Involved in special valuation and illegal reduction of holdings... heavyweight! China Securities Regulatory Commission speaks out
On September 8th, the China Securities Regulatory Commission (CSRC) announced that it had recently held a symposium with experts, scholars, and domestic and foreign investors. The meeting deeply studied and implemented the spirit of the Central Political Bureau meeting on July 24th, implemented the work deployment of the State Council executive meeting and the State Council plenary meeting, analyzed the current situation of the capital market, held three symposiums to listen to opinions and suggestions on revitalizing the capital market and boosting investor confidence, and exchanged and discussed hot issues of market concern. Yi Huiman, Secretary and Chairman of the Party Committee of the China Securities Regulatory Commission, Li Chao, Member and Vice Chairman of the Party Committee, and major officials from relevant departments of the China Securities Regulatory Commission respectively presided over the meeting.
Key points overview
Steadily advancing the reform of the entire market, process, and chain, and promoting the comprehensive implementation of the stock issuance registration system reform to deepen and implement it in practice
Intensify efforts to prevent and combat counterfeiting in the capital market, and strictly punish illegal and irregular activities such as fraudulent issuance, false disclosure, and illegal reduction of holdings in accordance with the law
Improve the functions of the capital market and promote dynamic balance between investment and financing
Focusing on improving the precision of serving technology-based enterprises and supporting the development of private economy and small and medium-sized enterprises
Steadily expanding institutional openness in the capital market
At the meeting, experts and scholars such as Wu Xiaoqiu, Liu Jipeng, Fan Yun, Lin Yixiang, and Gao Shanwen, as well as leaders of investment management institutions such as Boshi Fund, Southern Fund, Chongyang Investment, and Daohe Investment, as well as overseas institutions such as Temasek, BlackRock, and Qiaoshui, as well as representatives of some individual investors, expressed their opinions and suggestions on how to view the current macroeconomic situation, activate the capital market, and boost investor confidence, focusing on promoting investment and financing balance in the capital market, introducing more medium and long-term funds, further regulating share reduction, increasing cash dividends, optimizing trading mechanisms, severely punishing listed companies for fraud, and protecting the legitimate rights and interests of small and medium-sized investors.
The meeting believes that on July 24th, the Political Bureau of the Central Committee scientifically analyzed the current situation and emphasized that economic recovery is a process of wave like development and tortuous progress, and the long-term fundamentals of China's economy have not changed. We must carefully understand the spirit of the Central Political Bureau meeting and enhance our confidence and determination in development. One is to strengthen our confidence in the overall trend of China's economic development, accurately grasp the trends and highlights of China's economic recovery growth, and deeply understand that achieving the annual growth target has a solid foundation. The second is to strengthen our confidence in preventing and resolving real estate risks. Recently, relevant departments have launched a series of measures in the renovation of "urban villages", "dual use of emergency housing", and coordinated construction of affordable housing. They have introduced substantial positive measures such as adjusting the interest rate of existing housing loans, reducing the minimum down payment ratio, and "recognizing but not recognizing loans". At the same time, they have fully utilized the "city specific policies" toolbox. With the implementation of these policy measures, it is believed that they will promote the stable recovery of the real estate market. The third is to strengthen confidence in preventing and resolving local debt risks. The meeting of the Central Political Bureau emphasized the need to formulate and implement a comprehensive debt reduction plan. The State Council emphasizes the need to vigorously, orderly, and effectively promote substantive insurance in key areas, and local debt risks will be properly handled and effectively managed. The fourth is to strengthen confidence in vigorously developing the private economy. The Central Committee of the Communist Party of China and the State Council have issued opinions on promoting the development and growth of the private economy, making new major deployments to promote the development and growth of the private economy, demonstrating a firm determination to adhere to the "two unwavering" principles. With the implementation of a series of practical measures by relevant parties, the development of the private economy will undoubtedly usher in a broader stage and brighter prospects.
The meeting emphasized that the Central Political Bureau proposed to "activate the capital market and boost investor confidence", fully reflecting the high attention and earnest expectations of the Party Central Committee on the capital market. Activating the capital market and boosting investor confidence is a systematic project. We must adhere to the principle of addressing both the root cause and the root cause, combining the long and short term, further liberating our minds, and identifying the right starting point. First, we should stick to the main line of realizing Chinese path to modernization, maintain strategic concentration, enhance institutional confidence, unswervingly take the road of modern capital market with Chinese characteristics, and promote high-quality development of capital market. Secondly, we must adhere to promoting development and stability through reform, accurately grasp the positive changes in the continuous purification of the market ecology, obvious optimization of market structure, and continuous enhancement of endogenous stability in the registration system reform over the past four years, steadily promote the reform of the entire market, process, and chain, and promote the comprehensive implementation of the stock issuance registration system reform to deepen and implement. The third is to adhere to the main responsibility and business of supervision, improve the supply of rule of law in the capital market, increase the efforts to prevent and combat counterfeiting in the capital market, and strictly punish illegal and irregular activities such as fraudulent issuance, false disclosure, and illegal reduction of holdings in accordance with the law. The fourth is to improve the functions of the capital market, promote the dynamic balance of investment and financing, focus on improving the accuracy of serving technology-based enterprises, support the development of private economy and small and medium-sized enterprises, steadily expand the institutional opening of the capital market, and better promote the stable and healthy operation of the economy. The fifth is to firmly hold onto the bottom line of risks. The overall risk in the current capital market is controllable, and risks in key areas such as leveraged funds continue to converge. We need to establish a firm awareness of the bottom line, while playing a good role in the market's self-regulation mechanism, strengthen coordination and comprehensive policy implementation, and resolutely prevent significant market fluctuations.
The meeting believes that in recent years, the China Securities Regulatory Commission has deeply implemented the spirit of the Central Political Bureau meeting, adhered to the principle of stability as the top priority, and pursued progress while maintaining stability. It has comprehensively implemented policies from various aspects such as investment, financing, trading, and reform, and worked together with relevant parties to study and determine a package of policy measures. Among them, policy measures such as optimizing IPO and refinancing regulatory arrangements, further regulating share reduction behavior, reducing financing margin ratio, reforming public fund rates, relaxing registration conditions for index funds, reducing the minimum settlement reserve payment ratio, and building high-quality Beijing Stock Exchange have been implemented, and the policy effects are gradually becoming apparent. Next, the China Securities Regulatory Commission will carefully study the opinions and suggestions put forward by the attendees, study and introduce more practical and effective policy measures, mature and launch one, and effectively maintain the stable and healthy development of the capital market.
The meeting emphasized that experts, scholars, investment management institutions, and investors are witnesses, participants, and promoters of the reform and development of the capital market. They should fully leverage their respective advantages, take proactive actions, and jointly promote the high-quality development of the capital market. One is to take into account the large number of individual investors in China, which is the largest national and market situation, listen to the voices of investors in a timely manner, respond to their concerns in a timely manner, and continuously improve the long-term mechanism for protecting the legitimate rights and interests of investors. Secondly, we need to focus on the major theoretical and practical issue of building a modern capital market with Chinese characteristics, strengthen research in areas such as better serving high-level technological self-reliance and self-improvement, building a Chinese characteristic valuation system, and shaping a good investment culture in the capital market. We should promptly clarify and clarify key hot issues of market concern, and jointly create a good public opinion environment in the capital market. The third is to accurately grasp the long-term development trend of the capital market, firmly establish the concept of long-term investment and value investment, industry institutions should dare and be good at countercyclical layout, strengthen professional capacity building, and win the trust of investors with long-term stable investment returns.
