On November 21, Yi Huiman, chairman of the China Securities Regulatory Commission, said in his keynote speech at the 2022 Financial Street Forum Annual Meeting that the 20th National Congress of the Communist Party of China intends to comprehensively promote the great renewal of the Chinese nation. with Chinese style modernization. The Central Committee of the Party has repeatedly emphasized the need to take the road of financial development with Chinese characteristics. This is the mission and responsibility that the financial sector must undertake in the process of Chinese-style modernization. We believe that in order to study and implement the spirit of the 20th National Congress of the Communist Party of China, the most important thing for practitioners in the capital market is to build and develop a modern capital market with Chinese characteristics. Focusing on the overall goal of “building a standardized, transparent, open, dynamic and resilient capital market”, the organic integration of “Chinese characteristics” and “general laws of the capital market”, and the expectations and concerns of all parties, we need to go to’ grappling with Making more detailed and systematic thinking about the fundamental significance, realization path, and key tasks of a modern capital market with Chinese characteristics. According to observations, among the many factors currently limiting the operation of the capital market, there is not only a lack of deep understanding of “Chinese characteristics”, insufficient grasp, deviations in implementation, and simple problems of “getting in “; “The understanding is not comprehensive, and the essence cannot be seen through the phenomenon. There are not only market related issues, but also regulatory issues, as well as deeper cultural issues. We must stick to the concept of the system, adhere to the two-point theory and dialectics, insist on moving forward from reality in everything, and on the basis of following the general laws of the capital market, better reflect Chinese characteristics and take our own path.
my country’s capital market has obvious characteristics of emergence and transformation, and the structure of listed companies also reflects the trend of adapting to the evolution of the economic system and the transformation and upgrading of industrial structure. We have always adhered to the “two unwavering” principle, and have supported economies of all types of ownership to use the capital market to grow stronger. Currently, listed state-owned companies and listed state-owned financial enterprises account for almost half of the market value, reflecting the status of state-owned enterprises as an important pillar of the national economy; private listed companies account for more than two. a third, and private enterprises account for 80% of newly listed companies in recent years Above; the market capitalization of foreign-controlled listed companies accounts for about 4%. The coexistence of multiple ownership economies, the structure of listed companies covering all major industries, and the common development of small and medium enterprises is not only a major feature of my country’s capital market, but also a major advantage. We need to have a deep understanding of the different Chinese elements and the characteristics of the development stage reflected in our market system and mechanism, the structure of the industry, and the sustainable development capabilities of the main body, conduct detailed research on the applicable scenarios of mature market valuation theories. , and understand the valuation logic of different types of listed companies. , to explore the establishment of a pricing system with Chinese characteristics, and promote a better function of market resource allocation.
The level of valuation directly reflects the market recognition of listed companies. Listed companies, especially state-owned listed companies, must, on the one hand, “promote their internal skills”, strengthen professional strategic integration, and improve core competitiveness; A good understanding of the intrinsic value of the enterprise is also the proper meaning of the enterprise. improve the quality of listed companies.
my country’s capital market started late and developed rapidly, and the cultural accumulation of the market is not enough. After hundreds of years of development, the global market has gradually formed a relatively mature investment philosophy, industry culture and code of conduct, and we still need to continue to learn from it. The duty of a wealth management organization is to “be trusted by others to manage money on behalf of others” An excellent organization must insist on putting customers’ interests first, respect investors, and have good professionalism. However, some of our organizations have gaps in concepts and behaviours. . Observing the responsibility of the “gatekeeper” is the basic requirement for sponsor intermediaries in the world. This is the bottom line to choose real companies, and this is the level to choose excellent companies. However, some of our organizations have not changed much, and they still pay too much attention to “approval” and not enough attention to “notoriety”, and some even “pass through the barriers with illness”. Professional focus is the core competitiveness of first-class investment institutions, but some of our investment institutions have not yet firmly established the concept of value investment, are eager to pursue market hotspots, and have obvious characteristics of “retail”. We must fully absorb and learn from the concepts of respecting the rule of law and adhering to the spirit of contracts in mature markets, improve the corresponding accounting, assessment and evaluation systems, maintain a professional attitude, cultivate good professional ethics, and make the capital . a healthier and more vibrant market.
