GuShiio.com ① Optimize the M & A, reorganization, equity incentive and other systems of technology-based listed companies, implement the “Six Points for M & A”, and support listed companies to implement M & A and reorganization around industrial transformation and upgrading, and strengthening and replenishing chains.
② Open up obstacles for medium-and long-term funds such as social security, insurance, and financial management to enter the market, and accelerate the advancement of digitalization and intelligent empowerment of the capital market.
Financial Union, February 7, according to the website of the China Securities Regulatory Commission, in order to thoroughly implement the deployment requirements of the Third Plenary Session of the 20th CPC Central Committee, the Central Financial Work Conference, the Central Economic Work Conference and the new “Nine National Articles” on doing a good job in science and technology finance, green finance, inclusive finance, pension finance, and digital finance, actively leverage the function of the capital market and improve the quality and efficiency of serving the real economy, The China Securities Regulatory Commission of China has formulated the “Implementation Opinions on the Five Major Articles” of Capital Markets for Doing a Good Job in Finance “(hereinafter referred to as the” Implementation Opinions “).
The “Implementation Opinions” focus on supporting the development of new productive forces, highlight deepening the comprehensive reform of investment and financing in the capital market, enhance institutional inclusiveness and adaptability, and promote factor resources to major strategies and key areas such as scientific and technological innovation, advanced manufacturing, green and low-carbon, and inclusive people’s livelihood. Areas and weak links gather. Focusing on strengthening financial services for the entire chain and life cycle of technology-based enterprises, enriching the product institutional system of the capital market to promote green and low-carbon transformation, improving the efficiency of the capital market in serving inclusive finance, promoting the capital market to better meet diversified pension financial needs, accelerating Promote digitalization and intelligence empower the capital market and strengthen the “five major articles” service capabilities of industry institutional finance, 18 policy measures were proposed in terms of improving the synergy of the capital market and doing a good job in the “five major articles” of finance.
In the next step, China Securities Regulatory Commission will adhere to the principle of seeking progress while maintaining stability and promoting stability through progress, coordinate risk prevention, strengthen supervision, and promote high-quality development, strengthen policy coordination, organization implementation, publicity and guidance, and solidly promote the capital market to do a good job in the “five major articles” of finance to better serve the overall situation of China’s modernization and high-quality economic and social development.
Implementation Opinions on the “Five Major Articles” of Capital Markets for Doing a Good Job in Finance
All dispatched offices, exchanges, subordinate units, associations, and bureaus within the China Securities Regulatory Commission:
In order to thoroughly implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, the Central Financial Work Conference, the Central Economic Work Conference and the “Several Opinions of the State Council on Strengthening Supervision and Preventing Risks and Promoting High-quality Development of the Capital Market”(Guo Fa [2024] No. 10) Deployment requirements, actively give full play to the function of the capital market, and strive to do a good job in the “five major articles” of science and technology finance, green finance, inclusive finance, pension finance, and digital finance to better serve the high-quality economic and social development and formulate these implementation opinions.
1. Overall requirements
Guided by Xi Jinping Thought on Socialism with China Characteristics for a New Era, we will fully implement the spirit of the 20th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 20th Central Committee of the Communist Party of China, completely, accurately and comprehensively implement the new development concept, and focus on building systems and mechanisms to support comprehensive innovation and serve the development of new quality productive forces, deepen structural reforms on the financial supply side, improve the basic system of the capital market, enhance inclusiveness and adaptability, and strengthen the functions of the capital market in promoting capital formation and optimizing resource allocation. Promote the concentration of factor resources in major strategies, key areas, and weak links such as scientific and technological innovation, advanced manufacturing, green and low-carbon, and universal people’s livelihood, so as to better meet the needs of high-quality development for high-quality financial services and help China’s modernization.
–Adhere to political leadership and serve the overall situation. Deeply grasp the political and people-oriented nature of capital market work, adhere to the mission of serving the real economy, establish a firm concept of finance for the people, and provide higher-quality and more efficient financial services for economic and social development.
–Adhere to problem-oriented and implement precise policies. Highlight key points and strive for practical results, strive to break through the bottlenecks and difficulties in the capital market to do a good job in the “five major articles” of finance, create a good institutional environment, improve policy accuracy and effectiveness, and promote a virtuous cycle of economy and finance.
