China Securities Regulatory Commission previews ChiNext reform and refinancing overhaul under its 15th Five-Year capital market agenda

At a National People’s Congress press conference, China Securities Regulatory Commission Chair Wu Qing outlined the regulator’s priorities for implementing the 15th Five-Year Plan in capital markets, including strengthening market-stabilisation mechanisms and “long-term money, long-term investment” arrangements, improving the fit and inclusiveness of market rules and products for innovation financing, raising listed-company quality and investability, intensifying enforcement and investor protection, and deepening two-way opening. He also flagged two near-term measures being prepared: deeper reform of the ChiNext board and further optimisation of listed-company refinancing rules. Wu cited market and enforcement metrics from recent years, including CNY 64tn of equity and bond financing on exchange markets during the 14th Five-Year period, a 31.97% share of direct financing, A-share market capitalisation above CNY 110tn, and cash dividends of CNY 10.7tn, alongside 1,130 securities and futures cases handled over the past two years and CNY 30.8bn in fines and confiscations. The ChiNext reform plan would add a more precise and more inclusive set of listing standards, expand support for innovative firms including in new consumption and modern services, and transplant selected STAR Market reforms to ChiNext, including IPO pre-review for eligible high-quality innovators, allowing capital injections from existing shareholders for companies under review, and changes to IPO pricing. The refinancing package would further streamline review and registration, refine strategic-investor criteria to facilitate participation by longer-term funds such as social security, insurers and mutual funds, introduce shelf offerings, improve fixed-price private placements so pricing aligns more closely with market prices, extend the “light-asset, high R&D” criteria to the main board, and strengthen end-to-end supervision of fundraising plans and proceeds to deter misleading refinancing and misuse of funds. In parallel, the chair set out supervisory priorities covering cross-market and cross-border risk monitoring and tools to address external shocks, tougher prevention and punishment of financial statement fraud, and more intensive regulation of institutions and new business models. This included more detailed oversight of high-frequency quantitative trading, planned rules for derivatives trading, and a stance of “domestic prohibition and strict offshore supervision” for real-world asset tokenisation, alongside building out regulatory rules for crypto assets and expanding investor redress channels such as representative actions and advance compensation. The overall ChiNext reform plan is described as largely formed and will be refined and released for implementation when conditions are appropriate.