Wu Qing, Chairman of the China Securities Regulatory Commission, answers questions during a press conference during the second session of the 14th National People’s Congress (NPC) in Beijing, March 6, 2024. (Photo provided by WANG Zhao) / AFP) (Photo by WANG Zhao / AFP) WANG ZHAO/AFP via Getty Images)
Wang Zhao | AFP | Getty Images
BEIJING – China’s top securities regulator vowed to crack down “sternly” on market manipulators, saying protecting small investors is its “core mission”.
China Securities Regulatory Commission Chairman Wu Qing said at a joint press conference Wednesday with other top Chinese economic and financial planners that regulations are important to ensure fairness, especially in markets dominated by small investors. He said that this is the core mission of the authorities.
Mr. Wu outlined the measures he believes are necessary to improve the quality of listed companies and increase their return on investment. These include encouraging listed companies to improve the stability, timeliness and predictability of their dividend payments, tightening delisting rules and expanding inspections of listed companies.
He said openness, fairness and justice should be the most important principles in capital markets.
“The Chinese market is the second largest in the world, but it is not very strong,” Wu said, adding that recent market volatility has exposed deep-rooted problems.
He said protections need to be strengthened so investors have confidence and confidence. It will also attract long-term investors, he added.
At the same press conference, People’s Bank of China Governor Ban Gongsheng also pledged to support high-quality Chinese companies in listing overseas.
struggling market
In response to recent extreme market volatility, the Chinese government has stepped up measures in recent weeks to support the struggling stock market.
These include tighter regulation of the burgeoning quantitative trading industry, curbs on short selling, changes to the top securities regulator, and stock buybacks by “national teams.”
Ahead of the quantitative trader ban, market veteran Wu was appointed chairman of the China Securities Regulatory Commission in early February.
December 2023, Securities Business Hall in Fuyang, China.
Cost Photo | Null Photo | Getty Images
Mr. Wu is known as the “Broker Butcher” for his work cracking down on traders, having served as deputy mayor of Shanghai, China’s major financial center, and as chairman of the board of the Shanghai Stock Exchange.
The Hang Seng Index, a Hong Kong-listed benchmark that includes many offshore Chinese stocks, is coming off four consecutive years of annual losses, while the CSI300 Index, the largest mainland-listed blue chip, has posted losses for the third consecutive year. .
As the mainland’s real estate market slumped and the stock market crashed, desperate mainland investors looked elsewhere for better returns despite strict capital controls.
As Xi Jinping won an unprecedented third term as president in parliament last year, the Chinese government announced an overhaul of financial and technology regulations and established a party-led system to oversee the two areas. A committee was established.