–Adhere to integrity and innovation, and seek progress while maintaining stability. Make good use of the “key move” of reform and persist in promoting the innovative development of the capital market on the track of marketization and legalization. Properly handle the relationship between the government and the market, deepen the comprehensive reform of investment and financing in the capital market, and strengthen risk prevention and control and regulatory capacity building.
–Adhere to system integration and coordination. To do a good job in the “five major articles” of finance, the capital market must not only ensure that each article has its own focus, but also focus on systematicness, integrity, and synergy, and strengthen coordination and connection with policies in the fields of finance, finance, taxation, and industry.
2. Strengthen financial services for the entire chain and life cycle of technology-based enterprises
(1) Support the issuance and listing of high-quality technology-based enterprises. Continue to promote the implementation of a package of policies and measures such as the “Sixteen Measures on Capital Markets Serving the High-level Development of Science and Technology Enterprises” and “Eight Measures on Deepening the Reform of Science and Technology Innovation Board to Serve Scientific and Technological Innovation and the Development of New Quality Productivity”. Adhere to the “four orientations”, further enhance the inclusiveness of new industries, new business formats and new technologies, and increase strategic support for new generation information technology, artificial intelligence, aerospace, new energy, new materials, high-end equipment, biomedicine, quantum technology, etc. Sexual industry support. Actively explore ways to combine effective markets with promising governments, further improve the institutional mechanism for accurately identifying technology-based enterprises, and strengthen efforts to support the issuance and listing of technology-based enterprises that break through key core technologies in new industries, new business formats and new technology fields. Continue to support the issuance and listing of high-quality unprofitable technology companies. Improve information disclosure rules for technology-based enterprises. Optimize the new share issuance and underwriting mechanism, dynamically evaluate the pilot implementation effect of the Science and Technology Innovation Board’s deepening of the issuance and underwriting system, and expand the scope of application in a timely manner. Steadily promote the implementation of the “light assets, high R & D investment” recognition standard and the release and implementation of the refinancing storage rack issuance system. Guide technology-based enterprises to make reasonable use of the “two markets and two resources” for domestic and overseas listings, and support high-quality technology-based enterprises listed overseas to return to A-shares.
(2) Optimize the systems for mergers and acquisitions, restructuring, equity incentives and other systems for technology-based listed companies. Implement the “Opinions on Deepening the Reform of the M & A Market of Listed Companies” and take multiple measures to activate the M & A market. Encourage technology-based enterprises to carry out mergers and acquisitions in upstream and downstream industries in the same industry, and support listed companies to carry out mergers and acquisitions around industrial transformation and upgrading and finding a second growth curve. Support listed companies to acquire high-quality unprofitable assets that help strengthen chains and improve key technical levels. Support technology-based enterprises to reasonably carry out cross-border mergers and acquisitions. Improve the inclusiveness of the valuation of mergers and acquisitions of technology-based enterprises, and support the adoption of diversified valuation methods that adapt to the characteristics of new productivity. Improve the absorption and merger system and rules, and support listed companies in carrying out absorption and mergers. Encourage technology-based listed companies to comprehensively use multiple payment instruments such as shares, directional convertible bonds, and cash to implement mergers and acquisitions, and establish an installment payment mechanism for share consideration. Promote the implementation of simplified procedures for mergers and acquisitions and reorganizations to be effective. Encourage the development of M & A funds. Compile more scientific and technological innovation indices and develop more public funds with scientific and technological innovation themes and related futures and options products. Improve the inclusiveness and flexibility of equity incentives for technology-based enterprises, optimize implementation procedures and reserved rights arrangements, and apply regulations such as short-term transactions and window periods to the granting and ownership optimization of equity incentives.
(3) Guide private equity venture capital funds to invest early, small, long-term, and hard technology. Implement the policy arrangements of the General Office of the State Council on promoting the high-quality development of venture capital, smooth the diversified exit channels for private equity venture capital funds, and promote a virtuous cycle of “fundraising, investment, management and withdrawal”. Optimize the “reverse pegging” policy for private equity and venture capital funds to exit. Promote the pilot program of physical distribution of stocks by private equity venture capital funds to investors. Study and improve the private equity venture capital fund share transfer system and mechanism. Support the development of private equity secondary market funds (S funds). Support pilot projects for direct equity investment by financial asset investment companies. Expand the funding sources of private equity and venture capital funds through multiple channels, make greater efforts to attract social capital participation, and actively develop patient capital.
