It's about your stocks, the China Securities Regulatory Commission speaks up! Release multiple heavyweight signals in the capital market | trading | China Securities Regulatory Commission

According to the website of the China Securities Regulatory Commission, on the 18th, the relevant person in charge of the commission answered reporters' questions on revitalizing the capital market and boosting investor confidence. Striving to make breakthroughs in reducing transaction costs and researching appropriate extensions of trading hours in the A-share market... What impact will the multiple heavyweight signals released this time have on the capital market?

Strive to achieve breakthroughs in reducing transaction costs

Transaction costs have always been a topic of concern for people. This time, the relevant person in charge of the China Securities Regulatory Commission stated that efforts will be made to achieve breakthroughs in introducing fresh water, reducing transaction costs, and improving transaction smoothness. And it was mentioned that the next step will be to reduce securities trading fees and simultaneously lower commission rates for securities companies.

According to the website of the China Securities Regulatory Commission, the commission has guided the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange to further reduce securities trading fees starting from August 28th.

"If the trading costs carried by a stock market are too high, that is, when investors need to bear relatively high trading costs, it will not only limit the participation of small and medium-sized investors, but also reduce market activity," Pan Xiangdong, Chief Economist of Qirhenium Research Institute, told reporters.

"Therefore, the China Securities Regulatory Commission (CSRC) has proposed to reduce securities trading fees in the next step, which can significantly reduce trading costs for investors, lower investment thresholds, enhance market vitality, and increase A-share liquidity." Pan Xiangdong mentioned that this move also helps to attract more investors to participate in stock market trading, thereby improving market transaction scale and enhancing domestic capital market competitiveness.

In addition, there has been a high demand from investors recently to reduce the stamp duty rate on securities trading. The relevant person in charge of the China Securities Regulatory Commission stated that from a historical perspective, adjusting the stamp duty on securities transactions has played a positive role in reducing transaction costs, activating market transactions, and reflecting inclusive effects. It is recommended to inquire with the competent department about the specific situation.

According to a research report by Galaxy Securities, China has made four adjustments to stamp duty since 2000. After the four reductions in stamp duty rates, the trading volume of the Shanghai Composite Index increased by 71%, 98%, 114%, and 139% respectively during the week, greatly enhancing the market transaction scale.

Research on appropriately extending the trading time of the A-share market

In order to better meet the needs of investment trading, the relevant person in charge of the China Securities Regulatory Commission stated that the next step will be to study the appropriate extension of trading hours in the A-share market and exchange bond market.

"There have always been voices in the market about extending the trading time of A-shares, because from an international perspective, the trading time of China's A-share market is 4 hours, which is relatively short among major global stock markets," Pan Xiangdong said.

The reporter noticed that currently, among the major global stock markets, the trading time of the US stock market is 6.5 hours, the trading time of the UK, France, and Germany stock markets is 8.5 hours, and the trading time of the Japanese stock market is 5 hours.

In Pan Xiangdong's view, extending trading hours will greatly stimulate the enthusiasm of market investors to participate, and also improve the market's response time to information, which helps to increase trading volume and improve stock market pricing efficiency. Naturally, it also has a direct promoting effect on the active capital market.

The timing for implementing T+0 trading at the current stage is not mature

Recently, there has been a lot of discussion in the market about the T+0 trading system in the stock market. Regarding this, the relevant person in charge of the China Securities Regulatory Commission stated that T+0 trading objectively has a certain positive effect on enriching trading methods and improving trading activity. However, it should also be noted that the stock price trend of listed companies depends on their quality and operational efficiency, and the T+0 trading method has limited medium to long-term impact on market valuation.

"At present, the A-share market is mainly dominated by small and medium-sized investors, with 96% of small retail investors holding a market value of less than 500000 yuan. Implementing T+0 trading at this stage may amplify market speculation and manipulation risks, especially institutional investors' extensive use of programmatic trading. Implementing T+0 trading will exacerbate the disadvantaged position of small and medium-sized investors, which is not conducive to fair market trading. We believe that the timing for implementing T+0 trading at this stage is not mature."

Yang Delong, Chief Economist of Qianhai Open Source, also mentioned to reporters that there is significant disagreement among various parties regarding the T+0 trading issue in the stock market. "Although it objectively has a positive effect on improving trading activity, it may also lead to increased market speculation."

In May 1992, the Shanghai Stock Exchange was the first to implement the T+0 trading system, while lifting restrictions on stock price fluctuations. In November 1993, the Shenzhen Stock Exchange also began allowing T+0.

"However, due to the significant fluctuations brought by the T+0 system to the stock market, it fostered a speculative atmosphere. On January 1, 1995, A-share and fund trading in the Shanghai and Shenzhen stock markets returned to T+1 trading from T+0. Compared to T+1, the T+0 trading system can activate market transactions, improve pricing efficiency, but also amplify market fluctuations," said Xun Yugen, Chief Economist of Haitong Securities.

Clear regulatory framework for reducing holdings of major shareholders through divorce

Recently, the market has been paying more attention to the reduction of holdings by major shareholders. How to improve the reduction system and strengthen the supervision of reduction behavior?

The relevant person in charge of the China Securities Regulatory Commission stated that major shareholders, directors, supervisors, and senior executives are the "key minority" of listed companies. Recently, we have clarified the regulatory framework for reducing holdings of major shareholders, directors, supervisors, and executives through divorce, dissolution, and separation, eliminating potential institutional loopholes.

According to its disclosure, the China Securities Regulatory Commission will continue to do a good job in reducing holdings in the next step. On the one hand, we will resolutely crack down on illegal reduction of holdings, and promptly and seriously deal with behaviors such as excessive reduction, undisclosed reduction, and avoidance of restrictions on reduction. On the other hand, closely monitor the issue of shareholder reduction reflected in the market, timely study and optimize the reduction rules, further regulate the reduction behavior of major shareholders, directors, supervisors, and other relevant parties, and enhance institutional constraints.

Pan Xiangdong believes that from the perspective of safeguarding the interests of the company and small and medium-sized shareholders, corresponding regulatory rules and clear guidelines have been established for the reduction of holdings by major shareholders, directors, supervisors, and senior executives. "It will help maintain the principle of fairness in the capital market. While effectively protecting the interests of small and medium-sized investors and boosting confidence, it will also establish a more open and transparent capital market."