Entering ChinaAccording to the website of the China Securities Regulatory Commission on February 7, in order to thoroughly implement the Third Plenary Session of the 20th Central Committee of the Communist Party of China, the Central Financial Work Conference, the Central Economic Work Conference and the new “National Nine Articles” on doing a good job in science and technology finance, green finance, inclusive finance, pension finance, digital finance “five major articles” deployment requirements, actively play the function of the capital market, improve the quality and efficiency of serving the real economy, the China Securities Regulatory Commission has formulated the “Implementation Opinions on the Capital Market to Do a Good Job in Finance” Five Major Articles”.
Opinions on the implementation of the “five major articles” on the capital market to do a good job in finance
All dispatched agencies, exchanges, subordinate units, associations, and departments of the China Securities Regulatory Commission:
These Implementation Opinions are formulated in order to thoroughly implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, the Central Financial Work Conference, the Central Economic Work Conference, and the deployment requirements of the Several Opinions of the State Council on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Capital Market (Guo Fa [2024] No. 10), actively give full play to the functions of the capital market, and strive to do a good job in the “five major articles” of science and technology finance, green finance, inclusive finance, pension finance, and digital finance, so as to better serve the high-quality development of the economy and society.
1. General requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the 20th National Congress of the Communist Party of China and the 2nd and 3rd Plenary Sessions of the 20th Central Committee of the Communist Party of China, completely, accurately and comprehensively implement the new development concept, focus on building and supporting comprehensive innovation systems and mechanisms and the development of new quality productive forces, deepen the structural reform of the financial supply side, improve the basic system of the capital market, enhance inclusiveness and adaptability, strengthen the functions of the capital market in promoting capital formation and optimizing resource allocation, and promote the transformation of factor resources to scientific and technological innovation, advanced manufacturing, green and low-carbon, Major strategies, key areas, and weak links such as inclusive people’s livelihood are concentrated to better meet the demand for high-quality financial services for high-quality development and contribute to China’s modernization.
— Adhere to political guidance and serve the overall situation. Deeply grasp the political and people’s nature of capital market work, adhere to the duty of serving the real economy, firmly establish the concept of finance for the people, and provide higher quality and more efficient financial services for economic and social development.
— Adhere to problem-oriented and precise policies. Highlight the key points, strive for practical results, strive to break through the capital market to do a good job in the financial “five major articles” of blocking points and difficulties, create a good institutional environment, improve the accuracy and effectiveness of policies, and promote a virtuous cycle of economy and finance.
——Adhere to integrity and innovation, and seek progress while maintaining stability. Make good use of the “key move” of reform, and persist in promoting the innovative development of the capital market on the track of marketization and rule of law. Handle the relationship between the government and the market, deepen the comprehensive reform of investment and financing in the capital market, and strengthen risk prevention and control and regulatory capacity building.
——Adhere to system integration and coordination. To do a good job in the “five major articles” of finance, the capital market should not only make sure that each article has its own focus, but also pay attention to systematic, holistic and synergistic, and strengthen the coordination and convergence with policies in the fields of finance, finance and taxation, and industry.
2. Strengthen financial services for the whole chain and life cycle of science and technology enterprises
(1) Support the issuance and listing of high-quality science and technology enterprises. We will continue to promote the implementation of a package of policies and measures, such as the “Sixteen Measures for the High-level Development of Capital Market Services for Science and Technology Enterprises” and the “Eight Measures for Deepening the Reform of the Science and Technology Innovation Board to Serve Scientific and Technological Innovation and the Development of New Quality Productive Forces”. Adhere to the “four aspects”, further enhance the inclusiveness of new industries, new forms of business and new technologies, and increase support for strategic industries such as new generation information technology, artificial intelligence, aerospace, new energy, new materials, high-end equipment, biomedicine, and quantum technology. Actively explore ways to combine an effective market with a promising government, further improve the institutional mechanism for accurately identifying technology-based enterprises, and make greater efforts to support the issuance and listing of technology-based enterprises that break through key core technologies in new industries, new business forms and new technologies. Continue to support the issuance and listing of high-quality unprofitable technology-based enterprises. Improve the rules for information disclosure of science and technology enterprises. Optimize the underwriting mechanism for new share issuance, dynamically assess the effectiveness of the pilot implementation of the deepening issuance and underwriting system on the Science and Technology Innovation Board, and expand the scope of application in a timely manner. Steadily promote the implementation of the identification standard of “light assets and high R&D investment”, and the release and implementation of the refinancing shelf issuance system. Guide technology-based enterprises to make reasonable use of the “two markets and two resources” listed at home and abroad, and support high-quality technology-based enterprises listed overseas to return to A-shares.
