, and the third is the issuer to disclose truthful information. However, there are still big shortcomings in these three aspects, and some problems have also been exposed in practice. Therefore, it is necessary to strengthen the restraint on intermediaries, impose severe penalties on fraudulent listings, and deal a devastating blow. "I highly agree that the declaration is responsible, and it must be strictly supervised in this way. Wu Xiaoqiu said.

Finally, there is the change of policy instruments and institutions. "In the past, it was always thought that the rise was dangerous and the fall was safe, so in the past, the power of shorting in the instrument design was very strong, and it was very difficult to push the market up. Wu Xiaoqiu said that the refinancing mechanism needs to be thoroughly reformed.

On February 21, Watson said in an interview with the Economic Observer that there are four main suggestions for targeted measures for capital market reform: First, the entrance to the securities market. This is to guard the door of the registration system with a high threshold. Second, the export of the securities market is also known as delisting. The intensity of delisting must be strengthened. Third, refinancing and reduction of holdings in the secondary market. For the company's major shareholders, actual controllers, company executives who hold original shares and their affiliates, it is necessary to have strict economic constraints, so that they can mainly share dividends with the sustainable and healthy development of the listed company. Fourth, the quality construction and whole-process supervision of the listed company itself.

In the view of a senior executive of a securities firm in Shanghai, the recent symposium held by the China Securities Regulatory Commission to listen to the opinions and suggestions of market participants from all parties shows that the regulator respects the market and investors, and believes that an atmosphere of mutual promotion and mutual cooperation will be formed to a greater extent in the future, so as to promote the high-quality and healthy development of the capital market.

Yang Delong, chief economist of Qianhai Open Source Fund, said that at the beginning of the new year, the regulatory authorities held a series of forums to fully listen to the voices of all parties in the market, adhere to the problem orientation, and carry out targeted reform and deployment for issues with high market voices and strong reactions, which also reflects the determination of the China Securities Regulatory Commission to maintain market stability and has played a great role in boosting the subsequent trend of the capital market. At present, there are 200 million shareholders and 600 million people in the mainland's capital market, and the healthy development of the capital market has a bearing on the pockets of hundreds of millions of investors and on the overall situation of economic and social development. Promoting reform measures and maintaining market stability are the top priorities at present.