The official website of the CSRC yesterday published 37 replies to the proposals proposed by the representatives and members of the two sessions in 2021. These included 23 replies to the relevant suggestions of the fourth session of the 13th National People’s Congress and 14 replies to the relevant proposals of the fourth session of the 13th National Committee of the Chinese people’s Political Consultative Conference.
The reporter of Shanghai Securities News combed the above 37 proposals and found that these proposals involved many hot issues in the reform and development of the capital market, including the reform of the issuance registration system, the two-way opening of the capital market, the development of the bond market, the development of industrial institutions, the development of regional markets and so on. In its reply, the CSRC introduced and replied to the key work arrangements in these areas. Public information shows that the responses to these proposals and suggestions were formed between July and August 2021.
The CSRC revealed the following ten highlights of capital market policies in its reply. Come and read them in detail!
highlight 1: actively study and expand the channels for foreign institutional investors to enter the exchange bond market
Promoting the high-quality development of the bond market was a hot issue of concern on behalf of members at the national two sessions last year. Among the replies released by the CSRC this time, there are five involving the development of the bond market, namely:
Suggestions on promoting bond link in Lingang New Area of Shanghai pilot free trade zone and further promoting the opening of China exchange bond market to the outside world, suggestions on leading enterprises of agricultural industrialization issuing special corporate bonds for Rural Revitalization to support rural industrial revitalization, proposals on preventing and resolving credit bond risks of private enterprises Proposal on promoting the further opening of China’s exchange bond market to the outside world and proposal on strengthening enterprise financing and debt management.
the reply of the CSRC expressed support for the proposal to further promote the opening of China’s exchange bond market to the outside world.
The reply said that the CSRC is actively studying to expand the channels for foreign institutional investors to enter the exchange bond market, enrich the investor structure and broaden diversified sources of funds; Pay close attention to promoting the formulation of panda bond issuance rules in the exchange bond market, and clarify the subject scope of bonds issued by overseas institutions, review and filing requirements, application of accounting standards, access of intermediaries, and foreign exchange management requirements.
At the same time, the CSRC will further study and demonstrate with relevant departments the positioning and feasibility of establishing a bond platform in Guangdong, Hong Kong and Macao, explore a high-level opening to the outside world, and play a greater role in serving the overall national strategy for the capital market.
With regard to the proposal to implement the bond link in the new port area of Shanghai free trade zone and allow foreign institutional investors to invest in the varieties of exchange bonds through the FTN account of Shanghai Free Trade Zone in the form of offshore RMB, the CSRC replied that the proposal provides a new idea for the opening of the exchange bond market, and the CSRC will seriously study it, And actively communicate and negotiate with relevant departments on relevant policies.
In addition, according to the relevant reply, the CSRC will accelerate the work related to the revitalization of rural corporate bonds, give full play to the role of the exchange bond market, and continue to promote the development of poverty-stricken areas and the overall revitalization of rural areas.
In order to prevent and resolve the credit debt risk of private enterprises, the CSRC will continue to strengthen the supervision and coordination with local governments and relevant departments, improve the bond credit risk prevention and early warning mechanism, strengthen the joint force of bond credit risk prevention and control, and steadily resolve the bond credit risk.
In terms of strengthening enterprise financing and debt management, the CSRC will continue to improve the basic system of the bond market, actively promote the judicial department to study and issue special documents, and clarify the legal basis for cracking down on “debt evasion”; Optimize the management of bond market access, consolidate the responsibilities of issuers and intermediaries, strengthen regulatory cooperation with relevant departments and units, and promote the high-quality development of the bond market.
focus 2: comprehensively promote the reform of supporting systems such as the whole market registration system and trading mechanism
In the reply released this time, there are three proposals related to the reform of the issuance registration system, namely, the proposal on further improving the stock issuance system, the proposal on giving full play to the professional strength of securities service institutions to comprehensively promote the stock issuance registration system, and the proposal on Abolishing the placement of new shares and improving the supporting system of the registration system.
The CSRC said in its reply that it would do a good job in the pilot evaluation and experience summary of the registration system, make overall research and promote the reform of supporting systems such as the whole market registration system and trading mechanism; Comprehensively establish a strict information disclosure system, earnestly implement the concept of registration system with information disclosure as the core, improve and improve the principle of highlighting importance and emphasizing enterprise characteristic information disclosure, and constantly urge issuers and relevant intermediaries to effectively improve the quality of information disclosure.
In terms of information disclosure, the CSRC will start to establish an information disclosure rule system suitable for the registration system to guide and standardize information disclosure behavior; Adhere to the guidance of investors’ needs and improve the usefulness of information disclosure decision-making; Highlight the characteristics of enterprises in the registration sector and emphasize special risk disclosure; Improve the pertinence of examination, registration and inquiry, and promote the issuer to improve the quality of information disclosure; Improve the disclosure mechanism of application documents and accept extensive social supervision.
In terms of the construction of the board transfer system, the CSRC will continue to do a good job in the work related to the board transfer, support the new third board companies that meet the conditions for the board transfer to the science and innovation board, the gem and other sectors, open up diversified market channels for the growth and growth of small and medium-sized enterprises, and improve the interconnection mechanism between multi-level capital markets.
