Securities Regulator Points to Imminent Reform of Chinese Capital Markets


A senior official from the China Securities Regulatory Commission says that increasing the competitiveness of Chinese capital markets is one of the urgent tasks confronting policymakers at present.

Zhang Shenfeng (张慎峰), assistant to the CSRC chair and a member of the CSRC party committee, said at a recent tech industry forum in Beijing that “reforms to significantly raise the core competitiveness of [China’s] capital markets has already become imminent.”

“Following 27 years of reform and development, China’s capital markets have achieved significant progress in all areas, but from the perspective of needing to expedite the growth of the real economy, there still exist numerous inadequacies,” said Zhang.

“Reforms to significantly raised the core competitiveness of the market already appear to be imminent.”

According to the state-owned Xinhua News Agency CSRC is currently in the process of organising the establishment of a “capital market strong nation experts forum” (资本市场强国专家座谈会), to hear the opinions and proposals of securities sector experts and funds.

“[We] need to fully employ China’s systemic advantages, change concepts, deepen reform, expand opening, and raise the systemic inclusiveness, market capacity and international competitiveness of China’s capital market system.

“Keeping good companies within the country, enabling good companies to list as quickly as possible, enabling financiers to obtain rapid development and enabling financiers to obtain even more returns should become the common goals for all parties to the market to strive to achieve.”

Zhang said that since 2016 CSRC has “upheld the fundamental direction of capital markets servicing the development of the real economy…endeavoured to promote the normalisation of new share issuance, endeavour to promote substantive mergers and restructurings that satisfy industry upgrades, endeavoured to promote structural optimisation and quality increase of exchange bond markets, so that the level of the capital market’s service innovative enterprise and the real economy firmly takes another step.”