We propose that the general laws of the capital market should be combined with the reality of the Chinese market, and with the excellent traditional Chinese culture. my country’s economy is dominated by the domestic cycle, and the domestic and international dual cycles promote each other. We sincerely welcome foreign institutions and funds to participate in China’s capital market more widely and deeply. It should be noted that domestic investors in the A share market account for more than 95% of the shares. Our organizations must study and understand these basic characteristics when making investments. They must have independent professional judgment and research abilities, too impulsive . It is necessary to pay more attention to absorb wisdom from the excellent traditional Chinese culture, to carry forward cultural concepts such as prudence, truth-seeking, prudence, humility and prudence, and improve the corresponding corporate governance, motivation and prevention, risk management. and regulatory systems. , multifaceted approach, long time for success.
From a global perspective, the structure of investors in the capital markets of different countries is very different, and there is no optimal investor structure, but institutionalization is a big trend. In recent years, the investor structure of the A share market is being changed in positive trends. The share of institutional investors’ holdings and transactions has steadily increased, while the share of individual investors’ transactions has steadily decreased to around 60%. But we must be soberly aware that the number of individual investors is more than 200 million, which is the largest market position in my country’s capital market, an important source of market vitality, and an important support for the normal operation of the market. While continuing to develop and strengthen institutional investment forces, we must pay more attention to protecting the rights and legitimate interests of small and medium investors. Over the past few years, we have practiced the people-oriented nature of supervision, improved the “big insurance” paradigm from various aspects such as system design, supervision and law enforcement, and risk disposal, optimized the investor service platform 12386, and unblock the channels for investor appeals, and achieve good results. . In the next step, we need to intensify our work further and take more effective steps. In terms of information disclosure arrangements, further highlight simplicity and ease of understanding, so that small and medium investors are ready to read and understand. Encourage listed companies to pay more attention to the requirements of small and medium-sized investors, and provide equal and smooth communication channels. Better implementation of institutional arrangements such as advance compensation, redemption order, and priority of civil compensation liability.
Yi Huiman said that building a modern capital market with Chinese characteristics is our common mission and task in the new era and new journey. Facing many major theoretical and practical issues, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for New Era, detailed study and action The spirit of the 20th National Congress of the Communist Party of China adheres to the principle of “system establishment, non-interference, and zero tolerance”, adheres to the reverence of the market, the rule of law, professions, and risks, and form a joint supervision concept Market theory innovation, practical innovation, and institutional innovation will further improve the functions of the capital market, better serve the construction of a new development paradigm, and promote high-quality development. The focus should be on the following principles.
One is to maintain and strengthen the overall leadership of the party. We should better combine the power of the market with the role of the government, give full play to our institutional advantages, speed up the process of building a market ecology where all parties jointly build, govern and share, and promote the modernization of the capital in continuous market governance system and governance capabilities.
The second is to stick to the focus of serving the real economy. Actively integrate into the overall economic and social situation, better implement strategic settings such as high-level technological independence and self-improvement, and build a modern industrial system to promote high-level circulation of technology, capital, and the real economy. Drawing up and implementing a new round of three-year action plans to improve the quality of listed companies. At the moment, it is necessary to pay close attention to the difficulties and challenges facing the real estate industry, support the implementation of plans to improve the balance sheets of high quality real estate companies, continue to support the financing needs of reasonable real estate bonds . companies, support real estate-related companies to carry out mergers and acquisitions and support financing, and support a certain portion of real estate-related businesses from initiatives to achieve equity financing.
The third is to continue to improve the basic capital market system. Adhere to the principle of marketing and the rule of law, learn from international best practices, and combine Chinese characteristics and the characteristics of the development stage to further promote the reform of the stock issuance registration system, coordinate and promote a package of key system innovations, expand institutional level opening high, and continuously improve market vitality and international standards Competitiveness.
The fourth is to stick to the lowest line of risk. Improving the accountability system for capital market risk prevention, early warning and removal, doing a good job of preventing and removing risk in key areas, and promoting the inclusion of all types of financial activities in accordance with the law.
The fifth is to adhere to the people’s point of view. Keep in mind the regulatory mission of protecting the rights and legitimate interests of small and medium investors, fully respecting and respecting investors, improving the three-dimensional insurance safety net, and effectively improving investors’ sense of benefit.
