Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), published a signed article in the 'Guidance Reader on the Proposal of the Central Committee of the Communist Party of China for Formulating the Fifteenth Five-Year Plan for National Economic and Social Development,' emphasizing the need to enhance the inclusiveness and adaptability of the capital market system.
According to a report by Cailian Press on October 31, in the recently published "Guidance Reader for the 'Suggestions of the Central Committee of the Communist Party of China on Formulating the Fifteenth Five-Year Plan for National Economic and Social Development'", Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), published a signed article titled 'Enhancing the Institutional Inclusiveness and Adaptability of the Capital Market'.
Wu Qing: Strengthen the Implementation of More Inclusive IPO, M&A, and Restructuring Systems
Wu Qing pointed out that it is essential to adhere to goal-oriented and problem-oriented approaches, focusing closely on improving the balanced functions of investment and financing in the capital market. Further comprehensive deepening of capital market reforms should be carried out to continuously enhance the inclusiveness, adaptability, attractiveness, and competitiveness of the capital market system.
First, provide stronger support for technological innovation. Adapt to the characteristics of technology companies, such as high R&D investment, significant operational uncertainty, and long profit cycles, by intensifying the implementation of more inclusive systems for issuance, listing, mergers, and acquisitions, while solidly advancing the 'five key articles' of financial services.
Second, better meet investors' diversified wealth management needs. Uphold the principle of investor-centricity, focus on building a multi-level, three-dimensional market system and product-service matrix, continuously broaden channels for medium- and long-term capital inflows, and steadily enhance investors' sense of gain.
Third, strengthen regulation and risk prevention with greater precision and efficiency. Timely follow global and domestic trends in capital market innovation and development, improve the scientific rigor and effectiveness of regulation, empower regulatory efforts through technology, enhance capabilities in risk monitoring, early warning, and response, and sustain stability and vitality in the capital market.
Wu Qing: Improve the foundational institutional framework of the capital market, enhancing the stability, continuity, and predictability of policies.
Wu Qing emphasized that improving the inclusiveness and adaptability of the capital market system requires leveraging the critical role of reform and opening-up. It is necessary to adhere to market-oriented, rule-of-law-based, and international reform directions, focusing on eliminating institutional and systemic barriers that hinder the enhancement of the capital market's inclusiveness and adaptability, further stimulating market vitality and strengthening market functions. Combining effective markets with proactive government intervention, we must improve the foundational institutional framework of the capital market and enhance the stability, continuity, and predictability of policies. Promote reform and development through openness, steadily expanding high-level institutional openness in the capital market.
Wu Qing: Advance institutional reforms centered around market needs and public demands.
Wu Qing pointed out that to enhance the inclusiveness and adaptability of the capital market system, it is essential to consistently uphold the political and people-oriented nature of capital market work. Reforms should be advanced in response to market needs and public appeals, with stronger and more effective protection of investors' rights, particularly those of small and medium-sized investors; furthermore, it is crucial to better coordinate the balanced development of investment and financing. Attention should be paid to maintaining overall quantitative balance while focusing on sustained qualitative improvement, facilitating the faster conversion of household savings into social investments, steadily optimizing the financing structure, and promoting the coordinated development of primary and secondary markets.
Wu Qing: Improve institutional mechanisms for identifying and screening technology innovation enterprises and price formation
Wu Qing pointed out that by deepening reforms in the STAR Market and ChiNext as key initiatives, efforts should actively focus on developing diversified equity financing and enhancing the full-chain, full-lifecycle service capabilities for real economy enterprises. Further improvements should be made to institutional mechanisms for identifying and screening science and technology innovation enterprises, price formation, and other processes to provide more precise and effective support for high-quality enterprises in their initial public offerings (IPOs). The high-standard professional service capabilities of intermediaries should be continuously enhanced. Private equity and venture capital funds should be actively developed. A multi-level bond market system should be improved, with significant growth in sci-tech bonds, green bonds, and steady progress in real estate investment trusts (REITs) and asset securitization. The layout of futures products and industrial service functions should also be refined.
Wu Qing: Deepen mergers and acquisitions market reforms continuously and enhance the flexibility and convenience of refinancing mechanisms
Wu Qing emphasized that listed companies form the foundation of the capital market. Greater efforts should be made to optimize the structure of listed companies and increase investment value. Continuous deepening of mergers and acquisitions market reforms should be pursued, along with enhancing the flexibility and convenience of refinancing mechanisms, supporting listed companies in transforming, upgrading, and becoming stronger, fostering new forms of productivity, and assisting in nurturing more world-class enterprises.
Wu Qing: Urge and guide listed companies to more actively engage in cash dividends and share repurchases.
Wu Qing noted the importance of researching and improving incentive and constraint mechanisms for listed companies to stimulate entrepreneurial spirit and talent-driven innovation. Listed companies should be urged and guided to strengthen awareness of rewarding investors and take more proactive steps in cash dividends and share repurchases. It is also necessary to consolidate and deepen the normalized delisting mechanism, ensure smooth multi-channel exits, and further improve an orderly market ecosystem characterized by survival of the fittest.
Wu Qing: Create a more attractive 'long-term capital, long-term investment' institutional environment
Wu Qing pointed out that a more appealing 'long-term capital, long-term investment' institutional environment should be fostered. Efforts must continue to actively create conditions for constructing a market environment where medium- and long-term capital can 'come willingly, stay securely, and thrive successfully.' This involves promoting the establishment of long-cycle evaluation mechanisms for various types of medium- and long-term capital and increasing the scale and proportion of investments in A-shares. Public fund reforms should be advanced solidly, with mechanisms aligning with investor interests—such as performance evaluations and incentive constraints—implemented effectively. Equity-based public funds should be significantly developed, and high-quality development of index investing should be promoted. The 'fundraising-investment-management-exit' cycle of private equity and venture capital funds should be facilitated, and patient capital, long-term capital, and strategic capital should be cultivated and strengthened.
Editor/melody