The latest announcement of the China Securities Regulatory Commission’s five major reforms in the second half of the year!Strengthen the linkage of commodity futures and spot supervision services to ensure supply and price stabilization

Yesterday, the China Securities Regulatory Commission held the 2021 System Mid-year Supervision Work Conference to analyze the current situation and study and deploy five key tasks in the next phase. Secretary of the Party Committee and Chairman of the China Securities Regulatory Commission, Yi Huiman, delivered a report entitled “Insisting on Stability, Deepening Reform and Opening Up, and Further Promoting High-Quality Development of Capital Markets” at the meeting.

The main points of the meeting are as follows:

1. Strengthen supervision and coordination, strictly control the entry of capital market, and promote the healthy development of various types of capital.

2. Insist on putting strict supervision, prevention of risks, and promotion of stability in a more prominent position.

3. Unswervingly expand opening up, promote reform and development through opening up, and serve the construction of a new high-level open economic system.

4. The reform of the registration system has entered a critical period of advancement, and it is necessary to continue to make solid and meticulous preparations.

5. Coordinate development and security, steadily introduce policies and measures to further expand the opening of the capital market, and actively strengthen the construction of supervisory capacity under open conditions.

6. Deepen the interconnection between the mainland and Hong Kong markets, and firmly support the stable development of the Hong Kong capital market.

7. Resolutely investigate and handle cases of financial fraud, capital occupation, illegal guarantees and market manipulation, insider trading and other violations of laws and regulations, and comprehensively improve the quality and effectiveness of the investigation and handling of major cases.

8. Continue to resolve private equity in a stable and orderly mannerFund, Bond default and other key areas of risk.

  Taking the pulse of the current situation: There are many favorable conditions to promote the steady development of the capital market

The meeting pointed out that since the beginning of this year, in the face of the complex and severe external environment, the CSRC system has conscientiously implemented the major decisions and deployments of the Party Central Committee and the State Council. Under the unified command and coordination of the Financial Committee of the State Council, it will concentrate on reforms, seek development, and promote stability without slackening. Preventing risks, strong supervision, superior order, high quality and high standards to promote systematic party building, and a good start to the “14th Five-Year Plan” of the capital market to welcome the 100th anniversary of the founding of the party.

Specifically, the first is to carry out party history learning and education, and implement the general requirements of “learning party history, understanding ideas, doing practical things, and opening new games” and “learning history to be clear, learning history to increase credit, learning history to respect morals, and learning history to practice”, and meticulously Organize and carry out multi-level, full-coverage learning and education, further enhance the “four consciousnesses” in learning theories, understanding ideas, and doing practical things, strengthen the “four self-confidence”, and practice the “two safeguards”.

The second is to build a new development pattern closely with services, and fully support the high-quality development of the real economy. Strengthen the “hard technology” positioning of the Science and Technology Innovation Board, enhance the service function of the ChiNext for growth-oriented innovation and entrepreneurial enterprises, and guide the accumulation of element resources in the field of scientific and technological innovation. Strengthen the joint supervision of commodity futures and cash to ensure the overall situation of service supply and price stability.

The third is to steadily and steadily advance the comprehensive deepening of reform and opening up of the capital market. Advance the preparations for the full implementation of the registration system for stock issuance in an orderly manner. Smoothly implement the merger of Shenzhen’s main board and small and medium-sized board. The pilot project of public offering REITs in the field of infrastructure was successfully implemented. The normalized delisting mechanism is accelerating its formation. The opening up of the capital market is progressing steadily.

Fourth, continue to consolidate the effectiveness of major risk prevention and resolution battles. The stock market, bond market, and futures market generally maintained stable operations, and the effectiveness of risk mitigation and disposal in key areas such as private equity funds and bond defaults continued to be consolidated.

The fifth is to strengthen the “zero tolerance” law enforcement deterrence. Implement the “Opinions on Strictly Cracking Down on Securities Illegal Activities According to Law” by the Central Office and the State Council, accelerate the establishment of a sound securities law enforcement judicial system and continue to strengthen the punishment of major cases, and the first special representative lawsuit for securities disputes has entered the formal trial stage.

Sixth, comprehensively strengthen the building of the systematic party. Work with the Discipline Inspection and Supervision Team of the China Securities Regulatory Commission in the same direction and cooperate with each other to further promote the comprehensive and strict governance of the party and the construction of party style and clean government, strengthen the construction of the cadre team, and continue to create a good political ecology.

The meeting held that the current global epidemic is still evolving and the external environment is becoming more severe and complex. However, the domestic economy has continued to recover, stabilized and strengthened, and the development trend has not changed. There are many favorable conditions for promoting the stable development of the capital market.

  The “Five Musts” continue to create a new situation for the high-quality development of the capital market

The meeting emphasized that the whole system must effectively unify its thoughts and actions with the central government’s scientific judgment and decision-making deployment of the situation, strive to grasp new changes and new trends, strengthen confidence, maintain determination, and insist on “high quality” throughout the “14th Five-Year Plan”. The main line of the reform and development of the capital market during the period is to adhere to the principle of seeking progress while maintaining stability, insisting on “building a system, non-intervention, and zero tolerance”, unswervingly promoting the transformation of development methods, and constantly creating a new situation for the high-quality development of the capital market.

