On November 21, Yi Huiman, chairman of the China Securities Regulatory Commission, said in his keynote speech at the 2022 Financial Street Forum Annual Meeting that the 20th National Congress of the Communist Party of China proposed to comprehensively promote the great rejuvenation of the Chinese nation with Chinese-style modernization. The Party Central Committee has repeatedly emphasized that it is necessary to take the road of financial development with Chinese characteristics. This is the mission and responsibility that the financial sector must undertake in the process of Chinese-style modernization. We believe that to study and implement the spirit of the 20th National Congress of the Communist Party of China, the most important thing for practitioners in the capital market is to build and develop a modern capital market with Chinese characteristics. Focusing on the overall goal of “building a standardized, transparent, open, dynamic and resilient capital market”, the organic integration of “Chinese characteristics” and “general laws of the capital market”, and the expectations and concerns of all parties, we need to address Make more in-depth and systematic thinking about the basic connotation, realization path, and key tasks of a modern capital market with Chinese characteristics. According to observations, among the many factors currently restricting the functioning of the capital market, there are not only a lack of deep understanding of “Chinese characteristics”, inadequate grasp, deviations in implementation, and simple “bringing-in” problems; “The understanding is not comprehensive, and the essence cannot be seen through the phenomenon. There are not only market issues, but also regulatory issues, as well as deeper cultural issues. We must adhere to the concept of the system, adhere to the two-point theory and dialectics, insist on proceeding from reality in everything, and on the basis of following the general laws of the capital market, better reflect Chinese characteristics and take our own path.
my country’s capital market has obvious characteristics of emerging and transition, and the structure of listed companies also reflects the trend of adapting to the evolution of the economic system and the transformation and upgrading of industrial structure. We have always adhered to the “two unwavering” principles, and supported economies of all types of ownership to use the capital market to grow stronger. At present, state-owned listed companies and listed state-owned financial enterprises account for nearly half of the market value, reflecting the status of state-owned enterprises as an important pillar of the national economy; private listed companies account for more than two-thirds, and private enterprises account for 80% of newly listed companies in recent years Above; the market capitalization of foreign-controlled listed companies accounts for about 4%. The coexistence of multiple ownership economies, the structure of listed companies covering all major industries, and the common development of small and medium-sized enterprises is not only a major feature of my country’s capital market, but also a major advantage. We need to have a deep understanding of the distinctive Chinese elements and development stage characteristics reflected in our market system and mechanism, industry structure, and sustainable development capabilities of the main body, and conduct in-depth research on the applicable scenarios of mature market valuation theories, and grasp the valuation logic of different types of listed companies. , to explore the establishment of a valuation system with Chinese characteristics, and promote the better function of market resource allocation.
The level of valuation directly reflects the market’s recognition of listed companies. Listed companies, especially state-owned listed companies, must, on the one hand, “promote their internal skills”, strengthen professional strategic integration, and enhance core competitiveness; A good understanding of the intrinsic value of the enterprise is also the proper meaning of improving the quality of listed companies.
my country’s capital market started late and developed rapidly, and the cultural accumulation of the market is not enough. After hundreds of years of development, the global market has gradually formed a relatively mature investment philosophy, industry culture and code of conduct, and we still need to continue to learn from it. The duty of a wealth management institution is to “be entrusted by others to manage money on behalf of others”. An excellent institution must insist on putting the interests of customers first, respect investors, and have good professionalism. However, some of our institutions have gaps in concepts and behaviors. . Strictly abiding by the responsibility of the “gatekeeper” is the basic requirement for sponsor intermediaries in the world. It is the bottom line to select real companies, and it is the level to select excellent companies. However, some of our institutions have not changed much, and they still pay too much attention to “approvability” and not enough attention to “voicability”, and some even “go through the barriers with illness”. Professional focus is the core competitiveness of first-class investment institutions, but some of our investment institutions have not yet firmly established the concept of value investment, are keen to chase market hotspots, and have obvious characteristics of “retail-oriented”. We must fully absorb and learn from the concepts of respecting the rule of law and abiding by the spirit of contracts in mature markets, improve the corresponding accounting, assessment and evaluation systems, uphold a professional attitude, cultivate good professional ethics, and make the capital market more healthy and full of vitality.
