China Securities Regulator to Deepen Listed-Company Governance Campaign

On September 10, the State Council Information Office held a press conference in its "Starting the 15th Five-Year Plan" series, briefing on the financial sector's implementation of the 15th Five-Year Plan and efforts to build a financial powerhouse. Answering questions, China Securities Regulatory Commission Vice Chairman Li Chao said the CSRC will next deepen a new round of special campaigns on listed-company governance, further tighten rules on share reductions by controlling shareholders and actual controllers, and strengthen oversight of directors and senior executives across the entire process of appointment, performance of duties, and departure.

Li said listed companies are the cornerstone of the capital market. Since the release and implementation of the new "Nine National Articles," the CSRC has continued to strengthen full-chain supervision of listed companies, driving continuous improvement in their quality, structure, and investment value. During the 15th Five-Year Plan period, the CSRC will continue this work. On optimizing structure, the CSRC has continued to strengthen regulation of issuance and listing, supporting the integrated development of technological and industrial innovation. Since 2024, technology-innovation companies have accounted for more than 90% of new listings, and the market value of the technology sector has increased by more than 80%. Since 2024, 108 companies have delisted in an orderly manner. Next, the CSRC will continue to strictly guard the entry point for issuance and listing, balance inclusiveness with strict regulation, keep enhancing the A-share market's appeal to quality companies, further intensify delisting supervision, give full play to the deterrent effect of mandatory delisting, strengthen post-delisting supervision and investor protection during the delisting process, and resolutely prevent companies from being "left to fend for themselves after delisting."

On combating fraud, the CSRC has strengthened inter-ministerial coordination and central-local collaboration, established a regular and long-term comprehensive mechanism for preventing and punishing financial fraud, and for three consecutive years carried out special campaigns against financial fraud by listed companies. A total of 247 financial-fraud cases have been handled, 156 administrative penalties issued, and fines and confiscations have approached RMB 10 billion. A total of 134 leads on suspected financial-fraud crimes have been transferred to public security authorities, and 84 civil lawsuits of various types have been supported. Next, the CSRC will continue to pursue punishment, prevention, and governance in parallel and coordinate administrative, civil, and criminal measures, further tightening the network for preventing, detecting, and punishing financial fraud, pushing for strict and swift handling of major cases, and working with relevant ministries and local governments on joint governance.

On improving governance, the CSRC has in recent years carried out multiple rounds of special campaigns on listed-company governance, revised the code of corporate governance for listed companies, and advanced reform of the independent director system. Next, the CSRC will deepen a new round of special campaigns on listed-company governance, further tighten rules on share reductions by controlling shareholders and actual controllers, strengthen oversight of directors and senior executives throughout the entire process of appointment, performance of duties, and departure, and guide more listed companies to accelerate the improvement of a modern enterprise system with Chinese characteristics. On increasing returns, since the introduction of the "Six M&A Measures" in 2024, listed companies have disclosed a total of 370 major asset restructurings. Since the new "Nine National Articles," listed companies have distributed dividends and conducted buybacks totaling more than RMB 7 trillion, with more than 2,000 companies paying dividends for five consecutive years and more than 1,000 companies conducting interim dividends.

People's Bank of China Deputy Governor Lu Lei said monetary policy is the central bank's primary responsibility, and advancing reform and improvement of the monetary policy framework is a key task the PBOC continues to pursue. During the 15th Five-Year Plan period, the PBOC will further optimize the modern monetary policy framework with Chinese characteristics, making it more scientific and forward-looking in objectives, tools, and transmission. On objectives, it will firmly maintain currency stability and thereby promote economic growth, effectively support high-quality development of the real economy, gradually play down quantity-based intermediate targets, and place greater emphasis on the role of interest rate regulation.

On tools, it will continue to improve the base money supply mechanism, refine the deposit reserve system, conduct open market operations more flexibly and precisely, continuously improve the market-based interest rate formation, regulation, and transmission mechanism, enhance the guiding role of the policy interest rate, guide short-term money market rates to move more steadily around the policy rate, and further smooth transmission from the central bank policy rate to market benchmark rates and then to various financial market rates. It will optimize the structural monetary policy tool system, improve tool design and management, and enhance the quality and effectiveness of financial services to the real economy.

China has no need and no intention to gain trade competitive advantage through currency depreciation. In recent years, as the export structure has transformed and upgraded, enterprises' bargaining power and exchange-rate risk management capabilities have continuously strengthened, and the sensitivity of China's trade to exchange rates has dropped significantly. At the same time, foreign trade enterprises are making greater use of exchange-rate hedging tools, and the share of RMB in trade settlement has continued to rise, further reducing trade sensitivity to exchange-rate fluctuations.

Macro policy coordination will be strengthened, the consistency of macro policy orientation enhanced, and a dynamic equilibrium among multiple macro-control objectives promoted. During the 15th Five-Year Plan period, the gradual transformation and optimization of China's monetary policy framework will better fit the profoundly changing economic and financial structure, conduct macro-control more effectively, support the real economy, and create a sound monetary and financial environment for high-quality development.