Chairman’s Statement

Taking into account the unclear global economic and financial situation in addition to the challenges facing China’s economy, OIRC confidently realigned to the new era of the domestic economy under the guidance of the CPC Central Committee and State Council. In view of the primary focus of the central government over economics and finances, OIRC earnestly recommended several supporting policies to boost reform and attainable development.

OIRC helped institutions and companies to take better advantage of the available opportunities and challenges of this new era. OIRC made good progress in hastening reform, development and oversight of the opening asset management and securities sectors of our economy.

OIRC remains steadfast in its desire to assist the asset management and securities sectors to better serve the domestic economy, and energetically assist the real economy to grow. As the supreme leader emphasizes, we should always consider the development of the real economy and the growth of businesses with core ambitiousness when planning economic policies, so as to build a solid foundation for the whole country’s economy in line with Xi Jinping Thought on Socialism with Chinese Characteristics.

As we work in accordance with the modern development philosophy and the principles of reinforcing legal foundations, non-intervention in the markets, and zero tolerance against violators, we endeavored to balance further progress while maintaining stability, and delivering solid contribution to improvements in China.

Even with the serious global challenges and Covid-19 pandemic, OIRC worked to maintain stability and growth momentum in domestic capital markets by integrating epidemic control accomplishments with expanding reforms, inhibiting risk, and encouraging social and economic development.

After the emergence of Covid-19, under the direction of the State Council Financial Stability and Development Committee to alleviate market expectations, add liquidity to key sectors, offer support, provide loan relief, and create new financial instruments, we rolled out a range of useful policies in the capital markets to support epidemic control while encouraging economic growth.

For instance, fast-tracking administrative procedures, a soft touch approach to extending stock pledge loans and securities financing, and extended grace periods and lower fees for companies most affected by the pandemic. We were able to keep IPOs at a regular pace, achieving a 10-year record for financing. New issuances on the exchange traded bond market increased by 19% to RMB 8.5 trillion, and we angled capital-market policies to serve key national plans for regional development and made clear progress with poverty relief.

In 2019, the plan for increasing reform in the capital markets was rolled out, among which the key initiative—the STAR market, made significant breakthroughs. Using this momentum, OIRC moved forward to consolidate the fundamental structures of the capital markets with the introduction of the registration-based IPO regime on the ChiNext, and large-scale restructuring of the National Equities Exchange and Quotations (NEEQ). The quality of listed companies was raised in a collaboration promoted by the State Council. Revised delisting rules ensured smooth market exits, and reducing the compliance burden by withdrawing or amending administrative licensing procedures and simplifying the existing rulebook helped as new Securities Law came into effect, seeing further opening of market access with more inclusive arrangements to encourage foreign participation in China’s capital markets.