The chairman of the China Securities Regulatory Commission, Yi Huiman, pointed out at the 2020 Financial Street Forum on October 21 that the China Securities Regulatory Commission will gradually unify and simplify the channels and methods for foreign participation in China’s capital market, deepen the interconnection between domestic and foreign markets, and expand foreign institutions in the exchange bond market. Investors will have direct access to the market to broaden the scope and path of commodity and stock index futures options. And CSRC will strengthen cross-border audit and international supervision and law enforcement cooperation, and actively participate in international financial governance.
Comprehensively strengthen the infrastructure construction of the capital market
Yi Huiman pointed out that improving the basic system of the capital market is of great significance to promoting high-quality development and helping to form a new development pattern.
Improving the basic system of the capital market is an urgent need to promote the smooth circulation of the national economy. The key to promoting the formation of a new development pattern in which the domestic big cycle is the main body and the domestic and international double cycles promote each other is to improve the adaptability of supply to demand, and form a higher level of dynamic balance in which demand drives supply and supply creates demand.
Improving the basic system of the capital market is the main theme of comprehensively deepening the reform of the capital market. Since last year, the China Securities Regulatory Commission has taken the registration system reform as the leader, focused on playing the role of the “experimental field” of the science and technology innovation board reform, coordinated the promotion of key system innovations in the capital market, strengthened summary evaluation, and gradually extended effective systems to the entire market. This has played a key role in building consensus among all parties and ensuring the smooth progress of reforms.
Improving the basic system of the capital market is a fundamental strategy to prevent and defuse financial risks. The China Securities Regulatory Commission focuses on improving the system and mechanism, making up for shortcomings, strengths and weaknesses, and constantly improving the system and mechanism for risk prevention and control, and resolutely curbing the occurrence of incremental risks; at the same time, relying on institutional constraints to promote the return of listed companies, intermediaries, investors and other parties Be responsible and consolidate the internal foundation for the stable operation of the market.
Improving the basic system of the capital market is an inevitable requirement for scientifically handling the relationship between the government and the market. Yi Huiman emphasized that the establishment of an open and transparent capital market system and rules system, so that the market has clear expectations of supervision, is not only conducive to resolutely delegating power to the market for "not regulated", but also conducive to controlling "regulated" Manage well to realize a virtuous circle of market ecology.
The basic system of the capital market includes four characteristics
Yi Huiman pointed out that the basic system of the capital market should be a set of closely connected, internally coordinated, and mutually supporting institutional ecosystems, which together constitute the "four beams and eight pillars" that guarantee the normal operation and effective functioning of the capital market. Specifically, it includes at least the following four features.
One is that the basic system is extensive, systematic and comprehensive. From the perspective of the organization and operation of the securities and futures market, the basic system includes institutional arrangements in key links and important areas such as issuance, trading, information disclosure, refinancing, continuous supervision and delisting; from the perspective of the effectiveness and hierarchy of the system, it involves both the securities law and the company Laws, Fund Laws, Futures Trading Management Regulations and other laws and regulations, as well as various departmental regulations, regulatory documents and self-discipline rules that play a key role in institutional arrangements; from the perspective of market entities, it covers the regulation of listed companies, intermediaries, and trading Institutional rules for the main actions of venues, investors, etc.
Second, the core of the basic system is to promote the return of all parties in the market to their respective responsibilities. The basic system clarifies the rights and obligations of the market participants through the arrangements of laws, regulations and institutional rules, regulates the organization and operation of the market and the behavior of market entities, including the responsibility boundaries of the regulatory authorities, is to build a benign market ecology and ensure that the capital market functions and functions. Basic and critical institutional arrangements for efficient operation.
The third is that the basic system must be continuous, stable and predictable. The basic system should be fundamental and long-term. Strengthening the construction of basic market systems must embody a scientific understanding and grasp of the laws of market development, highlight the basic concepts and core principles that are conducive to the high-quality development of the capital market, and must not swing around. At the same time, the basic system must have both basic stability and advancement with the times, and continue to enrich and improve with market development.
Fourth, the basic system should reflect an organic combination of starting from reality and drawing on international best practices. my country's capital market is still in the initial stage of development. The investor structure, listed company structure, and the rule of law and integrity environment are quite different from mature markets. We need to learn from international experience, based on my country's national conditions and market conditions, and continue to strengthen the capital market. The timeliness and adaptability of basic system construction have gradually formed a capital market system that not only follows international market practices but also has Chinese characteristics.
Six aspects accelerate the construction of a more mature and more stereotyped capital market basic institutional system
Yi Huiman said that it will accelerate the construction of a more mature and more stereotyped capital market basic institutional system, and continuously enhance the attractiveness and international competitiveness of China's capital market.
The first is to take the reform of the registration system as the leader to promote the innovation of key systems in the capital market.
