CSRC: Strengthen the rule of law in the capital market and create a market environment conducive to rational investing, value investing, and long-term investing.

People’s Financial News, March 27 - On March 27, Cheng Hehong, Chief Lawyer 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 the next step for the CSRC will be to further strengthen the construction of the rule of law in the capital market, improve systems, establish mechanisms, and deeply promote rational investment, value investment, and long-term investment-related work.

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

Second, continue to advance the revision of the Securities Investment Fund Law, transforming the relevant practices and outcomes from public fund reforms into law, to promote the reform of the investment side, build top-tier investment institutions, enhance the professional capabilities and investment levels of institutional investors, and leverage the role of securities investment funds as a professional mainstay in fulfilling the responsibilities and missions of rational investment, value investment, and long-term investment, providing more robust legal guarantees.

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

Fourth, collaborate with relevant parties to thoroughly implement performance, assessment, compensation, tax, and other policy measures aimed at promoting rational investment, value investment, and long-term investment, further leveraging the positive effects of related policies in attracting long-term funds and enhancing the inherent stability of the market.

Fifth, organize the CSRC system to systematically sort out and evaluate the current normative documents of securities and futures regulations, as well as the regulatory provisions on issuance, listing, supervision of securities and futures fund management institutions, market trading, etc., and dynamically amend and improve them.

Sixth, strengthen daily regulatory guidance, ensure strict registration review for corporate issuance and listing, provide investors with more high-quality securities financial products with investment value; carry out a new round of special actions on corporate governance to better support investor participation in corporate governance; improve the quality of information disclosure to better serve 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 reduction of holdings and programmed trading, to create a fair market trading environment for all types of investments; strengthen oversight of the internal control, compliance, and business activities of securities and futures management institutions, such as investment banking, brokerage, asset management, margin financing, and investment consulting, to better fulfill the intermediary and professional roles of securities and futures management institutions in serving rational investment, value investment, and long-term investment.

Seventh, enforce the law strictly and enhance investor protection. Focus on punishing illegal securities and futures activities that infringe upon investor rights and disrupt market order, such as fraudulent issuance, financial fraud, market manipulation, insider trading, and defrauding customers. Those who commit crimes will be transferred to public security judicial authorities according to the law. Collaborate with judicial authorities to research and formulate judicial interpretations on civil damage compensation for insider trading and market manipulation, deeply advance the representative litigation work of securities, increase the application of advance compensation systems, and improve the effectiveness of investor publicity and education, integrating investor publicity and education more effectively into the client development and service processes of securities and futures management institutions.