Measures to bring financial market on to a healthier development track

Despite remarkable economic development over the past decade, the performance of China's stock market has been very mediocre inviting criticism from investors over its securities regulator.

That explains why the public has attached great importance to the meeting the China Securities Regulatory Commission held on Monday to roll out measures to further deepen the reform of the capital market and list key points of work for the remaining months of the year.

The CSRC said it will work harder to effectively maintain the smooth and steady operation of the capital market and make greater efforts to help the capital market serve the recovery of the real economy by reinforcing the foundation of the capital market, putting in place stricter supervision and management, and breaking institutional obstacles and structural problems.

In view of the recent volatility in China's A-share market and the serious insufficiency of investor confidence, these commitments from the top capital market watchdog are timely and also necessary.

At a time when China's economy is transitioning to high-quality development, it is necessary for the country's capital market to remove those institutional obstacles and structural problems through deepened reform to accelerate the building of a safe, standardized, transparent, open, dynamic, and resilient capital market that is commensurate with China's economic strength and status in the world.

At Monday's meeting, the CSRC vowed to establish a long-term mechanism to enhance the internal stability of the capital market to better serve the country's efforts for high-quality scientific and technological self-reliance and the development of new quality productive forces. It also said greater efforts will be made to enhance the inclusiveness and adaptability of the capital market system, improve support policies for private equity and venture capital, and enhance the service capacity for scientific and technological innovation enterprises. The CSRC will further improve the regulatory system and mechanism covering all participants in the market and all business areas, and smooth the channels for the protection and relief of investor rights.

All these measures, including a set of measures released by the State Council on June 15 to facilitate the high-quality development of venture capital firms, and the eight new measures issued by the CSRC four days later to deepen the reform of the STAR Market of the Shanghai bourse, are expected to help plug some existing loopholes in China's capital market, boost investor confidence, and bring the long-volatile market back onto a healthier and more sustainable development track.