China Securities Regulatory Commission (CSRC) in Beijing Photo:VCG

China’s top securities regulator will continuously improve the adaptability and pertinence of supervision, maintain the bottom line of avoiding systemic risk, and ensure the smooth operation of the capital market, an official said on Wednesday.

Strengthening the supervision of the capital market, maintaining market order and the legitimate rights and interests of investors, and preventing and resolving financial risks are the top and legal responsibility of the China Securities Regulatory Commission (CSRC), said Yi Huiman, chairman of the CSRC, in a speech delivered at the 2023 Annual Conference of Financial Street Forum which kicked off on Wednesday in Beijing.

Capital market risks are mainly caused by excessive or even out-of-control leverage, imbalance between innovation and supervision, fraud, breach of trust, and lack of entity responsibility, according to Yi. 

Yi pledged efforts to strengthen cooperation with public security and judicial organs, and continue to improve the anti-counterfeiting system and mechanism in the capital market, among other measures.

Reforms will also be enhanced. The registration-based IPO reform is by no means a relaxation of regulations; it aims to achieve a better synergy between an efficient market and an active government. In practice, the reform has led to even stricter regulatory measures, most notably, the enhancement of transparency, Yi stressed.

The regulatory department will also strive to shore up working competence, such as strengthening related scientific and technological construction, enhancing cross-departmental information sharing and others, so as to achieve early identification, warning, exposure and early disposal of various illegal acts and risks, Yi noted.

Last but not least, efforts will be made to “give full play to joint efforts.” The CSRC will strive to strengthen “inter-ministerial linkage” and “central-local collaboration,” and bring all types of securities activities under supervision in accordance with the law, Yi stressed.

Under the guidance of the recently held tone-setting central financial work conference, Yi pledged efforts to hold the bottom line of avoiding systemic risk, and maintain the stable operation of the capital market, boost investor confidence, and remain committed to the path of financial development with Chinese characteristics.

Global Times