Road map for financial reform

A multi-layer capital market system will be built

Efforts will be made to raise the country's direct financing proportion, push for reforms of the stock issuance registration system, promote multi-channel equity financing, develop and standardize the domestic bond market, as well as improve insurance market and encourage financial innovation.

1.To raise the ratio of direct financing.

Vigorous efforts will be made to push for the transformation of the country's economic development mode and economic structural adjustment, and develop the stock, bond and other capital markets. There will also be vigorous efforts to expand the direct financing channels for enterprises and to optimize the structure of social financing. The market-oriented reform direction will be continued to reduce unnecessary administrative regulations, spark market motivation and its intrinsic vitality, and to cultivate commercial credit. Under the condition of respecting market principles, vigorous efforts will be made to boost various kinds of institutional investors in order to promote the diversification of the domestic financial market, products, investors and intermediaries. The concept of standardized development will be maintained to strengthen market restraint and the risk-sharing mechanism and further boost the transparency of market operations. At the same time, measures will be taken to promote the establishment of a sound framework of laws, financial regulations and oversight, as well as the adoption of sound financial and taxation policies.

2.To push forward reforms of the stock issuance registration system.

Based on full information disclosure, measures will be taken to reduce the administrative examinations and approval process for the qualification of share issuers. Measures will also be taken to strengthen the flexibility of the stock issuance system to reduce costs and increase financing efficiency. Efforts will be made to strengthen ongoing-event and post-event oversight and improve the current civilian and criminal accountability system to effectively check fraud in the listing process. Further improvements will be made to the current exit system for listed companies to raise the quality of listed corporations through the elimination of those that are not qualified. There will be crackdowns on malpractices, such as false statements, market rigging and insider dealings, and stronger market restraints and credit restraints on listed companies and intermediary agencies to protect the legitimate rights and interests of investors and to ensure the openness, equity and justice that the stock market desperately needs.

3.To push for multi-channel equity financing.

While continuously improving various stock exchange bourses, continuous efforts will be made to push for the construction of a multi-bourse equity market. Under a unified institutional framework, all provinces, municipalities and autonomous regions will be able to set up equity markets that are suitable for the local economic development conditions. Measures will be taken to guide private equity investment and venture capital investment to support the equity financing of innovative and growth enterprises. At the same time, differentiated institutional arrangements and a unified registration platform will be set up to push for the formation of an organic equity market system.