Wu Qing, the chairman of the China Securities Regulatory Commission, made his first public appearance, laying out key priorities for the next phase of supervision and responding to topics such as the construction of an endogenous stability mechanism in the capital market, improving the quality of listed companies, and the perfection of quantitative trading systems.
During an economic press conference at the 14th National People's Congress, Wu Qing pointed out that protecting the lawful rights and interests of investors, especially small and medium investors, is the most central task of the CSRC. He highlighted the next steps in regulation: "strengthening" the foundation and "strict" supervision and management. He emphasized the importance of treating investors sincerely, boosting their confidence, attracting more medium and long-term capital to participate in the market, and stated that a comprehensive review of regulatory shortcomings in various sectors will be conducted.
Wu Qing also proposed specific measures to improve the quality of listed companies, including strict audit registration, rigorous daily supervision, smoothing the delisting mechanism, and emphasizing the responsibilities of all parties. He noted that for the intrinsic stability of the market, at least "one cornerstone" and "five pillars" are needed, with high-quality listed companies being the cornerstone, and a reasonable capital structure, sound basic systems, effective market regulation mechanisms, high-quality professional services, and strict regulatory enforcement as the pillars.
On market operations, Wu Qing noted that while the market has its own laws, if extreme situations such as irrational and violent fluctuations occur, the CSRC will decisively intervene to correct market failures and prevent systemic risks.
Several changes in capital market regulation:
Change 1: Emphasis on the relationship between investment and financing
For the first time on March 6, during a press Q&A, Wu Qing explicitly mentioned the relationship between investment and financing, emphasizing that they complement each other. He stated that the dynamic balance between investment and financing is crucial for the healthy cycle of the capital market. Even though there is a temporary tightening of the IPO rhythm, the handling of the balance between investment and financing has not changed.
Change 2: Focus on fairness and efficiency
Wu Qing highlighted the importance of fair trading and the efficient allocation of resources, stressing that regulation should focus on market fairness. Recently, regulatory authorities have become more stringent in maintaining market order, cracking down on illegal and irregular activities, such as penalizing quantitative private equity firms.
Change 3: Visiting listed companies to address practical issues
The CSRC actively visited over 130 listed companies to promote high-quality development. This included resolving some practical difficulties, such as having local governments address certain issues on the spot.
Change 4: Strict penalties for multiple cases
The CSRC has cracked down on illegal and irregular activities, increased oversight in the new stock issuance field, protected market order and investors' lawful rights and interests, such as administrative penalties for fraudulent issuance.
Change 5: Investor rights protection given top priority
Wu Qing emphasized that protecting investors' lawful rights and interests is the CSRC's primary task and the core of capital market regulation. The goal is to attract more investors to participate in the market and strengthen investor protection.
Change 6: More robust system development
The CSRC is continuously improving the basic system of the capital market, promoting fair, orderly, and efficient market operation. For example, by regulating over-the-counter derivatives businesses like DMA and strengthening system development.
Change 7: Commitment to legal construction
Wu Qing chaired a symposium on the legal construction of the capital market, emphasizing that the prosperity of the market is rooted in the rule of law. The CSRC will increase the supply of legal systems, improve law enforcement efficiency, strengthen judicial protection, and promote the development of the capital market.
Change 8: Improving market expectations, responding to concerns in a timely manner
The CSRC actively researches and listens to opinions, timely responds to market concerns, and promotes problem resolution. Holding symposiums frequently shows the CSRC's attention to market feedback, aiming to consolidate consensus and promote development.
Change 9: Smoothly fulfilling non-listed company corporate bond related responsibilities
The CSRC takes on responsibilities assigned by the National Development and Reform Commission to review the bond issuance of non-listed companies, regularly disclosing bond approval documents, and ensuring the stability of the bond market.
Change 10: Emphasizing the coordinated approach of "stability" and "progress"
Among all changes, the coordinated approach of "stability" and "progress" is a deep characteristic of the CSRC's work. The CSRC will strengthen the construction of endogenous stability mechanisms in the capital market, comprehensively deepen capital market reform, and improve basic systems.
The China Securities Regulatory Commission has taken positive steps in strengthening the supervision of the capital market, striving to promote the healthy development of the market, protect the lawful rights and interests of investors, and promote the construction of legal systems and the perfection of systems in the capital market.
