China Securities Regulatory Commission 2026 System Work Conference: Adhere to the priority of stability, consolidate the market's stable and positive momentum, and make timely countercyclical adjustments

# Source: Wall Street Insights

## China Securities Regulatory Commission (CSRC)

The meeting emphasized prioritizing stability to consolidate the capital market's positive momentum. It called for comprehensive strengthening of market monitoring and early warning systems, timely counter-cyclical adjustments, enhanced trading supervision and information disclosure oversight to further safeguard trading fairness, and severe crackdowns on illegal activities such as excessive speculation and market manipulation, resolutely preventing sharp market fluctuations.

On January 15, the China Securities Regulatory Commission held its 2026 System Work Conference to review the work in 2025, analyze the current situation, and formulate plans for 2026. Wu Qing, Secretary of the Party Committee and Chairman of the CSRC, attended the meeting and delivered a speech.

The meeting held that in 2025, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the CSRC system resolutely implemented the decisions and arrangements of the Party Central Committee and the State Council, and made coordinated efforts to prevent risks, strengthen supervision, and promote high-quality development. Working together with relevant parties, it stabilized the market, boosted confidence, and anchored expectations. Amid intertwined risks and challenges, the capital market forged ahead under pressure, moving toward innovation and improvement with significantly enhanced resilience and vitality. Key achievements included:

1.  Building a solid risk prevention barrier, advancing the development of a market stabilization mechanism with Chinese characteristics, achieving breakthroughs in attracting medium and long-term capital into the market, and fostering a recovery trend.

2.  Fully strengthening the "Five Major Supervisions", accelerating the establishment of a comprehensive prevention and punishment system against financial fraud, launching special campaigns against illegal activities in private equity funds, investigating and handling 701 securities and futures violation cases throughout the year with fines and confiscations totaling 15.47 billion yuan, and effectively improving the quality and efficiency of regulatory law enforcement.

3.  Deepening the comprehensive reform of investment and financing, introducing the "1+6" policy measures for the Sci-Tech Innovation Board reform, activating the third set of standards for the ChiNext Board, revising the Measures for the Administration of Major Asset Restructurings, and initiating the public fund reform. Listed companies made a total of 2.68 trillion yuan in cash dividends and share repurchases during the year, further accumulating momentum for high-quality development.

4.  Improving the equity, bond, and futures product and service system, with a total of 1.26 trillion yuan raised through IPOs and additional financings, 16.3 trillion yuan in various bonds issued in the exchange bond market, and 18 futures and options products listed smoothly throughout the year, effectively exerting the functions of the multi-level capital market.

5.  Accelerating the development of the legal system in key areas, jointly issuing guidelines with the Supreme People's Court on enforcing laws and judicial practices strictly and impartially to serve and ensure the high-quality development of the capital market, releasing opinions on strengthening the protection of small and medium-sized investors, and further strengthening the "safety net" for investor rights protection.

6.  Enhancing the communication power and influence of public opinion guidance, establishing and operating the China Capital Market Association, and further purifying the market's public opinion environment.

The meeting noted that over the past year, the CSRC system thoroughly studied and implemented General Secretary Xi Jinping's important thoughts on Party building and self-reform, promoted high-quality development through high-quality Party building, comprehensively strengthened Party building within the system, earnestly promoted the rectification of the central inspection, and conducted in-depth education on implementing the central eight-point regulation. It intensified efforts to promote the "Three Nos" (no desire, no opportunity, no ability to engage in corruption) in an integrated manner, strived to build a contingent of loyal, honest, and responsible cadres, and advanced the comprehensive and strict governance of the Party within the system to a deeper level. The Discipline Inspection and Supervision Group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed in the CSRC strengthened political supervision, carried out special governance, strictly investigated and handled a number of typical cases, and provided all-round support through strong supervision.

The meeting stressed that while the capital market is generally stable and improving, it still faces complex and severe challenges from intertwined internal and external risks and overlapping old and new contradictions. The CSRC system must thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and subsequent plenary sessions, earnestly implement the arrangements of the Central Economic Work Conference, and follow the requirements of the Central Financial Commission meeting and the National Financial Work Conference. Adhering to the principle of making progress while maintaining stability and improving quality and efficiency, focusing on the main line of preventing risks, strengthening supervision, and promoting high-quality development, it will continue to deepen the comprehensive reform of investment and financing in the capital market, improve the system's inclusiveness, adaptability, competitiveness, and attractiveness, strive to achieve effective qualitative improvement and reasonable quantitative growth, effectively enhance the market's inherent stability, better support the stability of employment, enterprises, the market, and expectations, and contribute actively to a sound start of the 15th Five-Year Plan period.

Key priorities for 2026 are:

1.  Prioritizing stability to consolidate the market's positive momentum: comprehensively strengthening market monitoring and early warning, making timely counter-cyclical adjustments, enhancing trading supervision and information disclosure oversight, further safeguarding trading fairness, severely cracking down on illegal activities such as excessive speculation and market manipulation, and resolutely preventing sharp market fluctuations. Continuing to deepen the public fund reform, expanding channels and methods for medium and long-term capital sources, introducing various products and risk management tools suitable for long-term investment, actively guiding long-term, rational, and value investment, and fully creating a market ecosystem of "long-term capital for long-term investment".

