Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), recently presided over a meeting of the Party Committee (Enlarged), emphasizing the steadfast implementation of the important requirement of “stabilizing the property and stock markets” and the effective maintenance of the stability of the capital market.

The meeting underscored that the recent Central Economic Working Conference had made important deployment for the work of the capital market, which fully demonstrated the Chinese central government attaching great importance and having high expectations for the work of the capital market. The key is to highlight the maintenance of market stability.

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China will resolutely implement the important requirement of “stabilizing the property and stock markets”; enhance the forward-looking and proactive nature of market monitoring, early warning and response; strengthen the coordinated regulation of domestic and foreign, on- and off-exchange, and futures and spot markets; reinforce targeted monitoring and regulation of margin trading and short selling, over-the-counter derivatives and quantitative trading; accelerate the implementation of incremental policies; continue to leverage monetary policy tools to stabilize the market; improve market expectation management; and focus on stabilizing capital and liquidity.

Second, more efforts should be made to serve the economic rebound effectively. China will adamantly grasp the focus of supporting the development of new quality productive forces; enhance the inclusiveness and adaptability of the issuance and listing system; encourage mergers, acquisitions and reorganizations aimed at industrial integration and upgrading; and cultivate and expand patient capital. China will provide more targeted and effective support for investment expansion and consumption promotion; and improve the system of equity, debt and futures products and services that cover the development needs of all types of enterprises.

Third, China will deepen the comprehensive reform of investment and financing in the capital market. It will endeavor to promote the entry of medium- and long-term funds into the market; and collaborate to create a sound institutional environment for “long-term investment of long-term money” such as national social security funds, insurance, annuities, and wealth management. China will further remove obstacles and blockages and ensure an abundant supply of funds. It will push ahead the implementation of the registration system for stock issuance; deepen the reform of the Science and Technology Innovation Board, the ChiNext market, and the Beijing Exchange; and improve the multi-level capital market service system.

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