(2) Optimize the mergers and acquisitions of technology-based listed companies, equity incentives and other systems. Implement the “Opinions on Deepening the Reform of the M&A and Restructuring Market of Listed Companies”, and take multiple measures to activate the M&A and restructuring market. Encourage technology-based enterprises to carry out mergers and acquisitions in upstream and downstream industries in the same industry, and support listed companies to carry out mergers and acquisitions around industrial transformation and upgrading and find the second growth curve. Support listed companies to acquire high-quality unprofitable assets that help strengthen the chain and improve the level of key technologies. Support technology-based enterprises to carry out cross-border mergers and acquisitions in a reasonable manner. Improve the inclusiveness of the valuation of M&A and restructuring of technology-based enterprises, and support the adoption of diversified valuation methods that adapt to the characteristics of new qualitative productivity. Improve the rules of the merger system by absorption, and support listed companies to carry out mergers by absorption. Encourage technology-based listed companies to comprehensively use shares, directional convertible bonds, cash and other payment tools to implement mergers and acquisitions, and establish an installment payment mechanism for share consideration. Promote the implementation of simplified procedures for M&A and restructuring review. Encourage the development of M&A funds. Compile more science and technology innovation indexes, and develop more science and technology innovation theme mutual funds and related futures and options products. Enhance the inclusiveness and flexibility of equity incentives for technology-based enterprises, optimize implementation procedures and reserved equity arrangements, and apply provisions such as short-term transactions and window periods to the granting and vesting of equity incentives.
(3) Guide private equity venture capital funds to invest early, small, long-term, and hard technology. Implement the policy arrangements of the General Office of the State Council on promoting the high-quality development of venture capital, smooth the diversified exit channels of private equity venture capital funds, and promote a virtuous cycle of “fundraising, investment, management and withdrawal”. Optimize the “reverse linkage” policy for private equity venture capital funds to withdraw. Promote the pilot project of private equity venture capital funds distributing shares in kind to investors. Research and improve the system and mechanism for the transfer of shares of private equity venture capital funds. Supporting the development of private equity secondary market funds (S funds). Support the pilot of direct equity investment by financial asset investment companies. Broaden the sources of funds for private equity venture capital funds through multiple channels, make greater efforts to attract the participation of social capital, and actively develop patient capital.
(4) Increase the support of the multi-level bond market for scientific and technological innovation. Promote the high-quality development of science and technology innovation corporate bonds, optimize the issuance and registration process, encourage relevant institutions to provide credit enhancement support for science and technology enterprises to issue bonds in accordance with the principles of marketization and rule of law, and explore the development of more science and technology innovation theme bonds. The high-quality enterprise science and technology innovation bonds will be included in the benchmark market-making varieties, and the policy support for the discount coefficient of the exchange pledged repurchase will be increased. Explore the business of intellectual property asset securitization. Support the issuance of real estate investment trusts (REITs) for projects in areas such as artificial intelligence, data centers, and smart cities, as well as projects in the fields of science and technology innovation industrial parks, promote the revitalization of existing assets, and support the digital transformation of traditional infrastructure.
3. Enrich the product system of the capital market to promote green and low-carbon transformation
(5) Improve the green finance standard system of the capital market. We will continue to optimize the standards for green bonds, unify the use of raised funds, information disclosure and regulatory requirements, and study and improve the evaluation and certification standards. Rating agencies are encouraged to incorporate environmental information indicators into their bond issuance rating methodology. Implement the rules for sustainable information disclosure of exchanges, and continue to strengthen the information disclosure requirements for listed companies to practice green development. Study and strengthen the construction of sustainable rating and assurance systems, and improve regulatory mechanisms. Actively participate in the formulation of international sustainability standards, and promote the International Sustainability Standards Council to further improve the inclusiveness and operability of the standards. Research and formulate green stock standards and unify business rules. Promote the improvement of the statistical system for green finance.