The CSRC also mentioned in its reply that it will take the establishment of a normalized delisting mechanism as an important part of comprehensively deepening the reform of the capital market, strengthen the direction, make overall planning and coordinated promotion, and conduct dynamic evaluation in combination with practice; Broaden diversified exit channels, strengthen delisting supervision, accelerate the formulation of relevant investor protection systems, strengthen the supervision and accountability of the whole process and the whole chain, and promote the implementation of relevant schemes to the letter; It will also work with local governments and relevant departments to severely crack down on and seriously pursue responsibility for the adverse behaviors such as confrontation with supervision, improper protection of rights and even incitement to mass incidents in the process of delisting.
focus 3: improve the supply of equity fund products and promote the implementation of the public offering policy of individual pension investment as soon as possible
In the reply to the “suggestions on optimizing the business environment and accelerating the cultivation of the capital market of fund subjects”, the CSRC made it clear that it will continue to promote the comprehensive deepening reform of the capital market, continuously increase the proportion of direct financing, develop professional institutional investors, guide more medium and long-term funds to enter the capital market, and promote the capital market Medium and long-term capital and the real economy interact well.
The reply specifically mentioned three key tasks:
First, continue to deepen the reform of the financing side of the capital market. including: improving a more inclusive and adaptive multi-level capital market system, attracting more excellent enterprises to go public and increasing the proportion of direct financing; Further improve the quality of listed companies and provide better investment targets for medium and long-term funds; We will improve the dividend incentive system of listed companies, guide listed companies to repay investors through cash dividends and share repurchases, and broaden the channels for investors to share economic growth dividends.
second, strive to improve the professional ability of asset management institutions such as fund management companies, and improve the supply of products and services such as equity funds and fund investment consultants. including: strengthening the construction of incentive and restraint mechanism, promoting the medium and long-term assessment of public funds, various pensions and insurance funds, strengthening the long-term performance orientation and improving the professional ability of asset management institutions; Encourage fund managers to increase the supply of equity fund products and carry out product innovation around effectively meeting the diversified investment and financial needs of investors; Steadily promote the pilot of public fund investment consulting business, cultivate and expand the professional buyer intermediary team, and better serve the financial needs of residents.
third, continue to expand the sources of medium and long-term funds and attract all kinds of medium and long-term funds to actively invest in the capital market. including: continue to promote the national social security fund, basic pensions, enterprise annuities, occupational annuities and other types of pensions, insurance funds, bank financial funds and other active investment in the capital market; Promote and improve the construction of the national pension security system, and promote the implementation of the policy of individual pension investment in public funds as soon as possible; Support securities and futures institutions to provide professional services for market-oriented investment and operation of various medium and long-term funds; Strengthen the publicity and popularization of pension financial investment knowledge, and effectively protect the legitimate rights and interests of investors.
focus 4: study and formulate judicial interpretations of criminal cases such as fraudulent issuance and illegal disclosure in conjunction with the supreme law
In the reply to the proposal on imposing criminal and civil penalties on the persons responsible for financial fraud of listed companies, the CSRC said that it would make full use of the responsibilities entrusted by the law, crack down on vicious illegal acts such as financial fraud and fraudulent issuance, and resolutely investigate the illegal responsibilities of relevant institutions and personnel.
At the same time, the CSRC will work with the Supreme People’s Procuratorate and the Ministry of public security to study and improve the standards for filing and prosecuting criminal cases of securities and futures, and further enhance the scientificity and rationality of the standards for filing and prosecuting criminal cases; Together with the supreme law, we will study and formulate judicial interpretations on legal issues applicable to criminal cases such as fraudulent issuance of securities, illegal disclosure and non disclosure of important information, further clarify the relevant conviction and sentencing standards, and severely punish the crime of financial fraud in accordance with the law.
five: support one qualified foreign company one belt, one road, and the other side of the country, the listed company is listed on A shares
China’s one belt, one road, and the other A, the quality of the enterprises listed in the Chinese stock market, has been approved by the securities and Futures Commission. The Commission has clearly supported the listing of qualified foreign enterprises in the A share market. There is no special restriction on the listing of foreign enterprises in China.
One belt, one road, one belt, one road, will be listed on the A share market. The SFC will support the foreign capital market and the other countries along the belt. It will promote the opening up of the capital market system and deepen the joint efforts to build the “one belt and one way” International cooperation.
aspect 6: guide financial institutions to meet the financing needs of new energy vehicles, clean heating, biomass and other enterprises
Vigorously developing new energy is an important support for accelerating the construction of ecological civilization. It is an important measure to achieve the goal of carbon peak and carbon neutralization on schedule and fulfill China’s international commitments. In the reply released by the CSRC this time, there are three proposals and suggestions related to promoting the development of new energy industry, namely: suggestions on the financing innovation of Shanxi Guoxin Energy Corporation Limited(600617) industry, suggestions on financial support for the high-quality development of intelligent electric vehicle enterprises, and suggestions on vigorously supporting the upgrading of biomass energy clean energy heating infrastructure.
