China's capital market regulations are becoming increasingly stringent. With the establishment of a new regulatory framework—comprising the People's Bank of China (PBOC) for monetary policy and macro-prudential oversight, the State Administration of Financial Supervision (SAFS) for institutional and behavioral supervision, and the China Securities Regulatory Commission (CSRC) specializing in capital market regulation—China's financial system is now more robust and secure. This system has also fostered a higher level of openness to the global market, accompanied by stricter regulatory measures.

The Chinese government has placed significant emphasis on capital market oversight. Notably, in February 2024, Wu Qing was appointed as the chairman of the CSRC. Under his leadership, the CSRC introduced key policy documents, including the "Opinions on Strictly Controlling Issuance and Listing Access and Improving the Quality of Listed Companies from the Source (Trial)" and the "Opinions on Strengthening the Supervision of Listed Companies (Trial Implementation)." These policies focus on improving the quality of listed companies, enhancing the regulatory framework for corporate issuance and listing activities, strengthening investor protection, and tightening regulations on major shareholder activities. These measures are aimed at boosting investor confidence, curbing financial fraud, and fostering a healthier capital market environment.

In April 2024, China’s State Council issued the "Several Opinions on Strengthening Supervision and Preventing Risks to Promote the High-Quality Development of the Capital Market," which provided a blueprint for deepening reforms in the capital market. The CSRC and stock exchanges are continually refining the institutional framework governing market operations, making the capital market more standardized and efficient. As these reforms take effect, the quality of listed companies improves, investment activity grows, and the market becomes more stable.

These developments position China's securities industry for stronger business growth and lay the groundwork for sustainable development.

Please contact Mr. Yang BuXiang, Managing Partner at Pengsheng Certified Public Accountants with any questions you have about this IAB Country Report for China.