First, the new development concept must be implemented completely, accurately and comprehensively. Consciously care about the “bigger of the country”, continue to improve the capital market services to build a new development pattern, and strive to achieve greater results in supporting scientific and technological self-reliance and promoting green and low-carbon transformation, and strive to improve the balance and coordination of development Greater results have been achieved in terms of sexual inclusiveness. Strengthen supervision and coordination, strictly control the entrance of capital market, and promote the healthy development of various types of capital.

Second, we must coordinate the relationship between total volume, structure and efficiency. Adhere to the organic unity of scale and structure, speed and quality, development and safety, pay more attention to the quality and structure of companies to be listed, and maintain the normalization of IPOs in a scientific and reasonable manner. Pay more attention to the improvement of industry professional capabilities, the optimization of product business structure and the cultivation of good investment concepts, and promote the high-quality development of the securities and fund industry.

Third, we must insist on putting strict supervision, preventing risks, and promoting stability in a more prominent position. The concept of strict supervision according to law is applied to all lines and fields of the capital market. We will make overall plans for the prevention and resolution of risks in key areas, maintain timely, efficient, stable and orderly risk handling, strive to stay ahead of the market curve, and firmly hold the bottom line of preventing systemic regional risks from occurring.

Fourth, efforts must be made to build an ecological system of conscientiousness and benign interaction. Respect the laws of the market, balance the responsibilities and rights of all participants in the market, so that those who do bad things will be punished, and those who do things according to the rules will be motivated. Strengthen the stability, continuity and predictability of policies, promote all parties to adhere to the basic norms of the market economy, such as the rule of law, integrity, and the spirit of contract, and earnestly maintain the “three public” order of the market.

Fifth, it is necessary to fully reflect the unity of drawing on international best practices and based on national conditions and market conditions. Unswervingly expand opening up, promote reform and development through opening up, and serve the construction of a new high-level open economic system. Based on the characteristics of Chinese characteristics and development stages, we should better integrate the general laws of capital market development with China’s reality, and strive to build a standardized, transparent, open, dynamic, and resilient capital market.

  Five areas to deploy key tasks for capital market development in the second half of the year

For the key tasks of capital market development in the second half of the year, the meeting also made five arrangements.

Specifically, the first is to lay a solid foundation for the reform of the market-wide registration system. The registration system reform has entered a critical period of advancement, and we must continue to make solid and meticulous preparations. Focus on advancing the reform and optimization of the issuance pricing mechanism, improving the quality of prospectus disclosure, further clarifying the responsibilities of intermediaries, and improving the system and mechanism to prevent corruption risks. Further deepen the reform of the new three board, and strive to improve the ability and level of serving “specialized, special-new” small and medium-sized enterprises.

The second is to unswervingly promote the institutional opening of the capital market. Coordinate development and security, steadily introduce policies and measures to further expand the opening of the capital market, and actively strengthen the construction of regulatory capacity under open conditions. Create conditions to promote China-US audit supervision cooperation, strengthen market communication, and stabilize policy expectations and the institutional environment. Deepen the interconnection between the Mainland and Hong Kong markets, and firmly support the stable development of the Hong Kong capital market.

The third is to fully implement the “zero tolerance” policy and further improve the market development ecology. Give full play to the role of the coordinating working group for cracking down on illegal activities in the capital market, resolutely investigate and handle financial fraud, capital occupation, illegal guarantees and market manipulation, insider trading and other illegal and illegal cases, and comprehensively improve the quality and effectiveness of the investigation and handling of major cases. Deepen the establishment of the rule of law and investor protection, and promote the normalization of litigation by special representatives of securities disputes. We will maintain the “import” and “export” and corporate governance, and continue to promote the improvement of the quality of listed companies.Effectively strengthen industry institutionsShareholdersSupervise and promote the improvement of governance effectiveness. Strengthen the construction of scientific and technological supervision and improve the level of digital and intelligent supervision.

The fourth is to resolutely win the protracted battle to prevent and resolve major financial risks. Strengthen macroscopic research and judgment, strengthen the prevention and resolution of spillover, import and cross-over risks, put more emphasis on stabilizing expectations, improve information communication and policy coordination mechanisms, prevent secondary financial risks in the process of handling risks in other areas, and strive to maintain market stability Run. Continue to resolve risks in key areas such as private equity funds and bond defaults in a steady and orderly manner. Improve the public opinion guidance mechanism of the capital market and actively create a good external environment.

The fifth is to comprehensively improve the quality of party building in the system and provide a strong political guarantee for the high-quality development of the capital market. Intensify the study and education of party history, further study and understand the spirit of the important “July 1” speech, and continuously strengthen political judgment, political understanding, and political execution. Further highlight the professional and honest selection and employment orientation, focus on strengthening the supervision of “top leaders”, and build a “loyal and professional” supervisory cadre team. Perseverely promote the systematic and strict governance of the party, and promote the punishment of financial corruption and the prevention and control of financial risks as a whole.

(Source: Futures Daily)

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