China's State Council has rolled out a comprehensive guideline aimed at strengthening the regulation of the capital market, mitigating risks, and promoting its high-quality development. This marks the third such guideline in two decades, following similar measures in 2004 and 2014.
The new guidelines emphasize building a secure, transparent, and dynamic capital market. By enforcing strict regulations on securities issuance, listing processes, and maintaining rigorous oversight on listed firms, China aims to enhance the intrinsic stability of its financial sector.
Key measures include intensified regulation on delisting procedures and tighter scrutiny of institutions like securities and fund management companies. Additionally, the guidelines call for enhanced supervision over high-frequency trading and other trading types, aiming to stabilize market operations further.
China also plans to attract medium and long-term capital into its markets, deepen reforms, open up its financial sector, and strengthen the rule of law within the capital market. These initiatives are part of the broader goal to advance Chinese modernization through a robust and resilient financial system.
By prioritizing regulation and risk prevention, the State Council seeks to fully harness the functions of the capital market, contributing to the nation's overarching economic growth and modernization objectives.
Reference(s):
China to strengthen capital market regulation, risk prevention
cgtn.com
