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After 10 years, China has again issued new regulations on the capital markets

Today, April 12, the State Council issued "Several Opinions on Strengthening Supervision, Risk Prevention and Promoting High-Quality Development of the Capital Market", which consists of 9 parts, called the new "Nine Standards national" on the capital market.

This is the second capital market guidance document issued by the State Council after a gap of 10 years since the two "Nine National Articles" of 2004 and 2014.


The new "Nine National Articles" gradually propose capital market development objectives for the next five years and introduce a series of measures to this end.

These are the eight pillars of the reform:

  • Strictly control access to issuing and listing;

  • Rigorous and continuous supervision of listed companies

  • Strengthen supervision of delisting

  • Strengthen the supervision of securities fund institutions and promote the industry to return to its roots and become better and stronger

  • Strengthen transaction supervision and improve the inherent stability of the capital market

  • Vigorously promote the entry of medium and long-term funds into the market and continue to strengthen long-term investment capabilities

  • Further comprehensively deepen reform and opening-up to better serve high-quality development

  • Promote the formation of synergies to promote high-quality development of the capital market

The "Opinions" emphasize that Beijing must be inspired by "Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the 20th National Congress of the Communist Party of China and the Second Plenary Session of the 20th Central Committee, and focus on on building a safe, standardized, transparent, open, dynamic and resilient market. The capital market will focus on strengthening supervision, preventing risks and promoting high-quality development, giving better performance of market functions of capital, promoting the construction of financial power and serving the overall situation of Chinese-style modernization".

The opinions emphasize that the party leadership must be supported and strengthened to ensure that the capital market always maintains the right direction of development; the concept of finance for the people must always be practiced, and the legitimate rights and interests of investors, especially small and medium-sized investors, large investors, must be protected more effectively; supervision must be comprehensively strengthened, effectively prevent and resolve risks, and ensure that supervision is "thorny" and strict; we must always adhere to the principles of marketization and the rule of law, further and comprehensively deepen the capital market, reform and coordinate openness and security; We must firmly grasp the theme of high-quality development, more effectively serve the key sectors of the national economy and build a modern industrial system.

The "Opinions" require that China must strictly control access to issuance and listing, improve listing standards on the main board and GEM, improve evaluation standards for scientific and technological innovation attributes of the Science and Technology Innovation Board, expand the coverage of on-site inspections, strengthen the responsibilities of the entire issuing and listing chain, and increase supervision of issuing and underwriting, rigorously investigate illegal issuing and other illegal matters.

"It is necessary to strictly regulate the continuous supervision of listed companies, build a comprehensive punishment and prevention system to combat counterfeiting in the capital market, severely crack down on all kinds of illegal shareholding reductions, strengthen the supervision of cash dividends of companies listed companies, and promote listed companies to increase the value of their investment."

"It is necessary to intensify supervision on delisting, further strengthen mandatory delisting standards, unblock multiple delisting channels, thoroughly crack down on various illegal "shell preservation" behaviors, and improve investor compensation and relief mechanism during the delisting process. cancellation. It is necessary to strengthen the supervision of securities and fund institutions, strengthen shareholder management and access to enterprises, actively cultivate good industrial and investment culture, improve the industry salary management system, resolutely correct bad habits and promote the industry's return to its roots, become better and stronger."

"It is necessary to strengthen the supervision of high-frequency quantification and other transactions, seriously investigate and address illegal activities such as market manipulation and malicious short selling, strengthen strategic power reserves and the construction of stabilization mechanisms, and include the impact of major economic events or non-economic policies on the capital market in assessing the coherence of macro policy orientations, improve the inherent stability of the capital market."

"It is necessary to vigorously promote the entry of medium and long-term funds into the market, vigorously develop public equity funds, optimize the policy environment for equity investment of insurance funds, improve the investment policies of national social insurance funds and basic pension insurance, and encourage bank asset management and trust funds to actively participate in the capital market."

"It is necessary to further comprehensively deepen the reform and opening-up, promote the deepening and consolidation of the securities issuance registration system, enhance the inclusiveness of new industries, new business forms and new technologies, promote the development of new productive forces, improve the multi-economy capital market system at the national level, and adhere to the high-level institutional model of capital market coordination, open and secure."

"It is necessary to strengthen the construction of the rule of law in the capital market, intensify the joint crackdown on illegal securities and futures crimes, deepen center-local and inter-ministerial coordination and connection, create a regulatory iron army with a strong policy , strong ability and strong working style, and promote the formation of a system that promotes high-quality development of the capital market."

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