Wu Qing, chairman of the China Securities Regulatory Commission, said in a keynote speech at the annual meeting of the 2024 Financial Street Forum on October 18 that he would further lay a solid foundation for the coordinated development of investment and financing, further support the development and growth of new quality productivity, further deepen the reform of the capital market in an all-round way, and further shape a good market ecology.
Quick Facts
Accelerate the implementation of the guidance on medium and long-term capital entering the market
Focusing on supporting high-quality innovative enterprises, we will enhance the inclusiveness and adaptability of the system, and reform and optimize the issuance and listing system
Strengthen the supervision of the whole chain such as issuance and listing, information disclosure, share reduction, and delisting, strengthen the necessary constraints on the behavior of the "key minority" such as major shareholders, effectively safeguard the legitimate rights and interests of small and medium-sized investors, and make financing more standardized and investment more secure
Deepen the comprehensive reform of investment and financing in the capital market, and improve the institutional mechanisms to promote the high-quality development of listed companies and enhance the internal stability of the market
Strictly punish financial fraud, fraudulent issuance, market manipulation, illegal shareholding reduction, and other behaviors
The following is the full text of the speech:
Honorable Secretary Yin Li, Mayor Yin Yong, Director Xiuling, Chairman Xiaodong, Honorable Deputy Director Wang Jiang, President Gongsheng, Director Yunze, President Fu Hua, Director Hexin, distinguished guests, ladies and gentlemen,
Good morning! It is a great pleasure to participate in this Financial Street Forum. At present, the global economy, trade and geopolitics are complex, contradictions and conflicts are frequent, and risks and challenges are huge, and only by upholding mutual understanding and respect, strengthening macroeconomic policy coordination and mutual trust, strengthening industrial division of labor and cooperation, and deepening financial cooperation and opening up, can we overcome development problems and trust gaps and inject more certainty into the uncertain global economy. The theme of this forum is "trust and confidence", which is of great practical significance.
Since the beginning of this year, in the face of a complex and severe internal and external environment, under the strong leadership of the CPC Central Committee, China's economic operation has remained generally stable and progressive, and high-quality development has been steadily promoted. The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) made comprehensive arrangements for further deepening reform in an all-round way and promoting Chinese-style modernization, injecting strong impetus into the long-term improvement of the economy. Recently, all parties have resolutely implemented the spirit of the meeting of the Political Bureau of the Central Committee on September 26, and played a series of policy "combination punches", which have effectively boosted market confidence. We believe that with the acceleration of the implementation of key reform tasks, the successive introduction of a package of incremental policies, and the continuous development of stock policies, the foundation for China's sustained economic recovery will be more solid and stable.
The capital market plays a unique and key role in promoting the formation of innovative capital, helping industrial transformation and upgrading, improving social wealth management, and stabilizing social psychological expectations. The China Securities Regulatory Commission will resolutely implement the spirit of the Third Plenary Session of the 20th Central Committee and the Political Bureau of the CPC Central Committee, closely focus on the high-quality development of the capital market, strengthen the foundation, strictly supervise and strictly manage, prevent risks, effectively play the function of the capital market, and better serve the overall situation of economic and social development.
