In remarks to the Securities Association of China’s eighth member congress, the China Securities Regulatory Commission set out its expectations for the securities industry through the “15th Five-Year” period, calling for function-first, higher-quality development and the building of world-class investment banks and investment institutions. It also pointed to continuing weaknesses in firms’ overall strength, professional capability and innovation, compliance and risk controls, and industry culture. The Commission highlighted recent market and industry metrics, including 107 securities companies with total assets of CNY 14.5 trillion and net assets of CNY 3.3 trillion, and more than 240 million clients. It cited support for nearly 1,200 technology and innovation company listings, more than CNY 51 trillion of domestic equity and bond financing for companies, and more than CNY 2.5 trillion of underwriting for products such as science and technology innovation bonds and green bonds, alongside an A-share market capitalisation exceeding CNY 100 trillion. On supervision, it signalled stronger differentiated regulation and “support the strong and limit the weak”, including potential optimisation of risk control indicators and a measured opening of capital and leverage constraints for high-quality institutions, exploration of differentiated treatment for smaller and foreign securities firms in classification assessment and business access, and stricter enforcement for problem firms. It also flagged an expanded innovation pilot mechanism with more regulatory sandbox use cases, tighter monitoring of financial innovation to prevent uncontrolled risks, and a cautious stance on crypto-asset activities where risks cannot be clearly assessed or controlled. For the Securities Association of China, the Commission asked the incoming council and supervisory board to strengthen party leadership, improve governance as the next chair will be an industry representative, enhance self-regulatory systems and member services, and contribute to industry planning and research in support of “15th Five-Year” capital market development.
China Securities Regulatory Commission 2025-12-06
China Securities Regulatory Commission outlines 15th Five-Year agenda for securities firms and a support-the-strong limit-the-weak supervisory approach
The China Securities Regulatory Commission emphasized function-first, higher-quality development, and creating world-class investment banks during the "15th Five-Year" period. It noted firms' weaknesses, signaled stronger regulation, and stressed cautious monitoring of financial innovation and crypto-assets. The Commission urged the Securities Association of China to enhance governance and self-regulation.