Chairman of the China Securities Regulatory Commission, Wu Qing: For high-quality institutions, we will appropriately loosen capital and leverage restrictions. Differentiated supervision will be implemented for small and medium-sized securities firms and foreign securities firms.

Chairman of the China Securities Regulatory Commission, Wu Qing, stated at the 8th member conference of the Securities Association of China on December 6 that differentiated and characteristic development must achieve new breakthroughs. Wu Qing emphasized that all securities companies should base themselves on their own resource endowment, leverage their comparative advantages, and shift from price competition to value competition. Leading institutions must maintain a sense of urgency, strive for excellence in market competitiveness, customer and investor service, risk management, and set a benchmark, and further enhance their awareness and capabilities of resource integration. They should utilize merger and reorganization mechanisms and tools effectively to achieve complementary advantages and efficient allocation, and strive to establish several leading institutions with significant international influence during the "15th Five-Year Plan" period. "It should be emphasized that top-tier investment banks are not exclusive to leading institutions; small and medium-sized institutions should also leverage their advantages and develop in a differentiated manner, concentrate resources in specific areas such as niche sectors, specialized client groups, and key regions, and strive to build 'small but beautiful' boutique investment banks, specialized investment banks, and specialized service providers," Wu Qing said. Wu Qing stated that the China Securities Regulatory Commission will focus on strengthening differentiated supervision, supporting excellence and limiting inferiority, loosening restrictions on high-quality institutions appropriately, further optimizing risk control indicators, moderately opening up capital space and leverage limits, and improving capital utilization efficiency. For small and medium-sized securities firms and foreign securities firms, the commission will explore implementing differentiated supervision, promote characteristic development, and for a few problematic securities firms, strict supervision will be enforced according to law, and violations will be strictly punished according to law.