(4) Increase the support of multi-level bond markets for scientific and technological innovation. Promote the high-quality development of scientific and technological innovation corporate bonds, optimize the issuance and registration process, encourage relevant institutions to provide credit enhancement support for technology-based enterprises to issue bonds in accordance with the principles of marketization and legalization, and explore and develop more science and technology-themed bonds. Incorporate high-quality enterprise science and technology innovation bonds into benchmark market-making varieties, and increase policy support for the exchange’s pledged repo discount coefficient. Explore intellectual property asset securitization business. Support the issuance of real estate investment trusts (REITs) for projects in new infrastructure such as artificial intelligence, data centers, and smart cities, as well as science and technology innovation industrial parks, promote the revitalization of existing assets, and support the digital transformation of traditional infrastructure.
3. Enrich the product institutional system of the capital market to promote green and low-carbon transformation
(5) Improve the green finance standard system in the capital market. Continue to optimize green bond standards, unify the use of raised funds, information disclosure and regulatory requirements, and study and improve evaluation and certification standards. Rating agencies are encouraged to incorporate environmental information indicators into bond issuance rating methods. Implement the exchange’s sustainable information disclosure rules and continue to strengthen the information disclosure requirements for listed companies to implement green development. Study and strengthen the construction of sustainable rating and certification systems and improve regulatory mechanisms. Actively participate in the formulation of international sustainability standards and promote the International Sustainability Standards Council to further enhance the inclusiveness and operability of the standards. Study and formulate green stock standards and unify business rules. Promote the improvement of the green finance statistical system.
(6) Enrich green financial products in the capital market. Support qualified green industry enterprises in issuing and listing, financing mergers and acquisitions, and issuing green bonds, green asset-backed securities, etc. Further improve the convenience of green bond application acceptance, review and registration. Launch more green-themed public funds. Encourage the development of green private equity venture capital funds. Promote the construction of the carbon futures market and the R & D and listing of carbon emission futures in a steady and orderly manner, and support qualified financial institutions to participate in carbon emission trading on the premise of compliance with laws and regulations and controllable risks. Develop more green low-carbon futures and options that meet the development needs of the real economy. Support the Guangzhou Futures Exchange to build a green futures exchange. Enrich the green index system and its derivatives. Continue to deepen green international cooperation and promote the two-way opening of the green securities market.
4. Improve the efficiency of the capital market in serving inclusive finance
(7) Improve the institutional arrangements for the capital market to serve small, medium and micro enterprises. We will further promote the Beijing Stock Exchange and the New Third Board inclusive finance pilot projects, and support the listing of high-quality small and medium-sized enterprises such as “specialized, specialized and innovative”. Accelerate the establishment of a statistical evaluation system for inclusive financial services on the Beijing Stock Exchange and the New Third Board, play the role of evaluation “baton”, guide market institutions to tilt resources towards inclusive financial services, and increase the intensity of docking services for small, medium and micro enterprises. Standardize the development of regional equity markets, improve the comprehensive services of “specialized, specialized and innovative” special boards, and strengthen organic connections with national securities exchanges. Promote the docking of regional equity market rules and the unification of standards.
(8) Enrich the ways in which the capital market serves agriculture-related entities. Improve the “insurance + futures” model, steadily promote normalized operations, promote more capital participation, and broaden the implementation area according to local conditions. Support the development of agricultural product futures and options varieties. Actively develop rural revitalization corporate bonds, further improve the convenience of review and registration, and support enterprises to issue bonds for modern rural industries, integrated development of rural industries and other fields. Support agricultural science and technology enterprises to become bigger and stronger through the capital market, and research and compile indices that reflect rural revitalization, modern agriculture, animal husbandry and aquaculture and other areas focusing on “agriculture, rural areas and farmers”.
(9) Better meet the diversified investment needs of residents. Promote securities fund operating institutions to accelerate the transformation of wealth management. Enrich the pedigree of public fund products with different risk-return characteristics. Steadily reduce the comprehensive rate of the public fund industry, standardize the fund sales charging mechanism, and guide the conversion of short-term transaction funds into long-term allocation funds. Improve the investment advisory system and rules, promote the pilot transformation of public fund investment and advisory business to routine, explore and build industry practice standards, cultivate and strengthen the talent team, and orderly expand the range of investment products.
