CSRC Chief Lawyer Cheng Hehong: Last year, the scale of new medium- and long-term funds entering the market exceeded 1 trillion yuan

Securities Times reporter Cheng Dan

On March 27, Cheng Hehong, the chief lawyer of the China Securities Regulatory Commission (CSRC), pointed out at the Boao Forum for Asia 2026 Annual Conference sub-forum on “Creating a Good Market Environment and Promoting Long-term Value Investment” that the CSRC will further strengthen the rule of law in the capital market, improve systems, enhance mechanisms, and deeply promote rational investment, value investment, and long-term investment-related work, further leveraging the positive role of relevant policies in attracting long-term capital and enhancing the inherent stability of the market.

Cheng Hehong stated that by 2025, various types of medium and long-term capital will significantly increase their market participation, with social security funds, insurance funds, annuity funds, public funds, and securities firms’ proprietary trading collectively net buying A-shares exceeding 800 billion yuan. Additionally, with relevant funds purchasing equity funds and central state-owned enterprises repurchasing and increasing their holdings, the actual new market entry scale of medium and long-term funds will exceed 1 trillion yuan. Among the listed companies that are profitable and meet dividend conditions, 97% have implemented dividends, with a total dividend amount of 2.55 trillion yuan, reaching a historical high.

Cheng Hehong introduced that since the introduction of the new “Nine Policies” more than two years ago, the CSRC has formulated and amended over 50 regulations and normative documents, including the “Administrative Measures for Information Disclosure of Listed Companies,” the “Interim Measures for Managing Share Reduction by Shareholders of Listed Companies,” and “Several Opinions on Strengthening the Protection of Small and Medium Investors in the Capital Market”; it has worked with relevant parties to issue “Guiding Opinions on Promoting the Entry of Medium and Long-term Funds into the Market” and implementation plans; and has released a series of policy documents, including “Opinions on Strictly Controlling the Entry Threshold for Issuing and Listing to Improve the Quality of Listed Companies from the Source,” “Opinions on Strictly Implementing the Delisting System,” “Opinions on Strengthening Regulation of Securities Companies and Public Funds to Accelerate the Construction of First-class Investment Banks and Investment Institutions,” and “Regulatory Guidelines for Listed Companies No. 3 – Cash Dividends of Listed Companies”; it has 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 mechanisms between fund companies, fund managers, and investors, and gradually implemented measures to improve related tax systems.

“While improving institutional rules, the CSRC, together with public security and judicial authorities, has strengthened regulatory enforcement, severely cracking down on a large number of securities violations and crimes that harm investors’ legitimate rights and interests, such as fraudulent issuance, financial fraud, market manipulation, and insider trading,” Cheng Hehong pointed out. In 2025, 701 securities and futures violations were investigated, with fines and confiscations amounting to 15.474 billion yuan, showing a significant increase in the severity of penalties; it has supported and cooperated with judicial authorities to intensify the trial of representative litigation cases in securities, with the Jin Tong Ling false statement civil compensation case resulting in the company compensating over 40,000 investors for investment losses exceeding 770 million yuan, effectively protecting investors’ legal rights and interests.

Cheng Hehong stated that in the next step, the CSRC will further strengthen the rule of law in the capital market, improve systems, enhance mechanisms, and deeply promote rational investment, value investment, and long-term investment-related work.