China’s Securities Regulator Outlines Core Principles for Further Enhancing Role of Capital Markets

The head of the China Securities Regulatory Commission (CSRC) has called for further improvements to the country’s capital markets and the contribution they make to the Chinese economy.

In an interview with the People’s Daily, CSRC chair Yi Huiman (易会满) called for “further improving the role of capital markets, better servicing the establishment of new development conditions and driving high-quality growth.”

Yi highlighted several principles in particular including:

1. Upholding and strengthening the comprehensive leadership of the party, better integrating market forces with the role of the government, and continually driving the modernisation of capital market regulatory systems and regulatory capability.
2. Upholding the focal point of servicing the real economy, and actively integrating into broader socio-economic conditions. Better implementing strategic mandates, including high-level independence and self-strengthening when it comes to science and technology and the establishment of a modernised industrial system. Formulating and implementing a new round of three-year plans to drive increases to the quality of listed companies.
3. Upholding and improving the foundational systems of capital markets. Deepening reforms of the share issuance registration system, and advancing innovations in a raft of related systems. Expanding high-level external opening of systems. Continually strengthening market vitality and international competitiveness.
4. Upholding defence of the baseline against risk. Improving capital market systems for risk prevention, risk early warnings, and risk disposal and accountability. Steadily and effectively performing risk prevention and disposal in key areas, and driving the lawful and comprehensive inclusion of all forms of financial activity within regulation.
5. Upholding the position of the people. Enshrining the regulatory mandate of protecting the lawful rights and interests of small and medium-sized investors, and fully respecting and venerating investors. Improving three-dimensional investment protection safety nets, and pragmatically increasing the sense of satisfaction of investors.