First, we need to further lay a solid foundation for the coordinated development of investment and financing. Investment and financing are two sides of the same coin, and they complement each other and promote each other. The first is to achieve an overall balance in quantity. On the one hand, it is necessary to speed up the implementation of the guidance on the entry of medium and long-term funds into the market, vigorously develop equity public funds, implement classified policies to break through the pain points of medium and long-term capital entering the market, and build a policy system that supports "long-term money and long-term investment". Just now, Governor Pan announced that the swap facility has begun to accept applications from financial institutions, and the China Securities Regulatory Commission has also approved 20 securities and fund companies to participate in the swap facility. We will also actively cooperate with the People's Bank of China to implement the policy tools for repurchasing and increasing shareholdings and relending, which will introduce incremental funds to the A-share market. On the other hand, we will promote the implementation of various measures for the capital market to do a good job in the "five major articles" of finance. We will further improve the mechanism for the coordinated development of the primary and secondary markets, so that the scale and pace of market financing will be more scientific and reasonable. The second is to achieve continuous qualitative improvement. Grasp the "bull's nose" of improving the quality of listed companies, guide and urge listed companies to improve corporate governance, further improve transparency, increase dividends and repurchases, implement market value management responsibilities, continuously improve investment value, and create long-term returns for investors. The third is to achieve effective checks and balances on rights and responsibilities. Recently, the market has paid more attention to the issue of shareholder reduction, from the objective data, whether in the past year, or since late September, listed companies have not "piled up to reduce holdings" and a large number of illegal reductions. In response to the problem of individual companies reducing their holdings in violation of regulations, the China Securities Regulatory Commission and the stock exchange have taken immediate measures and dealt with them seriously. Shareholding reduction is a shareholder's right, and normal shareholding reduction should be supported, but for illegal shareholding reduction and bypass reduction, it must be resolutely dealt with, ordered to repurchase and pay the price difference, and bear the corresponding responsibility. In the next step, in view of the shareholding, capital and information advantages of major shareholders and actual controllers of listed companies, we will strengthen the supervision of the whole chain of issuance and listing, information disclosure, share reduction and delisting, strengthen the necessary constraints on the behavior of the "key minority" such as major shareholders, effectively safeguard the legitimate rights and interests of small and medium-sized investors, and make financing more standardized and investment more secure.
Second, we should further support the development and growth of new productive forces. We will focus on supporting high-quality innovative enterprises, enhance the inclusiveness and adaptability of the system, reform and optimize the issuance and listing system, grasp the implementation of the newly released "Six Mergers and Acquisitions", and launch a number of typical cases as soon as possible. Improve the equity incentive system, effectively stimulate the entrepreneurial spirit and talent innovation and creativity vitality, and lead and drive all kinds of advanced production factors to develop new quality productive forces. Focus on cultivating and strengthening patient capital, comprehensively make good use of various tools such as stocks, debts, and futures, improve the support policies for venture capital and private equity investment, and guide better investment in early, small, long-term, and hard technology. Enhance professional service capabilities, urge industry institutions to improve their capabilities, and better play the role of value discovery, risk pricing, transaction matching, and value-added services in promoting innovation in science and technology, industry, and business models, so as to help high-quality innovative enterprises develop and grow.
Third, we need to further deepen the reform of the capital market in an all-round way. In accordance with the deployment of the Third Plenum, we are studying and formulating an implementation plan for further deepening the reform of the capital market in an all-round way. We will adhere to the direction of marketization and rule of law, deepen the comprehensive reform of investment and financing in the capital market, improve the institutional mechanism for promoting the high-quality development of listed companies and enhancing the internal stability of the market, and take typical cases as the starting point to promote the improvement of the system in view of key and difficult issues that restrict the play of market functions such as pricing in the primary and secondary markets and investor protection. Strengthen reform coordination, grasp the timeliness and effectiveness, and ensure that various reform measures are operational, feasible, predictable, and effective.
Fourth, we need to further shape a good market ecology. Implement the requirements of "long teeth and thorns" and angular supervision, severely punish financial fraud, fraudulent issuance, market manipulation, illegal reduction of holdings and other behaviors, and earnestly maintain the "three publics" of the market. The key is to make all parties in the market fulfill their responsibilities and get their own place through effective supervision in accordance with the law, so as to promote a strong foundation. While strengthening supervision, it is necessary to encourage the practice of the financial culture with Chinese characteristics of "five wants and five noes", urge listed companies and industry institutions to adhere to the rule of law, integrity, and the spirit of contract, fulfill fiduciary obligations and fiduciary responsibilities, cultivate an equity culture of respecting investors and rewarding investors, and create a good "soft environment" for the stable and healthy development of the capital market.
Ladies and gentlemen,
Opening-up is a clear sign of China's modernization, and foreign capital is an important participant and builder of China's capital market. The China Securities Regulatory Commission (CSRC) will unswervingly continue to promote the all-round institutional opening up of markets, institutions and products, deepen the interconnection of domestic and foreign markets, broaden the channels for overseas listing, and encourage and support more foreign-funded institutions to invest and develop businesses in China. We will further enhance the stability, transparency and predictability of policies, and strive to make all kinds of funds "willing to come, retained, and developed well".
Finally, I sincerely wish this forum a complete success!