From February 18th to 19th, at the beginning of the Spring Festival work period, the China Securities Regulatory Commission (CSRC) convened a series of symposiums to widely listen to opinions and suggestions from all sides on strengthening the supervision of the capital market, preventing and resolving risks, and promoting the high-quality development of the capital market. First Financial Daily reporters learned that there were more than 10 symposiums, presided over by the Party Secretary and Chairman Wu Qing of the CSRC and other leading members respectively.

"The capital market involves all aspects, and the more complex and severe the situation is, the more we need to open up channels for discussion, gather ideas, and build consensus," said the CSRC official at the meeting. The current CSRC is earnestly implementing a series of important deployments by the Party Central Committee and the State Council on the capital market, and is deeply advancing the work of strengthening supervision, preventing risks, and promoting development.

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Reporters learned that representatives from various aspects, including experts and scholars, small and medium investors, listed companies, companies planning to go public, securities and fund management institutions, accounting and law firms, private equity institutions, and foreign institutions, all participated in the discussions. The topics ranged from IPO, listed company supervision, standardized share reduction, optimization of dividends, standardized trading behavior, to enhancing investment value, optimizing market value management, strengthening the strength of professional institutions, promoting long-term capital into the market, to delisting, and issues of openness and security, covering a comprehensive range.

"The opinions raised by the representatives at the meeting were very straightforward and to the point," a participant told First Financial Daily after the meeting. The symposiums were presided over by the Chairman of the CSRC and the leadership team members, with two of them chaired by Wu Qing.

Intensive research and listening to market suggestions

"Everyone is very concerned about the reform ideas of the newly appointed Chairman Wu Qing, but the symposiums were mainly focused on listening to everyone's opinions and suggestions," the aforementioned participant told the reporter.

On February 7th, the Chairman of the CSRC completed the change of office, with Wu Qing coming from Shanghai to Beijing to become the 10th Chairman of the CSRC.

Wu Qing has served as an official in the Comprehensive Department of the State Planning Commission, a deputy director and director, an official in the office of the State Council Securities Committee, and later as the Deputy Director, Director, and Head of the Institutional Department of the CSRC, the Director of the Securities Company Risk Disposal Office, and the Director of the Fund Supervision Department.

He served as the Chairman and Party Secretary of the Shanghai Stock Exchange from May 2016 to December 2017, and later as a member of the Shanghai Municipal Government Party Group, Deputy Mayor of Shanghai, and concurrently as the Director of the Office for Promoting the Construction of the Shanghai Science and Technology Innovation Center, and the Director of the Management Committee of the Zhangjiang High-Tech Industrial Development Zone in Shanghai, with profound experience in enterprise development and capital market construction. Wu Qing is also considered the first chairman from within the securities regulatory system, and the market has high expectations for his reform ideas after taking office.

The CSRC stated that at the symposium, the participants focused on in-depth discussions on hot issues of current market concern and institutional and policy issues that restrict the long-term development of the capital market, and put forward valuable opinions and suggestions.Include suggestions to strictly control the IPO admission threshold, strengthen the whole process supervision of listed companies, resolutely clear out unqualified listed companies, fundamentally improve the quality of listed companies, and increase investment returns. Adhere to the concept of investor-oriented, standardize various trading behaviors, and enhance the fairness of the system. Develop and strengthen professional investment forces, and promote more medium and long-term funds to enter the market. Adhere to the direction of marketization and legalization, unswervingly deepen the reform of the capital market, expand institutional openness, and consolidate the institutional foundation for the high-quality development of the capital market.

At the same time, the representative also suggested further increasing the punishment for various securities illegal and criminal acts, forming more exemplary cases, effectively protecting the legitimate rights and interests of investors, especially small and medium investors, and maintaining a fair and just market order.

In response to the market's suggestions and opinions, the Securities Regulatory Commission (CSRC) stated that it will take seriously suggestions and opinions from all aspects, including critical opinions. Those that are feasible after verification will be implemented immediately, and those that do not have the conditions at the moment will be well communicated and explained, responding to market concerns in a timely manner, and relying on the joint efforts of all parties to build and develop the capital market well.