(6) Enrich green financial products in the capital market. Support eligible green industry enterprises to issue and go public, finance mergers and acquisitions, and issue green bonds and green asset-backed securities. Further enhance the convenience of green bond application acceptance, review and registration. Launched more green-themed mutual funds. Encourage the development of green private equity venture capital funds. Promote the construction of the carbon futures market and the R&D and listing of carbon emission rights futures in a steady and orderly manner, and support qualified financial institutions to participate in carbon emission rights trading under the premise of compliance with laws and regulations and controllable risks. Develop more green and low-carbon futures and options that meet the needs of the development of the real economy. Support the Guangzhou Futures Exchange to build a green futures exchange. Enrich the green index system and its derivatives. We will continue to deepen international cooperation on green issues and promote the two-way opening up of the green securities market.
Fourth, improve the efficiency of capital market services for inclusive finance
(7) Improve the institutional arrangements for capital market services for small, medium and micro enterprises. We will further promote the pilot of inclusive finance on the Beijing Stock Exchange and the New Third Board, and support the listing of high-quality small and medium-sized enterprises such as “specialized, special and new”. Accelerate the establishment of a statistical evaluation system for inclusive financial services on the Beijing Stock Exchange and the New Third Board, give full play to the role of the evaluation “baton”, guide market institutions to tilt resources towards inclusive financial services, and increase the docking services for small, medium and micro enterprises. Standardize the development of regional equity markets, improve the comprehensive services of “specialized, special and new” special boards, and strengthen organic ties with national securities trading venues. Promote the docking of regional equity market rules and the unification of standards.
(8) Enrich the way the capital market serves agriculture-related entities. Improve the “insurance + futures” model, steadily promote normalized operation, promote more capital participation, and expand the implementation area according to local conditions. Support the development of futures and options for agricultural products. Actively develop corporate bonds for rural revitalization, further improve the convenience of review and registration, and support enterprises to issue bonds for modern rural industries and the integrated development of rural industries. Support agricultural science and technology enterprises to become bigger and stronger through the capital market, and study and compile indices that reflect rural revitalization, modern agriculture, animal husbandry and aquaculture, and other areas focusing on the “three rural” areas.
(9) Better meet the diversified investment needs of residents. Promote securities and fund operating institutions to accelerate the transformation of wealth management. Enrich the pedigree of public fund products with different risk-return characteristics. Steadily reduce the comprehensive rate of the public fund industry, standardize the fund sales fee mechanism, and guide short-term transaction funds to long-term allocation funds. Improve the rules of the investment advisory system, promote the pilot transformation of the investment advisory business of public funds into a regular one, explore the establishment of industry practice standards, cultivate and expand the talent team, and orderly expand the scope of investable products.
Fifth, promote the capital market to better meet the needs of diversified pension finance
(10) Serve the goal of steady and long-term appreciation of medium and long-term funds such as pensions. Implement the “Guiding Opinions on Promoting the Entry of Medium and Long-term Funds into the Market” and the implementation plan, and open up the blocking points of medium and long-term funds such as social security, insurance, and wealth management. Promote the inclusion of qualified index funds and other equity public funds into the scope of individual pension investment. Promote the improvement of the regulatory system for equity investment of insurance funds, better encourage and guide insurance companies to carry out long-term equity investment, and expand the scope of pilot projects for long-term equity investment by insurance funds. Support qualified employers to explore the liberalization of individual choices for enterprise annuities, and encourage enterprise annuity fund managers to explore differentiated investments. Support all kinds of medium and long-term funds to carry out financial futures and derivatives hedging transactions. Promote all kinds of professional institutional investors to establish and improve a long-term assessment mechanism of more than three years.
(11) Provide high-quality pension financial products and services. Support the equity and bond financing of eligible health, pension and other silver-haired economic enterprises, and explore the issuance of asset-backed securities and REITs with pension facilities as the underlying assets. Support public fund management companies to set up subsidiaries to specialize in pension financial services. Promote securities and fund operating institutions to increase the transformation of business outlets, service APPs and other elderly care for the elderly. Strengthen the popularization and education of financial knowledge among the elderly, and protect the legitimate rights and interests of elderly investors.
