To Promote The Transformation Of Residents' Savings Into Investment, China Securities Regulatory Commission Plans Six Key Tasks For The Opening Year Of The 14Th Five Year Plan

"Next year is the first year of the 14th five year plan. It is very important to do a good job in the capital market next year." On December 22, Yi Huiman, secretary and chairman of the China Securities Regulatory Commission (CSRC), presided over the (enlarged) meeting of the Party committee and the Party committee to convey and study the spirit of the central economic work conference.

According to the contents of the meeting, the CSRC will adhere to the general keynote of seeking progress in stability, adhere to the system concept, adhere to the "system building, non intervention, zero tolerance", strengthen the construction of the capital market basic system, steadily increase the proportion of direct financing, and strive to enhance the hub function of the capital market, so as to actively contribute to the promotion of high-quality economic development.

For the next stage of capital market arrangement, the meeting also put forward six major work, specifically including: strive to improve the system and mechanism of capital market to support scientific and technological innovation; actively play the role of capital market as a hub to promote the smooth transmission mechanism of monetary policy, capital market and real economy; focus on strengthening the construction of investment end of capital market, enhancing the function of wealth management, and promoting residents' savings We should deepen the reform and opening up of the capital market and continue to strengthen the construction of the basic system. We should adhere to the premise of prudent supervision to prevent the disorderly expansion of capital. We should make overall plans for development and security, and resolutely fight against major financial risks.

Enhance the wealth management function of capital market

At the meeting, the CSRC proposed for the first time "enhancing the function of wealth management and promoting the transformation of residents' savings into investment". Specifically, it will promote the connection between the multi-level and multi pillar pension insurance system and the capital market, continue to vigorously develop equity public funds, and promote the improvement of long-term assessment mechanism for various professional institutional investors. We will further strengthen investor protection and enhance investor confidence.

Tian Lihui, President of the Financial Development Research Institute of Nankai University, said that wealth management is to provide a series of financial services through financial planning to achieve the purpose of maintaining and increasing the value of wealth under risk control. Among them, portfolio management is an important means of wealth management.

"The CSRC proposes to strengthen the construction of the investment side to promote further investor education and enhance the concept of value investment. On the premise that investors can correctly understand the risks, we should promote the maintenance and appreciation of investors' wealth. The capital market is not only a platform for listed companies to raise funds, but also a place for investors to share economic growth dividends through resource allocation. " Tian Lihui said.

According to wind data statistics, by the end of 2019, China's total national savings was 44.18 trillion yuan, and the national total savings rate was as high as 44.41%, which was lower than that of previous years, but still at the highest level in the world. In contrast, the proportion of foreign residents' income distribution is higher through specialized institutions.

"At present, the wealth effect of China's stock market is still relatively limited." Liu Lisheng, former deputy director of the International Business Department of the China Securities Regulatory Commission, said that on the one hand, it is necessary to give full play to the financing function of the capital market and serve to support the real economy. On the other hand, we should increase the earning effect of the stock market and solve the problem of enriching the people.

The quality improvement and market value promotion of listed companies complement each other. Liu Lisheng suggested that, on the one hand, it is necessary to gradually increase the professional and long-term investment of trust, financial management, insurance funds, public funds and private funds, especially pension funds, in the capital market, especially the proportion of pension funds entering the market, so as to make the investment in the capital market reach the world's average level.

On the other hand, we should establish the trust responsibility of listed companies. Listed companies should not only create more profits and dividends for shareholders, but also strive to do a good job in market value management and value promotion, and create capital gains for investors in the secondary market.

Chen Li, director of Sichuan Securities Research Institute, also suggested that to enhance the wealth management function of the capital market, it is necessary to increase the criminal responsibility for the crimes of fraudulent issuance of stocks, illegal disclosure, non disclosure of important information and providing false certificates, and at the same time, perfect and formulate corresponding compensation mechanism for the illegal behaviors of listed companies, so as to enhance the confidence of investors and make residents willing to take the initiative Funds are invested in the securities market.

Prevent the disorderly expansion of capital

In addition to strengthening the wealth management function of the capital market, the CSRC also followed closely the contents of the recent political bureau meeting and proposed "preventing the disorderly expansion of capital".

The CSRC said that financial innovation should be carried out under the premise of prudent supervision to prevent disorderly expansion of capital. Strictly control the entry of IPO and improve the supervision of shareholders' information disclosure. Strengthen regulatory coordination and information sharing to avoid regulatory vacuum.

Chen Li put forward that the proposal of "preventing the disorderly expansion of capital" is mainly to prevent some industries from using their own advantages to disrupt the market order, and to damage the rights and interests of consumers. This is also related to the rapid development of digital economy under the epidemic situation.

"To prevent the disorderly expansion of capital is anti-monopoly, it is to prevent the uncivilized growth of big capital, and to require capital to serve economic growth and social development." Tian Lihui said that at present, some enterprises have achieved rapid growth with the help of the impact of the epidemic. At the same time, they control the data elements close to the whole people through the Internet platform, and even try to challenge the current national financial regulatory system. At this time, it is necessary to guide the orderly growth of capital.

At the same time, China Securities Regulatory Commission (CSRC) has included "strictly controlling the entry of IPO and improving the supervision of shareholders' information disclosure" into the key work of capital market in the first year of the 14th five year plan.

"Even if the current comprehensive registration system continues to advance, it will help more enterprises to achieve direct financing, but it does not mean that the quality of listed companies will be reduced. On the contrary, it is necessary to strictly control the entry of IPO, adhere to the core of information disclosure, and objectively, fairly, comprehensively and accurately reflect the real situation of listed companies, so as to truly protect the interests of investors and realize the prosperity and stable development of the securities market. " Chen Li said.

In this regard, Tian Lihui also said that although China has realized the registration system in the science and technology innovation board and the growth enterprise market, and plans to gradually implement the registration system in the main board, small and medium-sized board, it does not mean that the regulatory authorities will no longer supervise and manage the issuance and listing. In fact, China's registration system is a registration system with information disclosure as its core. The company to be listed has the responsibility to make full and true information disclosure, including the information of shareholders. "The market has the right to know who is the actual controller of the company and who is the beneficiary of the listing."

"Shareholders' information needs to be disclosed in a penetrating way, instead of allowing traders to change their names and surnames and wear a vest." Tian Lihui believes that if it is not the true information disclosure or the quality of the trust paper has problems, the listing should be suspended or suspended. If it is not that the sector should accept the company, it should not allow the relevant enterprises to issue shares in order to enhance the market size.

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