China’s Securities Regulator Urges Institutional Investors to Stabilize Market and Boost EconomicGrowth

BEIJING, Aug. 25 (Xinhua) –China’s securities regulator has called on institutional investors to maintain their confidence and play a more stabilizing role in the market, while also acting as a catalyst for economicgrowth.

Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), made the remarks at a recent symposium with representatives from leading institutional investors, includingthe National Social Security Fund, insurance asset management companies, bank wealth management firms, and private equity funds.

Investment and financing are two sides of the same coin in the capital market, Wu said. Their coordinated development is crucial forthe long-term healthy development of the capital market.

He emphasized that China’s economy is currently in a critical period of high-quality development, with increasing demand for resident asset allocation, wealth management, and retirement investment. This hasled to a growing need for long-term funds to invest in equities.

Wu highlighted the CSRC’s commitment to promoting stability, risk prevention, and high-quality development through reforms. He stated that the regulator will continue to optimize key institutional arrangements related to issuance, listing, trading, and delisting, aimingto establish a policy framework that encourages long-term investment.

The CSRC will strive to build a capital market that better serves the construction of a Chinese-style modernization by fostering a balance between investment and financing, Wu added.

He acknowledged the significant growth of institutional investors in China’s capital market inrecent years, noting their increasing trading share and their role as a benchmark for rational, value-oriented, and long-term investment.

Institutional investors have played a crucial role in promoting the healthy and stable development of the capital market, Wu said. We hope they will continue to maintain their confidence, remain steadfastin their commitment to long-term investment, and enhance their professional research and investment capabilities.

Wu urged institutional investors to continue to act as role models, strengthen the buying power in the market, and help investors achieve reasonable returns. This, he said, would boost investor confidence and trust, further solidifying their position asstabilizers of the market and drivers of economic growth.

We need to strengthen the buy-side force in the market, help investors get reasonable returns, enhance investor confidence and trust, and make institutional investors more of a stabilizer for market operation and a booster for economic development, Wu said.

The CSRC’s call for institutional investors to play a more active role in the market comes at a time when China is seeking to deepen its capital market reforms and enhance its role in supporting economic growth.

The regulator’s focus on long-term investment and risk management reflects its commitment to building a more stable and resilient capital marketthat can better serve the needs of both investors and the broader economy.

Background:

China’s capital market has experienced significant growth in recent years, with the number of listed companies and the volume of trading activity increasing steadily. The government has been actively promoting the development of the capital market as a key driver ofeconomic growth and innovation.

However, the market has also faced challenges, including volatility, speculation, and concerns about corporate governance. The CSRC has been working to address these challenges through a series of reforms aimed at improving market efficiency, transparency, and investor protection.

Significance:

The CSRC’s callfor institutional investors to play a more active role in the market is a significant development. It reflects the regulator’s recognition of the importance of long-term investment and the need for a more stable and resilient capital market.

By encouraging institutional investors to take a more active role in the market, the CSRC hopesto create a more balanced and efficient market that can better serve the needs of both investors and the broader economy.

【来源】http://www.chinanews.com/cj/2024/08-25/10274484.shtml

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