5. Promote the capital market to better meet diversified pension financial needs
(10) The goal of stable value-added of medium-and long-term funds such as serving pensions. Implement the “Guiding Opinions on Promoting Medium-and Long-term Funds to Enter the Market” and implementation plans, and open up blockages for medium-and long-term funds such as social security, insurance, and financial management. Promote the inclusion of eligible equity public funds such as index funds into the scope of personal pension investment. Promote and improve the supervision system for equity investment in insurance funds, better encourage and guide insurance companies to carry out long-term equity investment, and expand the scope of pilot projects for long-term stock investment in insurance funds. Support qualified employers to explore liberalize personal options for enterprise annuities, and encourage enterprise annuity fund managers to explore differentiated investments. Support various medium-and long-term funds to carry out hedging transactions in financial futures and derivatives. Promote various professional institutional investors to establish and improve long-term assessment mechanisms for more than three years.
(11) Providing high-quality pension financial products and services. Support the financing of stocks and bonds of qualified economic enterprises such as health and elderly care, and explore the issuance of asset-backed securities and REITs using elderly care facilities and other basic assets. Support public fund management companies to set up subsidiaries specializing in pension financial services. Promote securities fund operating institutions to increase efforts to transform business outlets, service apps, etc. to be aging-friendly. Strengthen the popularization and education of financial knowledge for the elderly and protect the legitimate rights and interests of elderly investors.
6. Accelerate the advancement of digitalization and intelligence to empower the capital market
(12) Improve the digitalization level of the securities and futures industry. Promote the digital transformation of industry institutions. Steadily advance the capital market financial technology innovation pilot and the “data element × capital market” special pilot, and steadily promote the application and implementation of data element related technologies in key areas of the capital market. Improve the functions of the unified query platform for public fund account share information, and steadily promote the pilot optimization of securities company account management functions into routine. Promote the implementation of more “green light” projects for the digital economy and platform corporate stock bond issuance.
(13) Strengthen the construction of securities and futures digital infrastructure. Improve the smart supervision platform. We will further promote the construction of supervision of big data warehouses and industry basic databases, optimize and improve industry data standards, open up data islands, continue to carry out data governance actions, and improve data service capabilities. Accelerate the intelligent transformation of supervision, strengthen system interoperability, strengthen cross-department data and information sharing, and further improve regulatory efficiency and risk identification and prevention capabilities. Strengthen information security management and continue to improve the independent security and controllability of technical information in the entire market and industry.
7. Strengthen the service capabilities of industry institutions in the “five major articles” of finance
(14) Improve the positioning and governance of industry institutions. Urge securities and futures operating institutions to correct their business concepts and put functionality first. Guide industry institutions to incorporate the “five major issues” of finance into long-term business development strategies, strengthen the construction of organizational management systems, and make appropriate preferences in internal institutional settings, resource investment, performance evaluation, etc. Guide industry institutions to combine resource endowments such as shareholder characteristics, regional advantages, and talent reserves to do a good job in the “five major issues” of finance according to local conditions. Encourage securities companies, futures companies and other industry institutions to actively participate in the cause of rural revitalization and carry out “one company, one county” paired assistance. Establish and improve the statistical and assessment and evaluation system for the capital market to do a good job in the “five major articles” of finance, and improve the classified evaluation index system for institutions in industries such as serving scientific and technological innovation and information technology investment. Cultivate a good industry culture and strengthen the construction of talent teams in the capital market.
(15) Strengthen compliance management and risk prevention and control. Urge industry organizations to firmly establish the concept of “compliance creates value”, implement comprehensive risk management and compliance management requirements for all employees, adhere to the principle of “not developing business if you can’t see clearly and cannot control it”, avoid rushing into action, and strictly guard against “pseudo-innovation” and “chaotic innovation”. In response to the risk characteristics in different areas of the “five major articles” of finance, explore the establishment of a hard restraint system for early risk correction, and urge industry institutions to improve risk identification, monitoring and early warning, and stress testing mechanisms.
