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The 2017 National Securities and Futures Regulation Work Conference, held on February 10 at the organ of the China Securities Regulatory Commission (CSRC), summed up the work of 2016, analyzed the current market situation and deployed the major tasks in 2017. Liu Shiyu, CSRC Party Chief and Chair delivered at the conference a speech entitled “consistently strengthening political awareness, awareness of overall situation, awareness of core leadership and awareness of uniformity (four-awarenesses), moving forward while maintaining stability, and rationally fueling the capital market’s reform, stability and development”.
It is pointed out at the conference that in 2016, under the strong leadership of the CPC Central Committee with President Xi Jinping as the core, all the cadres and employees of the securities and futures regulation system steadfastly implemented decisions and deployments made by the CPC Central Committee and the State Council, took advantage of the good and steady progress to overcome all the difficulties, reflected on the lessons resulted from abnormal fluctuations in the stock market, strictly regulated in an all-round way according to law to continuously rationalize market order and protect investors’ legitimate rights and interest, served the supply-side structural reform, maintained the steady and healthy growth of the market in the complicated situation, and contributed to the economic and social development. (1) New changes have taken place in the capital market’s regulatory philosophy, and more importance has been attached to maintaining the capital market’s steady and sound growth. (2) Further progress has been made in systematically building the Party as well as ideological and political aspects. (3) More contributions to serving the real economy have been achieved. In 2016, the total amount related to IPOs and refinancing projects reached RMB1.33 trillion, with a year-on-year growth of 59%. Wining a battle against poverty has been taken as a noble political task, as the policy characterized by “review once being submitted and issuance once being approved” has been applied to the poverty-stricken areas, with one enterprise approved for issuance. (4) The ability of complying with and serving the national macro-control policy has been enhanced. (5) New achievements have been made in the reform and construction of the multi-layer capital market. In terms of boosting the reform of the New Third Board, the number of the companies listed on the Board in 2016 reached more than 10,000. The standardized development of the regional equity market has been actively promoted. (6) Further improvement has been seen in regulatory enforcement. Severe punishment and heavy penalties have been adopted to cement the strict regulation in an all-round way according to law. The total number and amount of penalties in 2016 reached record highs, with the number of the people forbidden to enter the market ascending to new high. (7) New progress has been made in protecting the rights and interest of small and medium sized investors. (8) The development of the securities and futures industry presents a new look. Importance has been attached to strengthening the standardized guidance and propelling the sustainable growth of the securities, futures and fund institutions. (9) The ability of controlling financial risks and maintaining market stability has withstood new tests. We have earnestly learned the lessons from the stock market’s abnormal fluctuations, held our bottom line and took several measures on relevant issues to effectively prevent and resolve market risks. (10) The capital market’s two-way opening-up has stepped into a new stage. (11) The ability of market communication and expectation management has reached a higher level.
It is held at the conference that the global economic adjustment has not been completed, and the complicated factors in the international community should not be underestimated. Anti-globalization trend has ascended, and we are facing an unquiet global financial market. Although China’s economy is steady on the whole, we should know that it is still in a special stage featuring a combination of 3 phases (the phases of growth rate change, structural adjustment and previous incentive policies’ digestion), and a lot of difficulties and challenges are facing us. The acute issues affecting China’s economic operation are resulted from major structural imbalance, which is mainly showed in 3 major imbalances, namely, imbalances between supply and demand, finance and real economy, and real estate and real economy. The same issues also exist in the financial sector. After 20 years’ development of China’s capital market, we have made outstanding achievements attracting worldwide attention, but the market is not mature yet and we should not underestimate the fragility and complexity of the market.
In 2017, the internal and external environments for the capital market will tend to be more complicated. We should thoroughly understand the major judgments on the economic situation, the major decisions on the economic work and the major adjustments to the thoughts and methods for the economic work made by the CPC Central Committee since the 18th CPC National Congress, implement the requirements made at the Central Economic Work Conference, firmly stick to the keynote of making progress while maintaining stability, rationally boost all the work items related to the capital market’s reform, stability and development as well as the regulatory work with reform as the guidance, stability as the bottom line and development as the theme. A total of 6 aspects should be highlighted for stability. (1) The reform direction of marketization, rule of law and internationalization should not be changed, which is the top stability. (2) We should be pragmatic by adhering to the effective regulatory policies and measures which have withstood tests in the market. (3) The stable operation of the capital market is a foundation for reform and development measures. (4) We should continuously crack down on all kinds of violations in the capital market, and inspection and enforcement measures should be further strengthened. (5) We should have quick response, correct judgment and fast action on all kinds of issues and phenomena in the market. (6) We should have full schemes, clear responsibilities and decisive actions for risks. Another 6 aspects should be emphasized on progress. (1) Four-awarenesses should be cemented. (2) The ability of serving the real economy and the national strategies should be enhanced. (3) Efforts should be made to propel the systematical reform of the multi-layer capital market and strengthen the market’s fundamental functions. (4) We should dare to purify the eco-environment of the capital market. (5) The ability to serving the securities and futures industry and the international competence should be improved. (6) New measures should be worked out for opening-up, and more achievements should be strived for in the legal system construction.
It is also stressed at the conference that the general requirement for the 2017 securities and futures regulation work is given as follows: we should comprehensively implement the requirements put forward at the 18th National Congress of the CPC, the 3rd, 4th, 5th and 6th Plenary Sessions of the 18th CPC Central Committee, earnestly study the speeches and the new philosophies and thoughts on managing state affairs by General Secretary Xi Jinping, continuously strengthen four-awarenesses, especially the awareness of core leadership and the awareness of uniformity, attach importance to the “5-in-1” general layout (economic, political, cultural, social and eco-civilization construction) and the strategic layout of “Four Overall Constructions” (building a moderately prosperous society, boosting reform, ruling the country according to law and cementing the Party discipline in an all-round way), and stick to the keynote of making progress while maintaining stability. Besides, we should firmly erect and carry out new development concepts, stay true to our mission, adhere to strict regulation in an all-round way to protect investors’ legitimate rights and interest, and vigorously improve the regulatory ability. Furthermore, we should attach more importance to controlling financial risks, hold the bottom line of no systematical risk, drive and serve the supply-side structural reform, further boost opening-up, facilitate the ability of the capital market in serving the real economy and the social development, and prepare for the 19th National Congress of the CPC with remarkable achievements. (1) Efforts should be made to cement the Party discipline, strictly administrate the CSRC in an all-round way and adhere to the political direction of the capital market’s growth. (2) More importance should be attached to risk control, with the bottom line of no systematical risk held. (3) We should further the strict regulation in an all-round way according to law, maintain the market order, and continuously elevate the regulatory ability. (4) The main line of supply-side structural reform should be focused to improve the ability of serving the real economy. (5) The systematical construction of the multi-layer capital market should be steadily propelled. (6) The market infrastructure and the regulatory guarantee ability should be further built. (7) We should actively boost the construction of the capital market’s legal and credit systems and investor protection. (8) The capital market’s opening-up should have a new look. (9) Self-building should be propelled in the whole securities and futures system.
The conference lasted one and half a day. Among those attending on the spot or through video were representatives from the CPC Central Commission for Discipline Inspection, the Office of the Central Leading Group on Financial and Economic Affairs, the General Office of the State Council, the State Development and Reform Commission, the People's Bank of China, and the Supreme People's Court, some media representatives, as well as officials of the CSRC departments and heads and cadres of the relevant organs.
