Regulator stresses market stabilization, zero-tolerance of illegal activities

China's top securities regulator highlighted the importance of consolidating the positive momentum of market stability, strictly investigating and punishing illegal activities such as excessive speculation and market manipulation, and resolutely preventing sharp market fluctuations.

At the 2026 work conference of the China Securities Regulatory Commission on Thursday, the regulator emphasized that while the overall capital market remains stable and improving, it still faces complex and severe challenges due to intertwining internal and external risks, as well as compounding old and new contradictions.

The commission must prioritize risk prevention, strong regulation and high-quality development to enhance market stability through sustained, comprehensive capital market reforms.

The meeting called for a comprehensive strengthening of market monitoring and early warning, timely implementation of counter-cyclical adjustments, reinforced regulation of trading and information disclosure, and further efforts to ensure fairness in trading.

It emphasized the need to persist in tackling reform challenges, with continuous improvements in the effectiveness of services for high-quality development. The meeting also called for enhancing the inclusiveness and adaptability of the multi-tiered equity market, launching the deepening of reforms of the ChiNext board, and continuing the implementation of reforms in the STAR Market.

It was noted at the meeting that efforts will be made to promote the integrated, high-quality development of the Beijing Stock Exchange and the National Equities Exchange and Quotations, while ensuring the smooth launch of a pilot program for commercial real estate investment trusts and steadily advancing the quality development of the futures market.

The commission also said that it will expedite the introduction of the regulation on the supervision of listed companies, fully implement the newly revised corporate governance guidelines for listed companies, and enhance the constraints on the behavior of controlling shareholders and actual controllers.

On Friday, the Shanghai Composite Index ended at 4,101.91, slipping by 0.26 percent. The Shenzhen Component Index declined by 0.18 percent, closing at 14,281.08, while the ChiNext Index, which tracks China's Nasdaq-style board of growth enterprises, fell 0.2 percent to 3,361.02.