8. Enhance the joint efforts of the capital market to do a good job in the “five major issues” of finance
(16) Improve the working mechanism. Strengthen coordination and cooperation with relevant departments and local governments, do a good job in overall coordination of policy research and formulation, continue to promote the improvement of the capital market’s legal system and policy system for doing a good job in the “five major articles” of finance, and urge the implementation of various measures. Effectively give full play to the subjective initiative of all aspects and steadily do a good job in the research and promotion of innovative measures.
(17) Coordinate risk prevention and strengthen supervision. Strengthen risk monitoring, early warning and early correction, achieve early identification, early warning, early exposure, and early disposal of possible risks, improve risk assessment and feedback improvement mechanisms for innovative activities, and maintain the smooth operation of the capital market. Adhere to the main responsibility and main business of supervision, strictly crack down on all types of illegal activities committed in the name of the “five major articles” of finance, strictly prevent turning from reality into reality, self-entertainment, and effectively protect the legitimate rights and interests of investors.
(18) Strengthen publicity and guidance. Focusing on the capital market to better serve the development of new productive forces, we will strengthen the capital market to publicize and interpret major financial reforms and important policies, and strive to create a good public opinion environment. Carry out various forms of publicity and education activities to strengthen investor education. Summarize experience and practices in a timely manner, and increase publicity and promotion of typical practices and demonstration cases. Dynamically evaluate policy effects and optimize relevant measures and arrangements in a timely manner.
China Securities Regulatory Commission
February 7, 2025
Zhou Xiaozhou, spokesperson of the China Securities Regulatory Commission, answered questions from reporters on the “Implementation Opinions on the Five Major Articles on Capital Markets to Do a Good Job in Finance”
On February 7, the China Securities Regulatory Commission issued the “Implementation Opinions on the Five Major Articles” of Capital Markets for Doing a Good Job in Finance “(hereinafter referred to as the” Implementation Opinions “). Zhou Xiaozhou, spokesperson of the China Securities Regulatory Commission, answered questions from reporters on the “Implementation Opinions”.
1. Question: What is the background for the promulgation of the Implementation Opinions? What work has the capital market carried out to do a good job in the “five major articles” of finance?
Answer: The Central Financial Work Conference proposed to do a good job in five major topics: science and technology finance, green finance, inclusive finance, pension finance, and digital finance. The Third Plenary Session of the 20th CPC Central Committee once again emphasized the need to actively develop science and technology finance, green finance, inclusive finance, pension finance, and digital finance, and strengthen high-quality financial services for major strategies, key areas, and weak links. The new “National Nine Articles” also put forward clear requirements for doing a good job in the “five major articles” of finance.
The capital market has unique advantages in sharing innovation risks and promoting the formation of innovative capital. Doing a good job in the “five major articles” of finance is not only the responsibility of serving the real economy, but also the inherent requirement for the high-quality development of the capital market itself. In recent years, the China Securities Regulatory Commission has thoroughly implemented the decisions and arrangements of the Party Central Committee and the State Council, continued to strengthen its efforts in doing a good job in the “five major issues” of finance, accelerated the construction of a diversified and inclusive issuance and listing system, further utilized the functional role of the capital market, and increased support for key areas such as scientific and technological innovation, green and low-carbon, and inclusive people’s livelihood to serve high-quality economic and social development. In 2024, the China Securities Regulatory Commission will focus on doing a good job in science and technology finance, and has successively issued and implemented policy documents such as “Sixteen Science and Technology Articles”,”Eight Science and Technology Innovation Board Articles” and “Six Mergers and Acquisitions” to continuously improve the regulatory system and market ecology that support scientific and technological innovation. First, actively support the innovative development of technology-based enterprises. A number of “hard technology” companies in key core technology research fields have successively landed on the A-share market. Some of them have achieved technological breakthroughs and leapfrog development after listing, forming industrial agglomeration effects in fields such as integrated circuits, biomedicine, and high-end equipment manufacturing. Effectively promoted the in-depth integration of capital, industry, technology, and talents. As of now, the proportion of high-tech enterprises listed on the Science and Technology Innovation Board, GEM, and Beijing Stock Exchange exceeds 90%, and the number of listed companies in strategic emerging industries in the entire market accounts for more than half. The second is to improve the adaptability of the M & A and reorganization system to listed companies in developing new productivity. In the second half of 2024, the market activity of mergers and acquisitions has increased significantly. The enthusiasm of listed companies to transform and upgrade through mergers and acquisitions, industrial integration and search for a second growth curve has increased significantly. In particular, M & A and reorganization activities in hard technology industries such as integrated circuits have increased significantly. Landmark cases such as the acquisition of unprofitable technological assets and “A and H” have been successfully implemented. The third is to gradually build a market ecosystem that guides private equity venture capital funds to “invest early, invest small, invest long-term, and invest hard technology.” In recent years, the proportion of private equity venture capital funds invested in strategic emerging industries such as semiconductors, new energy, and biomedicine has continued to increase. Currently, there are more than 100,000 investment projects, and the principal invested exceeds 4 trillion yuan. Fourth, the scientific and technological innovation corporate bond pilot has turned to routine and moved towards high-quality development. Since the pilot of science and technology innovation bonds, a total of 1.2 trillion yuan has been issued. The funds raised have been mainly invested in cutting-edge fields such as semiconductors, artificial intelligence, new energy, and high-end manufacturing. Systems and mechanisms such as review and registration, and financing guarantees have been continuously improved.
