SCIO briefing on maintaining financial market stability during COVID-19 epidemic
0 Comment(s)
Print
E-mail SCIO, March 25, 2020
CRI:
Since last year, with regards to deepening the capital market reform and furthering opening-up, the China Securities Regulatory Commission has introduced many new measures. My question is, against the changing situation in the domestic and global markets, will our work, in particular about the reform on ChiNext, China's NASDAQ-style board of growth enterprises, slow down? Thank you!
Li Chao:
Thank you for your question! In a nutshell, the reform and opening-up of the capital market will not be hindered by the epidemic. In fact, the Chinese capital market was born out of the reform and opening-up, and has experienced a 30-year development. While examining the evolving journey, it can be concluded that the more effective reform and opening-up measures are, the more stable our capital market would become in general with its functions running better; however, in the case of inadequate reform and opening-up moves, problems could crop up. So, those factors are driving the reform and opening-up of the capital market. We should bring the function of the capital market into better play. Those existing weak links and shortcomings are exactly the reason for us to continuously strengthen our reform and opening-up. As for the ChiNext reform, we have conducted research and studies, and also solicited opinions from some groups of people. The reform will focus on the registration-based system; meanwhile, regarding the fundamental institutions involving stock issuance, listing, information disclosure, trading, and delisting, reform moves will be introduced. At present, related work is being carried out in an orderly way. At the same time, according to the 12 key priorities about the capital market reform we set last year, which involve advancing the reform of the registration-based system, improving the quality of listed companies, improving services of financial intermediaries, protecting investors' rights and interests, and creating a favorable environment to facilitate the inflow of mid and long-term capital into the stock market among others, the capital market reform will be advanced significantly and continuously, toward the goal of building a standardized, transparent, open, vigorous, and resilient capital market.
The opening-up here mainly refers to opening the capital market wider and granting more market access. Regarding the former, we are formulating the corresponding rules; we'll steadily expand the scope for investment. As for market access, in 2019, we approved several securities companies controlled by foreign holdings. Meanwhile, days ago, we also declared that since April 1, 2020, applications for wholly foreign-owned securities and fund companies could be submitted for examination and approval. Generally speaking, the opening-up direction is consistent and has not changed. Thank you!
Go to Forum >>0 Comment(s)