Problem-oriented, enhance the investment value of listed companies

Looking back at the regulatory trends since last year, it can be observed that in order to increase market activity and boost investor confidence, the CSRC has been conducting intensive research, sorting out system rules, identifying problems, and carrying out targeted reforms and improvements.

The aforementioned participant told the reporter that at the symposium, many participants suggested that the IPO should first focus on quality and provide investors with high-quality investment targets.

The reporter learned that the CSRC is evaluating and summarizing the practice of issuance supervision work in recent years, focusing more on strictly controlling the IPO admission threshold, improving the quality of listed companies from the source, and studying and improving relevant policy mechanisms. The focus is to highlight the control of the entire chain of issuance and listing review and supervision. The CSRC, stock exchanges, and dispatched institutions will all strengthen the supervision of issuance and listing, and hold the issuers and intermediaries accountable as the "gatekeepers". It is likely that the supervision and inspection of companies planning to go public will be further increased, and financial fraud will be vigorously rectified, forming a more powerful deterrent to "sick" companies trying to pass the threshold, forcing issuers to improve the quality of their applications and intermediaries to improve their professional standards.

In terms of the supervision of listed companies, some participants suggested that the quality of some listed companies is not high, and some even have impure purposes for listing, with the aim of "raising money" and "cashing out", which seriously affects investor confidence and must be severely cracked down on. Suggestions for improving the systems of shareholding reduction and dividends were also made, hoping to pay more attention to fairness and strengthen the protection of the rights and interests of small and medium investors.

In response to these issues, the CSRC has previously issued special documents to improve the quality of listed companies and is currently focusing on issues of market concern such as punishing financial fraud, combating illegal shareholding reduction, improving dividend returns, and strengthening market value management for further research, striving to better enhance investor confidence and enhance the sense of gain for investors.

It is understood that in addition to promoting the quality of listed companies, the representatives at the meeting also focused on other institutional and policy issues that constrain the long-term development of the capital market for in-depth discussion, suggesting to adhere to the direction of marketization and legalization, unswervingly deepen the reform of the capital market, expand institutional openness, and consolidate the institutional foundation for the high-quality development of the capital market. From the work trends of the regulatory authorities, continuing to introduce targeted measures through deepening reform and opening up to solve outstanding problems is also a key focus for the next step.Highlight the strength of professional institutions, enhance the capabilities of securities firms and public funds

"Around the Spring Festival, the research and sorting out work has never stopped," a person close to the regulatory authorities told the reporter. Stabilizing the market and confidence requires communication with the market and coordination among all parties. Securities firms, public funds, as well as private equity, foreign capital, and other professional institutions, all need to accurately position their functions and play a role in stabilizing the market and confidence in the implementation of policies.

The aforementioned participant at the meeting told the reporter that industry institutions expressed at the symposium that they will deeply study and understand the spirit of the central financial work meeting, correct business philosophy, focus on their main business, optimize structure, and strive to enhance their ability to serve the real economy and investors.

According to the reporter from Yicai, in order to further standardize the development of industry institutions and encourage them to better play a market role, the China Securities Regulatory Commission (CSRC) is currently studying and improving the regulatory model of industry institutions, perfecting the institutional system in terms of institutions, personnel, and business, and strengthening the compliance and risk control requirements of institutions. At the same time, the regulatory incentive and restraint mechanism will be improved, highlighting the reward for the excellent and punishment for the poor, and promoting the capability enhancement of securities companies and public funds.

At present, public funds have become an important way for residents to invest in the stock market. However, since last year, many investors have not been satisfied with the return rate of public funds, including the hope that public funds will strengthen the construction of core capabilities in public fund investment research, abandon the phenomenon of star fund managers, improve the construction of the investment research system, and further reduce the fee level to better serve investors.

The reporter learned that the CSRC will accelerate the registration pace of equity products, further enrich the supply of broad-based index fund products and corresponding option products, and at the same time strengthen coordination with relevant departments to promote the introduction of more medium and long-term funds into the market. It will urge public funds and other investment institutions to fulfill their entrusted responsibilities, enhance their professional capabilities, and better serve the preservation and appreciation of residents' wealth.