to further promote the entry of medium- and long-term funds into the market, measures to promote mergers and acquisitions and restructuring will be issued! the latest statement from the chairman of the china securities regulatory commission
2024-09-24
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the state council information office held a press conference on the 24th to introduce the relevant situation of financial support for high-quality economic development. wu qing, chairman of the china securities regulatory commission, said at the meeting that the investment and operation of medium- and long-term funds are highly specialized and stable, which is of great significance for overcoming short-term market fluctuations and playing the role of "stabilizer" and "ballast stone" of the capital market.
wu qing said that in recent years, the china securities regulatory commission has vigorously promoted the development of equity-based public funds, and has worked with relevant parties to continuously promote the entry of medium- and long-term funds into the market, and has achieved some phased results. by the end of august this year, professional institutional investors such as equity-based public funds, insurance funds, and various pension funds held a total of nearly 15 trillion yuan in a-share market value, more than doubled from the beginning of 2019, and the proportion of a-share market value increased from 17% to 22.2%. among them, the national social security fund is very prominent. since its establishment, the national social security fund has achieved an average annualized return of more than 10% on its investment in the domestic stock market, becoming a model of long-term investment and value investment in the a-share market.
the current capital market still faces prominent problems such as insufficient total amount of medium- and long-term funds, poor structure, and insufficient leading role. the institutional environment for "long money and long investment" has not yet been fully formed. in order to implement the spirit of the third plenary session of the 20th cpc central committee and further clear the pain points and bottlenecks of medium- and long-term funds entering the market, the china securities regulatory commission and other relevant departments have recently formulated the "guiding opinions on promoting the entry of medium- and long-term funds into the market" with the strong support of relevant ministries and commissions, which will be issued in the near future. among them, there are a series of arrangements to support the entry of medium- and long-term funds into the market, and it is believed that the institutional environment will continue to be optimized. overall, it focuses on the goal of "more long money, longer long money, and better returns" to further promote the entry of medium- and long-term funds into the market. the "guiding opinions" to be released focus on three measures:
first, vigorously develop equity public funds. the focus is to urge fund companies to further correct their business philosophy, adhere to the investor return orientation, focus on improving investment research and service capabilities, create more products that meet the needs of the people, and strive to create long-term returns for investors. recently, you may have noticed that 10 new csi a500 etfs have been issued, which are very popular in the market and soon reached the fundraising limit. in the next step, the csrc will further optimize the registration of equity fund products, vigorously promote the innovation of index products such as broad-based etfs, and launch more small and medium-sized etf fund products including gem and sci-tech innovation board in a timely manner to better serve investors and better serve national strategies and the development of new quality productivity. in addition, the csrc will promote the public fund industry to steadily reduce the comprehensive fee rate, which is also a problem that has been discussed more recently. now two steps have been taken, and there is another step behind. by steadily reducing the comprehensive fee rate, investors can be better given benefits and returned to investors.
second, improve the institutional environment for "long-term investment". the focus is to improve the regulatory inclusiveness of medium- and long-term equity investment, and fully implement long-term assessments of more than three years. remove the institutional barriers that affect long-term investment of insurance funds, promote insurance institutions to be firm value investors, and provide stable long-term investment for the capital market. at the same time, guide the multi-level and multi-pillar pension security system to interact with the capital market in a benign manner, improve the national social security fund and basic pension insurance fund investment policy system, and encourage enterprise annuity funds to explore different types of differentiated investments based on the different ages and risk preferences of holders.
third, we will continue to improve the ecology of the capital market. the focus is on taking multiple measures to improve the quality and investment value of listed companies, improving supporting institutional investors' participation in the governance of listed companies, and cracking down on all kinds of illegal and irregular behaviors, so as to create a good market ecology where medium- and long-term funds are "willing to come, stay, and develop well".
wu qing said that in the next step, the csrc will work with relevant ministries and commissions and relevant units to increase the intensity of work promotion to ensure that all measures can be implemented.
● some initial results have been achieved in strengthening capital market supervision and preventing risks
in april this year, the state council issued the new "nine national regulations", and the china securities regulatory commission formulated and revised more than 50 institutional rules, which together with the new "nine national regulations" formed a "1+n" policy and rules system. the capital market has achieved some initial results in strengthening supervision, preventing risks, and promoting high-quality development.
wu qing, chairman of the china securities regulatory commission, introduced that since the beginning of this year, my country's market ecology has further improved. by the end of august, 577 securities and futures violations had been investigated. the basic market system has been improved at a faster pace, and the institutional rules for various links such as issuance and listing, dividends, reduction of holdings, and trading have been optimized. the dividends of listed companies in 2023 reached 2.2 trillion yuan, a record high, and the functions of the bond and futures markets have been steadily exerted. in the first eight months, the exchange bond market issued 8.9 trillion yuan of various bonds, maintaining steady growth.
