In the past 30 years, with the historical process of reform and opening up, Chinas capital market has achieved leapfrog development from scratch, from small to large. At present, the scale of stock market, bond market and commodity futures market are in the forefront of the world, but overall development is not mature, and some deep-seated structural institutional and institutional problems have not been effectively solved. We must adhere to problem orientation, maintain determination and firm confidence, fully draw lessons from international best practices in accordance with the general requirements of market-oriented legalization, revere the market, rule of law, profession and risk, pay attention to exerting the joint efforts of all parties, and strive to find a way that not only follows mature market practices, but also conforms to Chinas development stage. Section characteristics of the capital market development path.
Steady and Steady Promote the Construction of Science Creative Board and Pilot Registration System
Accelerating the Reform and Opening-up of Capital Market
During the thirteenth collective study of the Political Bureau of the Central Committee, General Secretary Xi Jinping clearly put forward for the first time the need to deepen the structural reform of the financial supply side. For this reason, the Securities Regulatory Commission has organized special forces to conduct research and demonstration around the key direction of market reflection, strengthen the top-level design of the capital market, and launch a mature one. Implementing the plan of action to improve the quality of listed companies, we should make great efforts to improve the quality of listed companies through several yearsefforts, such as better entrance, smooth multi-channel export, and strengthening continuous supervision. In accordance with the principles of market orientation, national conditions, overall planning and prudent promotion, we will steadily and step by step promote the reform of the trading system around the goal of improving the effectiveness and security of the market. We will break through the bottlenecks of various institutional investors, such as funds, insurance, enterprise annuities, and actively guide medium- and long-term funds to enter the market, and vigorously develop equity funds. We will strengthen the responsibilities and capabilities of intermediaries and strive to build an international first-class investment bank and wealth management institution. Instead of fulfilling their duties as gatekeepers, accounting firms and other intermediaries act as freelancers or even accomplices, insisting on being accurate, tough and in place to effectively enhance supervision deterrence.
Openness is also reform. We will further implement the directive spirit of General Secretary Xi Jinping, speed up the opening up of the capital market at a high level, carry out extensive international exchanges and cooperation, and continuously improve the internationalization level and service capacity of Chinas capital market. We should adhere to the principle of being open, visible and manageable, and effectively enhance the ability of risk prevention, control and supervision under open conditions.
Firmly adhere to the fundamental goal of serving the high-quality development of the real economy
General Secretary Xi Jinping pointed out that finance is the blood of the real economy, serving the real economy is the duty of finance, the purpose of Finance and the fundamental measure to prevent financial risks. We must always keep in mind the important instructions of the General Secretary, constantly deepen our understanding of the nature, laws and origins of finance, vigorously develop direct financing, especially equity financing, and focus on improving the quality and efficiency of the capital market in serving the real economy. In the aspect of equity financing, we should maintain the normal issuance of new shares, further optimize the system of refinancing, mergers and acquisitions, restructuring, reduction, split and listing, and fully stimulate market vitality. In the aspect of bond financing, we should actively promote the innovation of bonds and asset-backed securities in the exchange market, promote the unification of the standards of issuance access and information disclosure of corporate credit bonds, and promote the interconnection of bond markets. In the aspect of private equity investment, we should improve the differential supervision system and policy support system, vigorously develop venture capital funds and M&A investment funds, and promote the formation of innovative capital. In the futures and derivatives markets, we should increase the supply of futures and options products and institutions, and provide more risk management and hedging tools for the real economy. We will actively support private enterprises to make use of the capital market to develop and grow.
Adhere firmly to the bottom line of no systemic financial risk
General Secretary Xi Jinping attached great importance to the prevention and control of financial risks, and made important instructions and instructions on how to prevent and resolve major financial risks. We must adhere to the bottom line thinking, enhance the sense of distress, put active prevention and resolution of systemic financial risks in a more important position, improve early identification, early warning, early detection and early disposal of capital market risk prevention and control mechanism, play chess first and fight a good initiative. Under the unified and coordinated command of the Finance Committee of the State Council, we should firmly control the risks in key areas such as stock pledge, bond default, private equity funds and over-the-counter allocation, and effectively defuse the stock. We should actively respond to changes in the complex international and domestic environment, actively guide market expectations through deepening reform, and strive to maintain the smooth operation of the capital market.
Continuous strengthening of supervision and law enforcement and protection of investorslegitimate rights and interests
General Secretary Xi Jinping emphasized that financial management departments should strive to cultivate a spirit of supervision that is conscientious, daring to supervise, skilled in supervision and strict accountability, so as to create a serious regulatory atmosphere in which risks are not found in time, negligence is found, risks are not prompted and handled in time, and dereliction of duty is the result. Supervision is the main responsibility of the SFC. We must bear in mind the surname of supervision, further grasp the regulatory positioning, act according to market rules, believe in the market, rely on the market, strive to improve market transparency and efficiency, ensure the continuity and stability of policies, and let the market have clear expectations. We should adhere to supervision according to law and administer the city according to law. We will intensify inspection and law enforcement, crack down severely on fraudulent issuance, insider trading, market manipulation, false beliefs and other violations, and strictly enforce market discipline and purify the market ecosystem. We will further promote simplification and decentralization of government, accelerate functional transformation, strengthen scientific and technological supervision, and improve a unified, efficient and coordinated regulatory system.
To protect the legitimate rights and interests of investors, especially small and medium-sized investors, we must adhere to the concept of large-scale insurance, including legal protection, regulatory protection, self-regulation protection, market protection and self-protection, further improve the legal system of investor protection, strengthen investor education and services, and actively advocate a rational and healthy investment culture.
(The author is the chairman of the China Securities Regulatory Commission, originally titled Striving to build a standardized, transparent, open, dynamic and resilient capital market)