We propose that the general laws of the capital market should be combined with the reality of the Chinese market, and with the excellent traditional Chinese culture. my country’s economy is dominated by the domestic cycle, and the domestic and international dual cycles promote each other. We sincerely welcome foreign institutions and funds to participate in China’s capital market more extensively and more deeply. It should be noted that domestic investors in the A-share market account for more than 95% of the shares. Our institutions must study and grasp these basic characteristics when making investments. They must have independent professional judgment and research capabilities. , too impetuous. It is necessary to pay more attention to absorbing wisdom from the excellent traditional Chinese culture, to carry forward cultural concepts such as prudence, truth-seeking, prudence, humility and prudence, and to improve the corresponding corporate governance, incentive and restraint, risk control and regulatory systems. , multi-pronged approach, a long time for success.
From a global perspective, the structure of investors in the capital markets of various countries is quite different, and there is no optimal investor structure, but institutionalization is a major trend. In recent years, the investor structure of the A-share market is undergoing positive trend changes. The proportion of institutional investors’ holdings and transactions has steadily increased, while the proportion of individual investors’ transactions has gradually decreased to about 60%. But we must be soberly aware that the number of individual investors exceeds 200 million, which is the largest market situation in my country’s capital market, an important source of market vitality, and an important support for the normal functioning of the market. While continuing to develop and strengthen institutional investment forces, we must pay more attention to the protection of the legitimate rights and interests of small and medium-sized investors. Over the past few years, we have actively practiced the people-oriented nature of supervision, improved the pattern of “big insurance” from various aspects such as system design, supervision and law enforcement, and risk disposal, optimized the 12386 investor service platform, and unblocked the channels for investors’ appeals, and achieved good results. . In the next step, we need to further intensify our work and take more effective measures. In terms of information disclosure arrangements, further highlight simplicity and ease of understanding, so that small and medium investors are willing to read and understand. Urge listed companies to pay more attention to the demands of small and medium-sized investors, and provide equal and smooth communication channels. Better implement institutional arrangements such as advance compensation, order to repurchase, and priority of civil compensation liability.
Yi Huiman said that building a modern capital market with Chinese characteristics is our common mission and task in the new era and new journey. Facing many major theoretical and practical issues, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, in-depth study and implementation The spirit of the 20th National Congress of the Communist Party of China adheres to the principle of “establishing a system, non-intervention, and zero tolerance”, adheres to awe of the market, the rule of law, professions, and risks, and forms a joint supervision concept. Market theory innovation, practical innovation, and institutional innovation will further improve the functions of the capital market, better serve the construction of a new development pattern, and promote high-quality development. The focus should be to grasp the following principles.
One is to uphold and strengthen the overall leadership of the party. We should better combine the power of the market with the role of the government, give full play to our institutional advantages, accelerate the construction of a market ecology in which all parties jointly build, govern and share, and continuously promote the modernization of the capital market governance system and governance capabilities.
The second is to adhere to the focus of serving the real economy. Actively integrate into the overall economic and social situation, better implement strategic deployments such as high-level technological independence and self-improvement, and build a modern industrial system to promote high-level circulation of technology, capital, and the real economy. Formulate and implement a new round of three-year action plans to improve the quality of listed companies. At present, it is necessary to pay close attention to the difficulties and challenges facing the real estate industry, support the implementation of plans to improve the balance sheets of high-quality real estate companies, continue to support the reasonable bond financing needs of real estate companies, support real estate-related companies to carry out mergers and acquisitions and supporting financing, and support a certain proportion of real estate-related businesses of enterprises carry out equity financing.
The third is to persist in improving the basic system of the capital market. Adhere to the principle of marketization and rule of law, learn from international best practices, and combine Chinese characteristics and characteristics of the development stage to further promote the reform of the stock issuance registration system, coordinate and promote a package of key institutional innovations, expand high-level institutional opening-up, and continuously enhance market vitality and international standards. Competitiveness.
The fourth is to stick to the bottom line of risk. Improve the accountability system for capital market risk prevention, early warning, and disposal, do a good job of risk prevention and disposal in key areas, and promote the inclusion of all types of financial activities in accordance with the law.
The fifth is to adhere to the people’s position. Keep in mind the regulatory mission of protecting the legitimate rights and interests of small and medium-sized investors, fully respect and respect investors, improve the three-dimensional insurance safety net, and effectively enhance investors’ sense of gain.