6. Accelerate the promotion of digital and intelligent empowerment of the capital market
(12) Improve the digital level of the securities and futures industry. Promote the digital transformation of industry organizations. Steadily promote the pilot project of financial technology innovation in the capital market and the special pilot project of “data elements × capital market”, and steadily promote the application and implementation of technologies related to data elements in key areas of the capital market. Improve the function of the unified query platform for public fund account share information, and steadily promote the optimization of the account management function of securities companies to become routine. Promote the implementation of more “green light” projects for the issuance of stocks and bonds by digital economy and platform enterprises.
(13) Strengthen the construction of digital infrastructure for securities and futures. Improve the smart supervision platform. We will further promote the construction of regulatory big data warehouses and industry-based databases, optimize and improve industry data standards, break through data silos, continue to carry out data governance actions, and improve data service capabilities. Accelerate the intelligent transformation of supervision, strengthen system interoperability, strengthen cross-departmental data and information sharing, and further improve regulatory efficiency and risk identification and prevention capabilities. Strengthen information security management, and continue to improve the independent security and controllability of technical information in the whole market and the whole industry.
7. Strengthen the service capacity of the “five major articles” of industry institutions
(14) Improve the positioning and governance of industry institutions. Supervise and urge securities and futures operating institutions to correct their business philosophy and put functionality in the first place. Guide industry institutions to incorporate the “five major articles” of finance into their long-term business development strategies, strengthen the construction of organizational and management systems, and make appropriate preferences in terms of internal institutional setup, resource investment, and performance evaluation. Guide industry institutions to combine the characteristics of shareholders, regional advantages, talent reserves and other resource endowments, and do a good job in the “five major articles” of finance according to local conditions. Encourage securities companies, futures companies and other industry institutions to actively participate in the cause of rural revitalization, and carry out “one company and one county” pairing assistance. Establish and improve the statistics, assessment and evaluation system for the capital market to do a good job in the “five major articles” of finance, and improve the classification and evaluation index system for service scientific and technological innovation, information technology investment and other industry institutions. Cultivate a good industry culture and strengthen the construction of a talent team in the capital market.
(15) Strengthen compliance management and risk prevention and control. Urge industry institutions to firmly establish the concept of “compliance creates value”, implement comprehensive risk management and compliance management requirements for all employees, adhere to the principle of “if you can’t see clearly, you can’t do business”, avoid rushing to the top, and strictly prevent “pseudo-innovation” and “chaotic innovation”. In view of the risk characteristics of different fields of the “five major articles” of finance, explore the establishment of a hard constraint system for early risk correction, and urge industry institutions to improve risk identification, monitoring and early warning, and stress testing mechanisms.
8. Enhance the joint force of the capital market to do a good job in the “five major articles” of finance
(16) Complete working mechanisms. Strengthen coordination and cooperation with relevant departments and local governments, do a good job in the overall coordination of policy research and formulation, continue to promote the improvement of the capital market’s laws and regulations and policy system for the “five major articles” of finance, and supervise the implementation of various measures. Give full play to the subjective initiative of all parties, and do a good job in the research and promotion of innovative measures.
(17) Coordinate efforts to prevent risks and strengthen supervision. Strengthen risk monitoring, early warning and early correction, achieve early identification, early warning, early exposure and early disposal of possible risks, improve the risk assessment and feedback improvement mechanism for innovative activities, and maintain the smooth operation of the capital market. Adhere to the main responsibility and main business of supervision, strictly crack down on all kinds of violations of laws and regulations carried out in the name of the “five major articles” of finance, strictly prevent the transformation from real to virtual, self-entertainment, and effectively protect the legitimate rights and interests of investors.
(18) Strengthen publicity and guidance. Focusing on the capital market to better serve the development of new productive forces, strengthen the capital market to do a good job in the publicity and interpretation of major reforms and important policies of the “five major articles” of finance, and strive to create a good public opinion environment. Carry out various forms of publicity and education activities to strengthen investor education. Summarize experience and practices in a timely manner, and increase publicity and promotion of typical practices and demonstration cases. Dynamically evaluate the effect of policies, and optimize relevant measures in a timely manner.China Securities Regulatory
Commission February 7, 2025