At the same time, the capital market has also achieved positive results in green finance, inclusive finance, pension finance, digital finance, etc. In terms of green finance, it guides stock exchanges to issue and implement rules on the information disclosure system for sustainable development reports of listed companies, and systematically standardizes the requirements for sustainable development information disclosure. As of the end of 2024, more than 2200 listed companies have disclosed ESG reports or social responsibility reports, a year-on-year increase. More than 20%, further demonstrating the investment value of high-quality companies. Green corporate bonds have a strong momentum of development, with a total of approximately 870 billion yuan issued since the pilot. Institutional rules and technical standards have continued to improve, and innovative varieties such as carbon-neutral bonds, low-carbon transition bonds, and blue bonds have continued to emerge. Green theme funds are developing rapidly. As of the end of 2024, there are 350 funds worth more than 310 billion yuan. They cover topics such as ESG, low-carbon, new energy, and climate change, and cover major categories of assets such as stocks and bonds. Green and low-carbon futures varieties such as low-sulfur fuel oil, industrial silicon, and lithium carbonate have been listed one after another and are welcomed by entities. In terms of inclusive finance, we will carry out pilot projects for inclusive finance, establish and improve a cooperation and docking mechanism between the national stock transfer system and the regional equity market, facilitate the listing of small and medium-sized enterprises such as specialized, specialized, specialized and innovative enterprises on the New Third Board, and promote industry institutions to increase investment in inclusive finance business and services to small, medium and micro enterprises through institutional arrangements such as assessment and evaluation. “Insurance + Futures” provides risk management and price guarantee for farmers through the futures market. It has been running smoothly for ten years, covering more than 20 agriculture-related varieties, benefiting more than 7 million farmers in 31 provinces (autonomous regions and municipalities directly under the Central Government) across the country. Hainan Baisha Natural Rubber and Shaanxi Huangling Apple Project have been rated as the best cases of poverty reduction in the world. In terms of pension finance, the Central Financial Office and China Securities Regulatory Commission jointly issued the “Guiding Opinions on Promoting Medium-and Long-term Funds to Enter the Market.” Six departments including the Central Financial Office and China Securities Regulatory Commission jointly issued the “Implementation Plan on Promoting Medium-and Long-term Funds to Enter the Market” to improve the supporting policy and institutional system of various medium-and long-term funds to enter the market, such as pensions, and promote the positive interaction between stable returns on pensions and stable operation of the capital market. In December 2024, the Ministry of Human Resources and Social Security and other five departments jointly issued a document to expand the personal pension system to the whole country. Investment targets such as publicly offered FOF funds and publicly offered index funds that operate safely, are mature and stable, have standardized targets, and focus on long-term value preservation will be included in the personal pension product catalog. As of the end of 2024, nearly 300 funds have been included. The public fund industry has been entrusted to manage various pension assets exceeding 6 trillion yuan. In terms of digital finance, we have steadily promoted the technological self-reliance and self-reliance of the securities and futures industry, launched a special pilot of “Data Elements × Capital Market”, released the first batch of 11 pilot projects, steadily promoted the application and implementation of relevant technologies in the capital market, empowered the digital transformation of the industry, and at the same time coordinated Strengthen data security. Actively explore the application of new technologies such as artificial intelligence and large models in the capital market, implement and verify large model technology in application scenarios such as intelligent public opinion and financial report analysis, and coordinate to promote the joint construction and sharing of artificial intelligence application bases in the capital market.