The China Securities Regulatory Commission will continue to follow the three principles of respecting the basic connotation of the registration system, drawing on international best practices, embodying Chinese characteristics and development stages, and steadily implement the registration system throughout the market on the basis of summarizing the pilot experience of the Sci-tech Innovation Board and ChiNext. Improve the information disclosure rule system oriented to the needs of investors; establish diversified and inclusive issuance and listing conditions, and improve the issuance and underwriting mechanism; create a clear and unified issuance review and registration mechanism with clear rights and responsibilities, unified standards, and transparent and efficient. Actively and steadily optimize the transaction settlement system, enrich risk management tools, optimize the margin trading and securities lending and refinancing systems, and steadily promote the reform of the DVP settlement system. Improve the normalization and multi-channel delisting system arrangements.
The second is to improve a more inclusive and adaptable multi-level capital market system, and continuously strengthen the support of direct financing to the real economy.
It will insist on highlighting characteristics and dislocation development, improve the differentiated positioning and related institutional arrangements of each market segment, further deepen the reform of the new third board, study and issue relevant rules for the transfer of selected companies to the board, and improve the service capabilities for small and medium-sized enterprises. Improve the differentiated supervision and risk prevention system for private equity funds, and give play to the positive role of private equity investment in supporting innovation and entrepreneurship. Promote the interconnection of bond market infrastructure, expand the scope of pilot public offerings of Reits, and actively and steadily promote futures and derivatives market innovation.
The third is to optimize the institutional mechanisms that promote the high-quality development of various market entities.
Taking the opportunity of implementing the "Opinions on Further Improving the Quality of Listed Companies", we will work with local governments and relevant departments to further improve the institutional arrangements for standardized operation of listed companies and make them better and stronger, so as to promote a major leap in the overall quality of listed companies. Improve the endogenous mechanism that promotes the innovation and development of securities, fund and futures operating institutions and is appropriately compatible with risk prevention, encourage and support business, product, service, organizational and technological innovation, improve supporting measures for industry institutions to become better and stronger, and promote the development of world-class investment Banks and wealth management institutions. Improve the audit, evaluation, legal services, and credit rating rules system, consolidate the responsibilities of intermediaries, and build a capital market intermediary system that matches powers and responsibilities.
The fourth is to strengthen the construction of the investment system.
While accelerating reforms on the financing side, we will coordinate reforms on the investment side. Strengthen the team of public fund managers, improve investment advisory business rules, and focus on improving the professional capabilities of various asset management institutions; promote the optimization of the policy environment for the third pillar pension and other medium and long-term funds to enter the market; improve the accounting, performance evaluation and incentive mechanisms for equity investment And other institutional arrangements to cultivate and strengthen the willingness and ability of long-term investment in the capital market. Accelerate the implementation of the securities class action system, improve the institutional mechanisms for the exercise, protection and relief of investor rights, and actively advocate long-term investment, value investment and a rational investment culture.
The fifth is to improve the legal guarantee and supporting support system of the capital market.
Actively do a good job of coordinating the revision of the criminal law, the legislation of the futures law, and the introduction of relevant judicial interpretations, promote the formulation of administrative regulations for the issuance and trading of asset-backed securities, gradually build a legal and regulatory system that conforms to the development of the capital market, and promote the improvement of administrative law enforcement, civil recovery and A supervisory law enforcement system in which criminal punishments are connected and mutually supportive. Deepen the reform of “delegating control, delegating control to service” and implementing the power and responsibility list system to stimulate market innovation.
Sixth, steadily promote the institutional opening of the capital market.
Expanding the high-level two-way opening of the capital market is an inherent requirement for building a new pattern of dual-cycle development. The China Securities Regulatory Commission will study the gradual unification and simplification of channels and methods for foreign participation in China's capital market, deepen domestic and foreign market connectivity, expand exchange bond market foreign institutional investors' direct entry channels, and broaden the scope and path of commodity and stock index futures options. Strengthen cross-border audit and international supervision and law enforcement cooperation, and actively participate in international financial governance.
Support the reform and opening up and high-quality development of Beijing's capital market
Yi Huiman said that the China Securities Regulatory Commission will continue to promote and support the reform and opening up and high-quality development of Beijing's capital market. Continue to deepen the reform of the New Third Board, support Beijing's construction of a private equity trading platform and intellectual property trading center, and promote the improvement of the capital's factor market system. Encourage and support all kinds of domestic and foreign institutions to actively take advantage of the new opportunities in the construction of Beijing's "two districts", accelerate innovation and development, and continue to improve and strengthen. Support Beijing to carry out pilot projects for the supervision of financial technology innovation in the capital market and promote the construction of the capital's regional equity market blockchain registration and custody infrastructure. Actively participate in Beijing's construction of a demonstration zone for the rule of law and credit capital market.