2.  Promoting reform to improve the quality and efficiency of serving high-quality development: enhancing the inclusiveness and adaptability of the multi-level equity market, launching the deepening reform of the ChiNext Board, advancing the implementation of the Sci-Tech Innovation Board reform, improving the convenience and flexibility of additional financing, and promoting the integrated high-quality development of the Beijing Stock Exchange and the National Equities Exchange and Quotations. Promoting the bond market to improve quality, adjust structure, and expand volume, and ensuring the smooth implementation of the pilot commercial real estate REITs. Steadily advancing the quality improvement of the futures market and strengthening the coordinated supervision of futures and spot markets.

3.  Enforcing strict supervision in accordance with the law to enhance the effectiveness and deterrence of regulatory law enforcement: further imposing strict market discipline, resolutely cracking down on malicious illegal activities such as financial fraud, price manipulation, and insider trading, smoothing the connection mechanism between administrative and criminal enforcement, and promoting the implementation of more typical cases such as representative litigation and pre-compensation. Urging industry institutions to focus on their main businesses, improve governance, and develop in a differentiated manner. Improving the regulatory system and mechanism for private equity funds. Strengthening technology-enabled supervision to improve the ability to detect clues and regulatory penetration.

4.  Strengthening the foundation to promote the value growth and governance improvement of listed companies: continuously improving the standardized operation of listed companies, accelerating the introduction of the Regulations on the Supervision of Listed Companies, fully implementing the newly revised Guidelines on Corporate Governance of Listed Companies, strengthening the restraint on the behavior of controlling shareholders and actual controllers, and improving institutional arrangements such as dividend distribution, share repurchase, equity incentives, and employee stock ownership. Stimulating the vitality of the merger and acquisition market, improving the full-chain supervision of restructurings, and taking multiple measures to promote the high-quality development of listed companies.

5.  Strengthening the home market to promote the two-way opening of the capital market to a deeper and higher level: accelerating the implementation of the optimization plan for qualified foreign investors, expanding the scope of opening up specific futures varieties, and improving the convenience of cross-border investment and financing. Improving the regulatory framework for overseas listings and enhancing the standardization, standardization, and transparency of filing management. Strengthening regulatory and risk prevention capabilities in an open environment and actively participating in international financial governance.

The meeting required in-depth study and implementation of the spirit of the Fifth Plenary Session of the 20th Central Commission for Discipline Inspection, adherence to and strengthening the Party's overall leadership over the capital market, and strengthening the coordination of the "Two Responsibilities". It called for advancing the comprehensive and strict governance of the Party within the CSRC system with higher standards and more practical measures, including:

-   Strengthening political guidance, earnestly implementing General Secretary Xi Jinping's important instructions and the decisions and arrangements of the Party Central Committee, and promoting the regular and long-term rectification of the central inspection.

-   Establishing a correct view of performance, emphasizing practical work, actual achievements, and tangible results, improving the assessment, evaluation, supervision, and supervision mechanism, and continuously correcting formalism and bureaucracy.

-   Strengthening responsibility implementation, advancing the fight against corruption with greater clarity and determination, deepening the promotion of reform and governance through cases, fully supporting and cooperating with the Discipline Inspection and Supervision Group stationed in the CSRC to consolidate and deepen the effects of special governance on corruption in key areas, continuously improving the supervision and restriction mechanism of public power, and formulating targeted policies and measures to effectively prevent and punish new and hidden corruption in the capital market.

-   Strengthening responsibility and initiative, accelerating the forging of a "Three Competent" regulatory team, selecting and appointing leading bodies at all levels, continuously improving the capacity building of the cadre team, carrying out regulatory accountability accurately and effectively, and strengthening care and support to continuously enhance the purity, professionalism, and combat effectiveness of the team.

Li Chao, Member of the Party Committee and Vice Chairman of the CSRC; Fan Dazhi, Secretary of the Discipline Inspection and Supervision Group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed in the CSRC and Member of the Party Committee of the CSRC; Chen Huaping and Li Ming, Members of the Party Committee and Vice Chairmen of the CSRC; and Chairmen of the Shanghai and Shenzhen Stock Exchanges attended the meeting. Principal responsible persons of all units in the CSRC system and all departments of the headquarters, as well as cadres at or above the deputy bureau level of the headquarters, participated in the meeting. Relevant comrades from the Discipline Inspection and Supervision Group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed in the CSRC, the Central Organization Department, the Office of the Central Financial and Economic Affairs Commission, the Office of the Central Financial Commission, the General Office of the State Council, the Ministry of Public Security, the Ministry of Finance, the National Audit Office, and the Supreme People's Procuratorate were invited to attend the meeting.

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