Recently, on the basis of preliminary work, the China Securities Regulatory Commission has further carried out comprehensive and in-depth research and formulated the “Implementation Opinions”, aiming to make systematic arrangements and clear requirements for the “five major issues” of doing a good job in finance in the capital market, strengthen policy coordination and work coordination, and provide higher-quality products and services for major strategies, key areas, and weak links of economic and social development.
2. Question: What are the main contents of the Implementation Opinions?
Answer: The “Implementation Opinions” are divided into 8 parts and 18 measures.
The first part is the overall requirements, which clarifies the guiding ideology and basic principles for the capital market to do a good job in finance, emphasizing the need to focus on building systems and mechanisms that support comprehensive innovation and serve the development of new quality productivity, and enhance the inclusiveness and adaptability of the capital market system. Sex, strengthen the functions of the capital market in promoting the formation of innovative capital, optimizing resource allocation, etc., and help China modernization. In the process, we must grasp the four principles, adhere to political leadership and serve the overall situation, adhere to problem-oriented and precise policies, adhere to integrity and innovation, seek progress while maintaining stability, and adhere to system integration and coordination.
The second part is to strengthen financial services for the entire chain and life cycle of technology-based enterprises. General Secretary Xi Jinping emphasized at the Central Financial Work Conference that we should make overall use of equity, creditor’s rights, insurance and other means to provide full-chain and full-life-cycle financial services for technology-based enterprises. The “Implementation Opinions” propose specific measures around all aspects of the capital market serving technology-based enterprises. The first is to support the issuance and listing of high-quality technology-based enterprises, continue to promote the implementation of a package of policies and measures such as the “Sixteen Science and Technology Articles” and “Eight Science and Technology Innovation Board Articles”, enhance the inclusiveness of new industries, new business formats and new technologies, and guide technology-based enterprises to make rational use of domestic and overseas listings “two markets and two resources”. The second is to optimize the M & A, reorganization, equity incentive and other systems of technology-based listed companies, implement the “Six Points for M & A”, and support listed companies in implementing M & A and reorganization around industrial transformation and upgrading, and strengthening and replenishing chains. The third is to guide private equity venture capital funds to invest early, small, long-term, and hard technology, smooth diversified exit channels, broaden funding sources, and promote a virtuous cycle of “fundraising, investment, management and withdrawal”. The fourth is to increase the multi-level bond market’s support for technological innovation, optimize the issuance and registration process of science and technology innovation bonds, and support the issuance of real estate investment trusts (REITs) for projects in new infrastructure and other fields.
The third to sixth parts propose specific measures around green finance, inclusive finance, pension finance, and technology finance respectively. The first is to enrich the product institutional system of the capital market to promote green and low-carbon transformation. Improve standard systems such as green bonds and sustainable information disclosure, support green industry stock and bond financing, and develop more green futures and options. The second is to improve the efficiency of the capital market in serving inclusive finance. Implement the State Council’s policy arrangements on promoting high-quality development of inclusive finance, improve the institutional arrangements for the capital market to serve small, medium and micro enterprises, enrich the ways of serving agriculture-related entities, and better meet the diversified investment needs of residents. The third is to promote the capital market to better meet diversified pension financial needs. Open up obstacles for medium-and long-term funds such as social security, insurance, and financial management to enter the market, and support stock and bond financing of silver economic enterprises. The fourth is to accelerate the advancement of digitalization and intelligence to empower the capital market. Promote the digital transformation of industry institutions, strengthen digital infrastructure construction and intelligent transformation of supervision.
The seventh part is to strengthen the financial service capabilities of industry institutions, urge securities and futures operating institutions to improve positioning and governance, and strengthen compliance management and risk prevention and control. The eighth part is to enhance the joint efforts of the capital market to do a good job in the “five major issues” of finance, strengthen coordination and cooperation with relevant departments and local governments, coordinate risk prevention, strengthen supervision, and promote high-quality development, and create a good public opinion environment.
