CFIC Introduction
Wu Qing, chairman of the China Securities Regulatory Commission, said that the China Securities Regulatory Commission will closely focus on the high-quality development of the capital market, strengthen the foundation, strictly supervise and manage, prevent risks, effectively play the function of the capital market, and better serve the overall situation of economic and social development.
Wu Qing, chairman of the China Securities Regulatory Commission, said at the annual meeting of the 2024 Financial Street Forum on October 18 that the China Securities Regulatory Commission will closely focus on the high-quality development of the capital market, strengthen the foundation, strictly supervise and manage, prevent risks, effectively play the function of the capital market, and better serve the overall situation of economic and social development. For the next stage of key work, Wu Qing said that he will further lay a solid foundation for the coordinated development of investment and financing, further support the development and growth of new productive forces, further deepen the reform of the capital market in an all-round way, and further shape a good market ecology. To get through the pain points of medium and long-term capital entry into the market, Wu Qing said that the first is to achieve an overall balance in terms of volume. 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 entry into the market, and build a policy system to support "long-term money and long-term investment"; On the other hand, we will further improve the mechanism for the coordinated development of the primary and secondary markets, so that the scale and rhythm of market financing will be more scientific and reasonable. The second is to achieve continuous qualitative improvement. It is necessary to 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 it is in the past year, or since late September, listed companies have not seen a 'pile of reductions' 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. Wu Qing said that the reduction of holdings is the right of shareholders, and the normal reduction of holdings should be supported, but the illegal reduction of holdings and detour reductions must be resolutely dealt with, ordered to buy back, 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, the China Securities Regulatory Commission will strengthen the supervision of the whole chain of issuance and listing, information disclosure, share reduction, delisting, etc., 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. In terms of supporting the development and growth of new quality productivity, Wu Qing said that he will focus on supporting high-quality innovative enterprises, enhance the inclusiveness and adaptability of the system, reform and optimize the issuance and listing system, and do a good job in 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. Strengthen reform coordination and grasp the timeliness Regarding the comprehensive deepening of the capital market reform, Wu Qing introduced that the China Securities Regulatory Commission is 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. Wu Qing said that it is necessary 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. "Openness is a clear sign of Chinese 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. Wu Qing said that the China Securities Regulatory Commission will further enhance the stability, transparency and predictability of policies, and strive to make all kinds of funds "willing to come, retain, and develop well."
Source of this article: China Securities Journal
Reporter: Zan Xiuli
WeChat editor: Liu Sile
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