wu qing: grasp the "three highlights" and promote "long-term funds and long-term investments"
2024-09-26
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the development of the capital market has once again received a series of policy support. wu qing, chairman of the china securities regulatory commission, said at a press conference held by the state council information office on september 24 that the china securities regulatory commission will focus on "three highlights", namely, enhancing the inherent stability of the capital market, serving the recovery of the real economy and high-quality economic development, protecting the legitimate rights and interests of small and medium-sized investors, accelerating investment reforms, promoting the construction of a "long-term money and long-term investment" policy system, focusing on serving key areas such as new quality productivity, taking multiple measures to activate the m&a and restructuring market, and resolutely cracking down on illegal and irregular behaviors such as financial fraud and market manipulation.
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clear the pain points and bottlenecks for medium- and long-term funds to enter the market
where does the money come from? this is the question that the market is most concerned about. "long-term money is indeed very important." wu qing said 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.
in recent years, the china securities regulatory commission has vigorously promoted the development of equity-based public funds and worked with relevant parties to continuously promote the entry of medium- and long-term funds into the market. it is reported that 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%.
wu qing pointed out that the current problems of insufficient total amount of medium- and long-term funds in the capital market, poor structure, and insufficient leading role are still prominent, and the institutional environment of "long-term money and long-term 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 formulated the "guiding opinions on promoting the entry of medium- and long-term funds into the market" (hereinafter referred to as the "guiding opinions"), which will be issued in the near future. among them, there are a series of arrangements for supporting the entry of medium- and long-term funds into the market. the overall goal is to further promote the entry of medium- and long-term funds into the market with a focus on the goal of "more long money, longer long money, and better returns".
according to reports, the guiding opinions to be released soon will 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 ordinary people, and strive to create long-term returns for investors. 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 also promote the public fund industry to steadily reduce the comprehensive fee rate to better benefit and return 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 also said that over the past period of time, central huijin investment co., ltd. has continued to increase its holdings of etfs, which fully reflects the high recognition of the investment value of the a-share market by national investment institutions. many investment institutions and research institutions at home and abroad also believe that the valuation of the a-share market is at a historical low, and the investment value is prominent. the china securities regulatory commission will work with relevant parties to further support central huijin investment co., ltd.'s arrangements to increase its holdings and expand its investment scope, and promote various types of medium- and long-term funds, including central huijin investment co., ltd., to invest in the stock market.
guide listed companies to manage their market value in accordance with the law
listed companies are the foundation of the market and the source of market investment value. improving the quality of listed companies and enhancing investment value are important aspects of capital market reform. according to reports, more than 95% of listed companies have held performance briefings this year, 663 companies have announced interim dividends of 533.7 billion yuan, and more than 1,500 companies have actually implemented share repurchases totaling more than 100 billion yuan.
wu qing said that the china securities regulatory commission actively supports listed companies to improve their operating efficiency and profitability, and the state-owned assets supervision and administration commission of the state council is also increasing the assessment of market value management of central enterprises listed companies in accordance with the "one company, one policy" approach. listed companies must strive to improve the transparency of information disclosure and corporate governance, strengthen communication with investors, and should use a combination of dividends, repurchases and other methods to reward investors.
he revealed that at present, the csrc has worked with relevant ministries and commissions to study and formulate guidelines for market value management of listed companies, requiring listed companies to do a good job in market value management in accordance with the law. first, the board of directors is required to attach great importance to investor protection and investor returns, and to consolidate the foundation of market value management by improving management level, profitability, and core competitiveness. second, listed companies are required to actively use market value management tools such as mergers and acquisitions, equity incentives, and major shareholders' shareholdings to enhance investment value. third, listed companies are required to establish a normalized repurchase mechanism arrangement, and encourage qualified companies to arrange capital planning and reserves in advance. fourth, companies with long-term net losses are required to formulate value enhancement plans, evaluate the implementation effects and disclose them publicly to form market constraints. fifth, major index constituent companies are required to take responsibility, formulate market value management systems, clarify responsibilities and response measures, and disclose implementation status regularly.
wu qing also emphasized that market value management should be strengthened, but at the same time, listed companies and related parties must improve their compliance awareness and must not engage in illegal and irregular activities such as market manipulation and insider trading in the name of market value management.
at the same time, the csrc will also work with relevant ministries and commissions to promote the establishment of a market-based incentive and constraint mechanism for share repurchases by listed companies, stimulate the endogenous motivation of major shareholders, senior executives and other relevant entities of listed companies, and further enhance the investment value of listed companies.
multiple measures to invigorate the m&a and restructuring market
the new "nine national regulations" make important arrangements for the active m&a and restructuring market. "it is a very important function of the capital market to further promote the effective allocation of resources by supporting corporate m&a and restructuring. especially in the context of the accelerated global industrial transformation and the accelerated transformation and upgrading of my country's economic structure, it is urgent to play a key role in corporate m&a and restructuring to help industrial integration and improve quality and efficiency." wu qing said that the csrc has studied and formulated the "opinions on deepening the reform of the m&a and restructuring market of listed companies" (hereinafter referred to as the "opinions") based on extensive research and opinions from all parties in the previous stage.
according to reports, the opinions adhere to the market-oriented direction and better play the main role of the capital market in mergers and acquisitions. the main contents include: first, vigorously support listed companies to transform and upgrade towards new quality productivity. the csrc will actively support listed companies in mergers and acquisitions around strategic emerging industries and future industries, including cross-industry mergers and acquisitions based on transformation and upgrading, as well as acquisitions of unprofitable assets that help to strengthen the supply chain and improve the level of key core technologies, and guide more resource elements to gather towards new quality productivity.
second, actively encourage listed companies to strengthen industrial integration. while supporting the development of new industries, the capital market will continue to help traditional industries to reasonably improve industrial concentration and resource allocation efficiency through restructuring. for the integration needs of listed companies, the csrc will support them by greatly simplifying the review procedures. at the same time, through some arrangements such as "reverse linkage" during the lock-up period, private investment funds are encouraged to actively participate in mergers and acquisitions and restructuring.
third, further improve regulatory tolerance. while further abiding by the rules, the csrc will respect market laws, economic laws, and innovation laws, and further improve tolerance for matters such as restructuring valuation, performance commitments, peer competition, and related transactions based on actual conditions, so as to better play the role of the market in optimizing resource allocation.
fourth, we will make great efforts to improve the transaction efficiency of the restructuring market. currently, 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 adopt payment tools such as installment issuance of shares and convertible bonds, installment payment of transaction consideration, installment matching financing, etc. according to the specific needs of transaction arrangements, so as to further improve transaction flexibility and capital utilization efficiency. at the same time, a simplified restructuring review procedure will be established to greatly simplify the review process, shorten the review time limit, and improve restructuring efficiency for listed companies that meet the conditions.
an active m&a and restructuring market cannot be separated from the function of the intermediary structure. the csrc will also guide securities companies and other intermediary institutions to further improve their service levels, give full play to their functions such as transaction matching and professional services, and help listed companies implement high-quality m&a and restructuring. at the same time, the csrc will also do a good job of supervision in accordance with the law, crack down on all kinds of illegal and irregular behaviors, effectively maintain the order of the restructuring market, carry out restructuring in an orderly manner, and effectively protect the legitimate rights and interests of small and medium-sized investors. (reporter wu lihua beijing report)
