The China Securities Regulatory Commission (CSRC) held talks on Thursday with investors stressing the need of a good market environment with stable expectations while ensuring sufficient competition and a sound legal system in place as the country is ramping up efforts to provide healthier and sustainable conditions for investors. 

The talks came in line with the continuous sluggish performance of the market on Thursday. The Shanghai Composite Index went straight to below 3,000 points and closed at 3,079.81 points, down 2.26 percent, while the Shenzhen Component Index closed at 11,084.28 points, down 2.70 percent. This trend is the result of the combined challenges of the ongoing epidemic, inflation and regional conflicts that continue to put pressure on the stability of markets globally.

The meeting held on Thursday highlighted that the key experience in the high-quality development of the capital market in recent years is establishing a good market environment, with stable expectations and sufficient competition, while ensuring a sound legal system is in place.

Given this context, the commission pledged to comprehensively promote the structural transformation of the capital market from scale expansion to quality improvement in terms of the market system, listed companies, financing ratio, intermediary institutions, and investor composition.

Moreover, to create a healthier market environment, the government will improve the securities law enforcement system and mechanism, strengthen administrative law enforcement, and severely crack down on various violations of laws and regulations.

Under the principle of "non-intervention," market vitality will be further stimulated, including the construction of a market environment that is predictable, entertaining and competitive, according to the CSRC.