3. Question: What are the main policy considerations in the “Implementation Opinions” focusing on further comprehensively deepening capital market reform?
Answer: The Third Plenary Session of the 20th Central Committee of the Communist Party of China made systematic arrangements for further comprehensive deepening of the reform of the capital market. The Central Economic Work Conference clearly proposed to deepen the comprehensive reform of investment and financing in the capital market, open up medium-and long-term capital entry blockages, and enhance the inclusiveness and adaptability of the capital market system. The China Securities Regulatory Commission is deeply studying and implementing the spirit of the Third Plenary Session of the CPC Central Committee and the Central Financial Work Conference, continuing to promote the implementation of the new “Nine National Articles” and the “1+N” policy system of the capital market, adhering to the direction of marketization and legalization, accelerating the new round of capital market reform and opening up, and promoting the implementation of various tasks such as risk prevention, strengthening supervision, and promoting high-quality development.
The “Implementation Opinions” are an important part of the “1+N” policy system of the capital market and an important measure for the capital market to further comprehensively deepen reforms. The “Implementation Opinions” insist on using reform thinking and methods, focus on key and difficult issues in the “five major articles”, and combine the implementation of deployment requirements such as deepening the comprehensive reform of capital market investment and financing, and study and propose more targeted and actionable policy measures. There are the following aspects. The first is to focus on serving scientific and technological innovation and the development of new productive forces, and enhance the inclusiveness and adaptability of the capital market system. Including: further improving the institutional mechanism for accurately identifying technology-based enterprises and supporting the listing of high-quality unprofitable technology-based enterprises; improving the information disclosure rules for technology-based enterprises; optimizing the issuance and underwriting mechanism of new shares and expanding the scope of application of the pilot issuance and underwriting system in a timely manner; taking multiple measures to activate the M & A reorganization market, optimizing M & A reorganization valuation, payment tools and other mechanism arrangements, etc. The second is to increase the intensity of investment-side reforms. Including: implementing the “Guiding Opinions on Promoting Medium-and Long-term Funds to Market into the Market” and implementation plans to open up blockages for medium-and long-term funds to enter the market; steadily reducing the comprehensive premium rate of the public fund industry and improving the investment advisory system and rules; promoting pensions, insurance funds, etc. Reasonably expand the scope of investment, and promote various professional institutional investors to establish and improve long-term assessment mechanisms for more than three years, etc. The third is to develop diversified equity financing and multi-level bond markets. This is a clear task put forward by the Third Plenary Session of the 20th CPC Central Committee. The “Implementation Opinions” make various arrangements around improving and improving the multi-level capital market system. Including: Promote the virtuous cycle of “offering, investment, management and withdrawal” of private equity venture capital funds, promote the optimization of the “reverse linkage” policy for fund exit and the pilot of physical distribution of stocks, study and improve the fund unit transfer mechanism, and develop private equity secondary market funds (S funds); Deeply promote the Beijing Stock Exchange and the New Third Board inclusive financial pilot, and improve the comprehensive services of “specialized, specialized, innovative” special board in the regional equity market; Promote the high-quality development of technological innovation corporate bonds, explore intellectual property asset securitization business, develop green bonds, green asset-backed securities, rural revitalization bonds, etc.
4. Question: What work arrangements does the China Securities Regulatory Commission have for promoting the implementation of the Implementation Opinions?
Answer: The “Implementation Opinions” are an important institutional arrangement to promote the detailed implementation of the “five major articles” of finance in the capital market. The China Securities Regulatory Commission will formulate a detailed implementation work plan to effectively implement various policies and measures. The first is to improve the working mechanism, strengthen coordination and cooperation with relevant departments and local governments, work together to promote the implementation of various tasks, jointly carry out policy publicity and public opinion guidance, and actively respond to market concerns. The second is to consolidate the responsibilities of industry institutions, give full play to the “baton” role of assessment and evaluation, urge securities and futures operating institutions to correct their business concepts, strengthen organizational management and resource investment, and do a good job in the “five major issues” of finance according to local conditions. The third is to coordinate development and security, strengthen risk monitoring, early warning and early correction, strictly crack down on various illegal activities committed in the name of the “five major articles” of finance, and effectively protect the legitimate rights and interests of investors.
