China’s Securities Regulator Commits to Support for Private Enterprise Debt Financing, Cooperation with US Regulators

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The China Securities Regulatory Commission (CSRC) has outlined a slew of policy focal points in the wake of the annual meeting of the Chinese congressional bodies in March.

In a statement published on 16 March CSRC said that it would “uphold the deepening of reform and the expansion of opening, and uphold the principles marketisation and the rule of law,” as well as “actively strengthen communication and coordination with macro-economic authorities and industry authorities.”

Key focal points for work by CSRC in the near-future will include:

  • Firmly advancing comprehensive implementation of reforms of the share issuance registration system.
  • Maintaining the stability and consistency of policy expectations.
  • Aiding the stabilisation of the general macroeconomy and financial operation.
  • Improving mechanisms to support debt financing by privately operated enterprises.
  • Expediting the development of venture investment.
  • Employing the endogenous stabilisation role of markets.
  • Vigorously driving the high-quality growth of listed companies.
  • Encouraging listed companies to increase the intensity of buy-backs.
  • Improving systemic mechanisms that are of benefit to the participation of long-term institutional investors in capital markets.
  • Expanding the cultivation of various types of institutional investors such as mutual funds.
  • Encouraging long-term investment and value-investment.
  • Further driving high-level external opening.
  • Strengthening firm cooperation between mainland and Hong Kong capital markets, and jointly maintaining the healthy and stable development of the Hong Kong market.
  • Continuing to strengthen communication with US regulatory agencies, and striving to complete an agreement as soon as possible on Sino-US auditing regulatory cooperation.
  • Supporting the overseas listing of various types of qualified enterprises, and maintaining smooth channels for overseas listing.
  • Continuing to support rational financing of the real economy.
  • Actively cooperating with relevant authorities to vigorously and effectively dissolve real estate enterprise risk.
  • Expediting the standardised and healthy development of platform economies and raising their international effectiveness.