In its reply, the CSRC said that it actively supported the proposal to further promote the development of the Shanxi Guoxin Energy Corporation Limited(600617) industrial market. In the future, in combination with their own functions, financial institutions will be guided to meet the listing and listing financing of new energy vehicles, clean heating, biomass and other enterprises in accordance with the principles of controllable risk and commercial sustainability, improve the quality and efficiency of financial services, guide social capital to participate in the construction and operation of projects in the field of new energy, and continuously improve the ability and level of financial services for the new energy industry.
focus 7: actively support qualified tourism enterprises to carry out M & a
In the post epidemic era, China’s tourism industry is looking forward to high-quality development. With regard to the proposal on empowering the tourism industry through financial reform and innovation, the CSRC replied that the CSRC has always attached great importance to the development of tourism enterprises, continuously improved the ability of the capital market to serve tourism enterprises and the real economy, and improved the refinancing system of listed companies, Increase support for listed tourism enterprises, support qualified tourism enterprises to list and raise funds on the new third board, support qualified tourism enterprises to issue corporate bonds and steadily develop asset securitization, and support tourism enterprises to become better and stronger through M & A.
Next, the CSRC will continue to vigorously promote the market-oriented reform of M & A, actively support qualified tourism enterprises to carry out M & A, give play to the leading role of listed companies, and empower the high-quality development of tourism.
aspect 8: continuously optimize the letter Phi system, cooperate with and improve the civil liability bearing mechanism of accounting firms
In this announcement, there are three proposals and suggestions related to the information disclosure of listed companies, including the suggestions on improving the evaluation of the operation quality of listed companies and relevant information disclosure, the suggestions on clarifying the accounting responsibility and audit responsibility and reasonably defining the civil liability of certified public accountants Proposal on promoting the opening of the system and accelerating the improvement of the information disclosure standard and evaluation system of China’s responsible investment.
In its reply, the CSRC said that it attached great importance to guiding listed companies to implement the development concept of innovation, coordination, green, openness and sharing, focused on information disclosure, continued to strengthen the environmental, social responsibility and corporate governance information disclosure requirements of listed companies, and gradually formed a basic institutional framework to promote listed companies to practice green development, fulfill social responsibility Standardize corporate governance.
In the next step, the CSRC will continue to optimize the information disclosure system of listed companies, continuously improve the relevant requirements for information disclosure of listed companies’ environment, social responsibility and corporate governance, continue to take improving the transparency of listed companies as the goal and investor demand as the guidance, optimize the regulatory rule system of information disclosure, and improve the pertinence and effectiveness of information disclosure of listed companies; We will continue to strengthen accounting supervision in the capital market, continue to promote various entities to fulfill their respective responsibilities, and effectively improve the quality of financial information disclosure in the capital market and the professional ability of audit institutions; We will cooperate with relevant departments to improve the civil liability bearing mechanism of accounting firms and effectively protect the legitimate rights and interests of investors.
aspect 9: promote the establishment of information docking mechanism between regional markets and market regulators
Regional equity market is a private equity market that mainly serves small, medium-sized and micro enterprises in the provincial administrative region. It is an important part of the multi-level capital market system. It has played a positive role in expanding the tolerance and coverage of supporting scientific and technological innovation and broadening the financing channels of small, medium-sized and micro enterprises. For the development of the regional equity market, a member of the CPPCC National Committee put forward the proposal on establishing an information docking mechanism between the registration and settlement institutions of the regional equity market and the commercial registration institutions.
In its reply to the proposal, the CSRC said that in recent years, it has guided and supported unlisted joint stock limited companies to conduct centralized equity custody in the regional equity market to facilitate enterprises’ financing and achieved good results. At the same time, the CSRC has always actively coordinated and promoted the information interconnection between regional equity market registration and settlement institutions and market supervision and administration departments, and constantly explored the implementation form of equity registration information docking mechanism, but there has been no substantive progress at present.
It is reported that in the next step, the CSRC will continue to actively promote the establishment of an information docking mechanism between the regional equity market and the market supervision and management department to strengthen interconnection.
aspect 10: research and demonstration to determine the forest ticket as a standardized financial product
In its reply to the proposal on defining forest tickets as standardized financial products, the CSRC said that the people’s Bank of China and other financial administrative departments of the State Council will carry out research and demonstration on the relevant work of defining forest tickets as standardized financial products in accordance with relevant national regulations, and continue to strengthen the credit policy guidance for financial institutions, Encourage financial institutions to innovate products and services according to the characteristics of forestry, and better implement the development concept of “green water and green mountains are golden mountains and silver mountains”.
The reply also said that real estate investment trusts (REITs) are standardized and innovative financial instruments that can effectively revitalize stock assets and form a virtuous cycle of stock assets and new assets. From the experience of overseas mature markets, REITs is an important mode of forest land management. The CSRC is working with the national development and Reform Commission to steadily promote the pilot work of REITs in the field of infrastructure. In the next step, we can learn from the pilot experience of public offering REITs in infrastructure and explore the role of such financial products in promoting forestry development.
