China Securities Regulatory Commission Focuses on Investment-Side Reform to Expand Capital Market
Yi Huiman, Secretary and Chairman of the Party Committee of the China Securities Regulatory Commission (CSRC), recently spoke to Xinhua News Agency in an exclusive interview about the commission’s efforts to build a modern capital market with Chinese characteristics. Yi emphasized the importance of mature policies and attracting medium- and long-term funds into the market.
According to the Shanghai Securities News, the policy framework for the modern capital market with Chinese characteristics has adopted a “1+N+X” system, with a core measure being the formulation of an action plan for investment-side reform. This plan aims to solve the problem of insufficient medium and long-term funds in the capital market and to promote long-term and stable investment behavior. The ultimate goal is to improve the quality and efficiency of the capital market in serving the real economy and investors.
The China Securities Regulatory Commission will work on multiple measures to guide medium and long-term funds into the market. Among these measures, some important policies have been introduced or are currently in the implementation stage. For example, the State Administration of Financial Supervision issued a notice to optimize the solvency supervision standards for insurance companies, which seeks to increase the allocation of insurance funds to blue-chip stocks and technology stocks. Additionally, the Ministry of Finance issued a notice guiding the long-term investment of insurance funds and strengthening the long-term assessment of state-owned commercial insurance companies.
These measures have seen positive responses and increased efforts from listed companies, public funds, and other types of funds to enter the market. Over 580 listed companies have carried out repurchase operations amounting to nearly 26 billion yuan, and public funds have self-purchased their equity products with accumulated funds exceeding 2 billion yuan. Central Huijin, also known as the “national team,” has also increased its holdings in major banks and bought ETF products.
Liu Jianping, general manager of China Europe Fund, believes that the current time provides a valuable opportunity for accelerating the entry of more medium and long-term funds into the market. This move, he says, would not only increase market entry proportion, but also improve the overall quality of the A-share valuation system.
The reform proposed by the China Securities Regulatory Commission signals a comprehensive approach to bolstering the country’s capital market. With adequate policy measures, the commission aims to create a robust market environment that attracts both domestic and international investors while serving the real economy.