CSRC: By 2025, the scale of medium- and long-term funds entering the market will exceed 1 trillion yuan

On March 27, Chief Counsel Cheng Hehong of the China Securities Regulatory Commission (CSRC) stated at the Boao Forum for Asia 2026 Annual Conference sub-forum “Creating a Good Market Environment, Advocating Long-Term Value Investment” that in 2025, various types of medium- and long-term funds significantly increased their market entry efforts, with social security funds, insurance funds, annuity funds, public funds, and proprietary trading of securities firms collectively net buying A-shares exceeding 800 billion yuan. In addition, related funds purchasing equity funds and state-owned enterprises’ stock repurchases and increases resulted in an actual new market entry scale exceeding 1 trillion yuan. Among listed companies that are profitable and meet dividend distribution conditions, 97% have implemented dividends, with a total dividend amount of 2.55 trillion yuan, setting a new historical record.

CSRC: Strengthening the Rule of Law in Capital Markets to Create a Market Ecology Favorable to Rational Investment, Value Investment, and Long-Term Investment

On March 27, Chief Counsel Cheng Hehong of the CSRC stated at the Boao Forum for Asia 2026 Annual Conference sub-forum “Creating a Good Market Environment, Advocating Long-Term Value Investment” that in the next steps, the CSRC will further strengthen the rule of law in capital markets, improve systems, enhance mechanisms, and deeply promote work related to rational investment, value investment, and long-term investment.

First, organize the implementation of an evaluation of the effects of the Securities Law, research and summarize policies, rules, and experiences that are conducive to promoting rational investment, value investment, and long-term investment, and refine them into national legal provisions for the securities market to further solidify the legal foundation for rational investment, value investment, and long-term investment.

Second, continue to advance the revision of the Securities Investment Fund Law, converting the results of public fund reform practices into law, to promote investment-side reforms, build first-class investment institutions, enhance the professional capabilities and investment levels of institutional investors, and strengthen the role of securities investment funds as a professional main force in fulfilling the responsibilities and missions of rational investment, value investment, and long-term investment, providing stronger legal guarantees.

Third, promote the formulation of regulations on the supervision and management of listed companies, revise and improve the regulations on the supervision and management of securities companies, further improve the quality of listed companies, standardize and optimize the service activities of securities and futures operating institutions for investors, and create a more favorable market ecology for rational investment, value investment, and long-term investment.

Fourth, collaborate with relevant parties to deeply implement policies and measures related to performance, assessment, compensation, taxation, etc., that promote rational investment, value investment, and long-term investment, further enhancing the positive role of relevant policies in attracting long-term funds and increasing the inherent stability of the market.

Fifth, organize the CSRC system to systematically sort and evaluate existing normative documents of securities and futures regulations, as well as regulatory provisions in related business rules regarding issuance, listing, supervision of securities and futures fund operating institutions, and market transactions, and dynamically modify and improve them.

Sixth, strengthen daily regulatory guidance, ensuring a rigorous registration review process for company issuance and listing, providing investors with more high-quality securities financial products with investment value; carry out a new round of special actions on corporate governance to better ensure investors’ participation in corporate governance; improve the quality of information disclosure, better serving investors’ scientific and rational investment decisions; guide listed companies to implement cash dividends as required, solidifying the market foundation for value investment and long-term investment; enhance supervision and management of market trading activities such as share reductions and programmatic trading, creating a fair market trading environment for various types of investments; strengthen supervision and management of the internal control, compliance, and business activities of securities and futures operating institutions, including investment banking, brokerage, asset management, margin financing, and investment consulting, to better play the intermediary and professional role of securities and futures operating institutions in servicing rational investment, value investment, and long-term investment.

Seventh, enforce strict laws and strengthen investor protection. Focus on punishing illegal securities activities that infringe on investor rights and disturb market order, such as fraudulent issuance, financial fraud, market manipulation, insider trading, and defrauding clients. If a crime is constituted, it will be transferred to public security judicial authorities according to the law. Collaborate with judicial authorities to formulate judicial interpretations on civil damages for insider trading and market manipulation, deeply advance representative litigation work in securities, intensify the application of advance compensation systems, improve the quality and effectiveness of investor education work, and better integrate investor education into the business processes of securities and futures operating institutions in developing clients and providing services.

CSRC: The Legal Foundation for Rational Investment, Value Investment, and Long-Term Investment in Capital Markets is Further Solidified

On March 27, Chief Counsel Cheng Hehong of the CSRC stated at the Boao Forum for Asia 2026 Annual Conference sub-forum “Creating a Good Market Environment, Advocating Long-Term Value Investment” that the financial law draft has recently solicited public opinions, which explicitly states “support medium- and long-term funds entering the market, enhancing the inherent stability of the capital market,” further solidifying the legal foundation for rational investment, value investment, and long-term investment.

Cheng Hehong introduced that since the implementation of the new “National Nine Articles” for more than two years, the CSRC has successively formulated and revised over 50 regulations and normative documents, including the “Administrative Measures for Information Disclosure of Listed Companies,” “Interim Measures for the Management of Share Reductions by Shareholders of Listed Companies,” and “Several Opinions on Strengthening the Protection of Small and Medium Investors in Capital Markets”; in collaboration with relevant parties, issued the “Guiding Opinions on Promoting Medium- and Long-Term Funds into the Market”; released a series of policy documents including “Opinions on Rigorously Controlling the Admission Criteria for Issuance and Listing to Improve the Quality of Listed Companies from the Source,” “Opinions on Strictly Implementing the Delisting System,” and “Opinions on Strengthening the Supervision of Securities Companies and Public Funds to Accelerate the Construction of First-Class Investment Banks and Investment Institutions,” as well as “Securities Regulatory Guidelines No. 3 - Cash Dividends of Listed Companies”; promoted the improvement of long-cycle assessment mechanisms for insurance, annuity, and social security funds, advanced public fund reforms, further streamlined and optimized the interest binding between fund companies, fund managers, and investors, and gradually implemented improvements to relevant tax systems.

“While improving institutional rules, the CSRC, together with public security judicial authorities, has strengthened regulatory enforcement and severely cracked down on a large number of illegal securities crimes that harm investors’ legal rights, such as fraudulent issuance, financial fraud, market manipulation, and insider trading,” Cheng Hehong stated. In 2025, 701 cases of illegal securities and futures activities were investigated and dealt with, with fines totaling 15.474 billion yuan, greatly increasing the enforcement intensity; supported and collaborated with judicial authorities to enhance the adjudication of representative litigation cases in securities, with the Jin Tong Ling false statement civil compensation case resulting in the company compensating over 770 million yuan for investment losses to more than 40,000 investors, effectively protecting the legal rights of investors.

(Source: People’s Financial News)