BEIJING, March 8, 2024 /PRNewswire/ -- In his first public appearance before media since taking his new post, Wu Qing, head of China's securities watchdog, outlined on Wednesday his plan to ensure the stable development of the capital market, the world's second largest, and vowed to beef up institutional buildup and to better ensure investor protection.
Chinese analysts noted that the institutional and holistic approach outlined by the head of China Securities Regulatory Commission (CSRC), who takes a harsh tone on illegal behavior while being considerate to small investors, is a pragmatic approach that suits the market reality, and is set to boost market confidence, stabilize expectations and shore up the overall investment value of China's capital market.
A number of delegates to the ongoing two sessions also contributed their thoughts on the topic, which is under the global media spotlight.
Wu's appearance at the press conference, held during the ongoing two sessions, along with several other top government officials in charge of China's economic and trade affairs, is one of the highlights of the political event, as ensuring the stability of the capital market was mentioned in the Government Work Report for the first time following a period of turbulence in the Chinese A-share market ahead of China's Spring Festival holidays in February.
The Government Work Report, delivered by Chinese Premier Li Qiang on Tuesday at the opening meeting of the second session of the 14th National People's Congress, set a growth target of around 5 percent for the country's economy in 2024.
Notably, the report pointed out that "the underlying stability of the capital market should be enhanced."
Giving his insight on how to ensure the stable development of the capital market, Wu the CSRC chairman, who is one day short of completing his first month in the new post, said enhancing institutional buildup and attracting long-term investment into the market will be among the measures to be taken to accomplish the task outlined in the Government Work Report.
Acknowledging that market operation has its own rules and should not be interfered with under normal circumstances, Wu told the press conference that the regulator "won't hesitate to act to correct extreme situations when the market seriously deviates from its fundamentals, irrational and violent fluctuations occur, liquidity is exhausted, market panic occurs and serious draining of confidence appears."
The first-time ever mentioning of enhancing the underlying stability of the capital market sends a strong signal of China's commitment to building itself into a financial powerhouse and sets the tone for the future development in related fields, delegates to the two sessions said.
Outside of the two sessions venue, Chinese scholars also shared their views on what Wu had said at the press conference.
Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Wednesday that the announcement made by CSRC chairman Wu, with an emphasis on both strength and toughness, laid out a clear-cut vision on improving the construction of fundamental institutions and better regulating the capital market, and is a "pragmatic approach in line with reality."
"The dual emphasis by the CSRC on strengthening regulation and bolstering investor protection are set to improve the stability and quality of the Chinese capital market," Dong noted.

Source prnewswire