in the next step, the csrc will focus on enhancing the inherent stability of the capital market, establish a clear orientation of rewarding investors, improve the quality of listed companies and investment value, accelerate reforms on the investment side, and promote the construction of a policy system of "long money and long investment."
wu qing, chairman of the china securities regulatory commission, said that we will issue guidance on promoting the entry of medium- and long-term funds into the market, further improve the policy toolbox, and maintain the bottom line of risk; we will issue six measures to promote mergers and acquisitions and restructuring. at the same time, we will work with all parties to smooth the circulation of "raising funds, investing, managing and withdrawing" of private equity venture capital funds, and resolutely crack down on illegal and irregular activities such as financial fraud and market manipulation.
● promote various medium- and long-term funds such as huijin to invest in the stock market
at the press conference, wu qing talked about central huijin's increase in holdings in the capital market and said that this fully demonstrated the national investment institution's recognition of the capital market and played an important role in stabilizing the market.
wu qing said that recently many investment research institutions at home and abroad believe that the valuation of the a-share market is still at a historical low, and the investment value is still prominent. the china securities regulatory commission will work with relevant parties to further support huijin to increase its holdings and expand the scope of investment, promote various types of medium- and long-term funds including central huijin to invest in the stock market, provide a better environment for medium- and long-term funds to enter the market, further enhance strategic reserve strength, and jointly promote the stable and healthy development of the capital market.
● in terms of supporting mergers and acquisitions and restructuring, regulatory tolerance will be further improved
wu qing said at the press conference that mergers and acquisitions and restructuring are major events in the capital market. especially in the context of the accelerated global industrial transformation, continuing to play a key role in corporate mergers and acquisitions and restructuring will be conducive to improving the quality and efficiency of the industry.
wu qing pointed out that the next step is to vigorously support listed companies to transform and upgrade towards new quality productivity. the csrc will actively support listed companies to carry out mergers and acquisitions around strategic emerging industries and future industries, including cross-industry mergers and acquisitions based on transformation and upgrading, and acquisitions of unprofitable assets to improve key technology levels.
second, we will actively encourage listed companies to strengthen industrial integration. while supporting the development of emerging industries, we will continue to help traditional industries to reasonably improve industrial concentration and resource allocation efficiency through restructuring. we will support the integration needs of listed companies by greatly simplifying the review procedures.
third, further improve the inclusiveness of supervision. while abiding by the rules, the csrc will respect the laws of the market, economy and innovation, and further improve relevant assistance based on actual conditions for matters such as restructuring valuation, performance commitments, competition among peers, and related transactions, so as to better play the role of the market in optimizing resource allocation.
fourth, we will vigorously improve the transaction efficiency of the restructuring market. at present, the payment tools that can be used for restructuring are relatively rich. in addition to cash, there are also shares, convertible bonds, etc. next, the csrc will support listed companies to further improve transaction flexibility and capital utilization efficiency according to the specific needs of transaction arrangements. at the same time, a simplified review procedure for restructuring will be established. for listed companies that meet the requirements for restructuring, the review process will be greatly simplified, the review time will be shortened, and the efficiency of restructuring will be improved.
in addition, an active m&a and restructuring market cannot be separated from the functions of intermediary institutions. the csrc will guide securities companies and other intermediary institutions to further improve their service levels, give full play to their functions such as deal matching and professional services, and help listed companies implement high-quality m&a and restructuring.
wu qing emphasized that the csrc will also perform its regulatory work in accordance with the law, and at the same time crack down on all kinds of illegal and irregular behaviors, effectively maintain the order of the restructuring market, and effectively protect the legitimate rights and interests of small and medium-sized investors.
● public comments will be solicited on the market value management guidelines for listed companies
wu qing stated at the press conference that in the near future, public opinions will be solicited on the guidelines for market value management of listed companies, requiring listed companies to do a good job in market value management.
wu qing pointed out that, first, the board of directors is required to attach great importance to investor protection and investor returns. second, listed companies are required to actively use market value management tools such as mergers and acquisitions, equity incentives, and major shareholders' shareholding increases. third, listed companies are required to establish a regular repurchase mechanism arrangement. fourth, listed companies with long-term negative net assets are required to formulate value enhancement plans. fifth, some major index component companies are required to take responsibility and formulate a good market value management system.
wu qing emphasized that while listed companies strengthen market value management, they must not use the name of market value management to carry out illegal activities such as market manipulation and insider trading.
source: cctv news, xinhua news agency, etc.guangzhou daily new flower city editor: ma junxian
