Chairman of the China Securities Regulatory Commission Wu Qing, latest statement!

On December 6th, at the Eighth Member Conference of the China Securities Industry Association, Wu Qing, Chairman of the China Securities Regulatory Commission, delivered a speech on the high-quality development of the securities industry. Loosening the restrictions on high-quality institutions appropriately, moderately opening up capital space and leverage restrictions Wu Qing pointed out that securities companies should base themselves on their own resources, leverage their comparative advantages, further enhance their ability to integrate resources, make good use of merger and reorganization mechanisms and tools, achieve efficient allocation of advantages, and strive to establish several investment institutions with significant international influence during the "15th Five-Year Plan" period. Wu Qing pointed out that excellence is not exclusive to top institutions; small and medium-sized institutions should also leverage their advantages, concentrate resources in specific areas and key regions, and create small but excellent specialized investment banks and service providers. Regulatory policies will also encourage strengthening differentiated supervision, particularly loosening restrictions on high-quality institutions appropriately, moderately opening up capital space and leverage restrictions, and enhancing the efficiency of capital utilization. Strictly regulate a few problematic securities firms according to the law Wu Qing pointed out that for small and medium-sized securities firms and foreign-owned securities firms, in terms of differentiated evaluation and access, exploring differentiated supervision to promote specialized development is essential, with fairness being a priority. A few problematic securities firms must be strictly regulated in accordance with the law, and violations must be strictly punished. A-shares have achieved a reasonable increase in quantity and quality Wu Qing pointed out that the A-share market has been generally active this year, with the market value surpassing 100 trillion yuan since August, achieving a reasonable increase in quantity and quality. Wu Qing stated that securities institutions are the most important bridge linking investment and financing parties in the capital market, playing a crucial role in improving market functions and ecological environment. Securities companies' total assets have reached 14.5 trillion yuan, with net assets of approximately 3.3 trillion yuan. Over the past four years, there has been an increase of over 60% and 40%, respectively. These companies have served over 1,200 technology innovation enterprises. The securities industry's structure continues to optimize, with milestone cases such as the Guotai Haitong merger smoothly pushing forward, achieving the effect of "1+1>2." Small and medium-sized institutions have made breakthroughs by focusing on specific sectors, transitioning to differentiated and specialized development. Foreign institutions are accelerating their presence in the domestic market, further promoting opening up. Currently, there are 11 wholly foreign-owned or controlled companies operating in China, globalization flourishing. Continuously enhance the adaptability and competitiveness of the securities industry Wu Qing emphasized that only by adhering to the main line of risk prevention, strict regulation, and promoting high-quality development, along with maintaining innovation and keeping up with the times, can the securities industry improve its adaptability and competitiveness steadily amidst complex environments and changes. Wu Qing pointed out that in line with the inherent requirements of high-quality economic and social development, the overall strength of the securities industry needs to be improved, with shortcomings in professional levels, innovation capabilities, the need for enhanced compliance and risk control systems, and strengthening industry cultural construction. It is essential to address these deficiencies persistently and make continuous efforts to achieve success. Securities companies must strengthen their mission in four aspects Wu Qing stated that securities firms and investment banks should play significant roles in the securities industry's mission and responsibilities during the "15th Five-Year Plan" period: 1) strengthening their mission towards serving the real economy and the development of new productive forces; 2) enhancing their mission to better serve investors in optimizing asset allocations for residents; 3) reinforcing their mission towards accelerating financial strengthening; and 4) strengthening their mission in promoting high-level systemic openness. The securities industry must better serve the real economy and the development of new productive forces Wu Qing pointed out that the new generation of technological revolution represented by artificial intelligence, biomedicine, and green energy is accelerating, where companies driving innovation take a more prominent role. Securities firms, as the link between the capital market and real entities, play an irreplaceable role in discovering the innovation potential of enterprises, matching investment and financing needs, and supporting industrial mergers and acquisitions. This contributes to the micro foundation of the capital market's pricing development, resource allocation, and functional performance. Serving the real economy and the development of new productive forces is the mission given to the securities industry by the times. Securities companies must provide products conducive to long-term and value investing Wu Qing pointed out that under the structural changes in the new economic and social landscape, securities companies and investment institutions have obvious professional advantages in equity investment, price discovery, and risk management. They must cater to diverse investor preferences, varying scales, and different demands based on timeframes, providing more diverse, precise, and favorable products for long-term and value investing, achieving mutual success with investors. Securities companies must consciously maintain market order and practice the value investing philosophy Wu Qing pointed out that the changes in the securities industry in recent years have shifted from pursuing expansion based solely on scale and profit to prioritizing functions. This positive trend needs to be consolidated continuously by sternly rejecting the pursuit of mere scale, growth rates, and rankings. Wu Qing pointed out that to achieve high-quality development, the securities industry must grasp the fundamental role of serving the real economy, optimizing business structures, innovating product tools, focusing on the five key areas of finance, allocating resources such as funding, talent, and technology, highlighting support for the development of new productive forces, deeply analyzing the trends in technological innovation and industrial integration, enhancing product precision, consciously upholding the social responsibility of protecting investors' legitimate rights and interests and promoting stable market development. Never forget that individual investors make up a vast majority of the market when maintaining market order and the "three public" principles, practicing the value investing philosophy, and reinforcing cross-cycle and counter-cyclic positioning, effectively utilizing the expertise of chief economists and industry institutions, telling the Chinese stock market story well, and actively creating a positive public opinion environment. Securities companies must take on the responsibility of being the "gatekeepers," from strictly monitoring IPOs to providing comprehensive support throughout Wu Qing pointed out that the securities industry must take on the responsibility of being the "gatekeepers," from strictly monitoring IPOs to providing comprehensive support throughout, guiding listed companies to operate in compliance and enhance their value. They must enhance their capabilities in value discovery and cultivation, strengthen business collaboration, enhance the professionalism and influence of IPOs and mergers and acquisitions, actively engage in creating corporate value, focus on strengthening underwriting sponsorship and pricing unity, and promote the balanced and coordinated development of the primary and secondary markets. They must enhance financial management capabilities, align more closely with investors' interests, establish an evaluation system centered on investor returns, promote the transformation and development of brokerage business and comprehensive wealth management, offer full support for various types of medium and long-term funds in terms of products, trading, market-making, and risk management, improve the ecosystem for long-term investments, adhere to high standards of internationalization, and intensify the inflow and outflow. Securities companies must innovate financial products continuously based on risk control Wu Qing pointed out that the securities industry is at the forefront of the market economy and must continuously innovate financial products on the basis of risk control to better meet the needs of various investors and markets. With financial technology innovation booming, it is profoundly changing or even reshaping the financial market ecosystem. Industry institutions must be adept at thinking, adapting, and seeking change, actively researching, steadily exploring, and advancing the deployment and application of technologies such as artificial intelligence, big data, and blockchain in the capital market. This article is a translation from "Economic Daily News," edited by GMTEight: Li Fo.