Wu Qing Responds to Market Concerns: Six Brokerage Firms Provide Immediate Analysis

On March 6, at the Fourth Session of the 14th National People’s Congress, during the economic-themed press conference, CSRC Chairman Wu Qing delivered an important speech, releasing a series of significant policy signals related to the long-term development of the capital market, which attracted high market attention. Several securities firms promptly followed up with in-depth analysis of the strategic intentions and implementation paths behind the policies.

Lu Zhe, Chief Economist at Dongwu Securities, believes that the two major incremental policies announced—deepening the reform of the Growth Enterprise Market (GEM) and optimizing the refinancing mechanism—are key upgrades to serve new productive forces in the capital market. They aim to address current institutional shortcomings and improve the service system for the long term, further solidifying the foundation for the capital market to serve the real economy, providing stronger capital support for emerging industries and traditional industry transformation.

Southwest Securities and Huachuang Securities further elaborated on the systematic path of capital market reform. Southwest Securities believes that the reform blueprint for the first year of the 14th Five-Year Plan will, through improving market stability mechanisms, strengthening regulatory enforcement, deepening investment and financing reforms, and expanding institutional opening, achieve comprehensive leaps in market size, structure, and quality, precisely serving new productive forces and integrating into the global financial system.

Xu Kang, Deputy Director and Chief Financial Analyst at Huachuang Securities, summarized two main reform themes: first, deepening GEM reform by introducing more precise and inclusive listing standards to support new industries and business models; second, optimizing the review and registration mechanism for refinancing.

Wu Kaida, Chief Strategist at Tianfeng Securities, stated in a research report that the overall content of this economic-themed release was pragmatic, detailing many aspects of the previous government work report and opening space for subsequent incremental policies.

Yuan Chuang, Chief Economist at Caixin Securities, pointed out that the latest regulatory statements have clarified the direction for capital market work in 2026. The foundation for high-quality market development is continuously being strengthened, reflected in improving the investability of listed companies, enhancing functions supporting new productive forces, and deepening refinancing mechanism reforms.

Long Hongliang, Chief Economist at Wanlian Securities, believes that the deepening reform of A-shares has achieved solid results, with the market shifting from primarily financing to a balanced development of investment and financing. Institutional reforms will be crucial for China to become a major player in these emerging industries globally. Additionally, related reforms will better support the development of new consumption.

All viewpoints converge into a clear consensus: through rule of law, deepening reforms, and two-way opening, China’s capital market is progressing toward comprehensive improvements in scale, structure, and quality, aiming to build a modern financial market with more complete functions, healthier ecology, and stronger global competitiveness.

Southwest Securities: The ultimate goal is to achieve comprehensive leaps in scale, structure, and quality

Southwest Securities believes that Wu Qing systematically explained the reform path and regulatory ideas for the capital market in the first year of the 14th Five-Year Plan. The internal logic is to strengthen market stability and fairness by improving stability mechanisms and regulatory enforcement (addressing “good or not good”); on this basis, deepen investment and financing reforms and expand institutional opening to optimize market structure and functions, precisely serve new productive forces, and integrate into the global financial system (addressing “strong or not strong”).

The ultimate goal is to realize comprehensive leaps in scale, structure, and quality, enabling the capital market to better serve the real economy, increase residents’ property income, and contribute to building a strong financial nation. Future highlights include whether these policies can generate stronger synergistic effects; whether the cultivation of “patient capital” can truly break through the “long-term money not lasting” dilemma; and how China’s capital market can balance openness, development, and security amid complex international environments, continuously enhancing its global competitiveness and attractiveness.

Southwest Securities emphasizes that rule of law is the core of regulatory enforcement and investor protection. Deepening reform is the core driver for serving new productive forces. Two-way opening is the necessary path to enhance China’s asset attractiveness. Stability is the institutional guarantee for increasing market resilience.

Southwest Securities concludes that the reform blueprint for the first year of the 14th Five-Year Plan has already been laid out. Strengthening resilience through stability mechanisms, stimulating vitality through institutional reforms, and safeguarding fairness with strict enforcement will create a more functional, healthier, and more precisely serving modern capital market, injecting continuous momentum into high-quality economic development.

Huachuang Securities’ Xu Kang: Reform focuses on two main lines

Xu Kang believes that the main two lines of capital market reform are:

1. Deepening GEM reform, with relevant plans to be announced at an appropriate time. This includes establishing more precise and inclusive listing standards to support new industries, new business models, new technologies, and high-quality innovative startups in new consumption and modern services; replicating and promoting the experience of the STAR Market reform, implementing pre-IPO review for qualified innovative companies (especially those with breakthroughs in core technologies); allowing eligible companies under review to increase capital and share issuance, optimizing new share pricing; and establishing a comprehensive system from listing recommendation, review, to full-process regulation.

2. Optimizing the review and registration mechanism for refinancing, with measures already issued by the Shanghai, Shenzhen, and Beijing stock exchanges. This involves enhancing institutional inclusiveness, refining strategic investor standards (facilitating participation by social security, insurance, public funds, and other long-term funds), launching shelf issuance, improving lock-in price increase mechanisms; emphasizing support for high-quality and technological innovation companies by significantly improving review efficiency, expanding the recognition standards for lightweight, high R&D investment companies on the STAR and GEM to the main board, relaxing refinancing limits for R&D, and shortening refinancing intervals; strengthening full-process regulation to protect investors’ rights and interests.

Dongwu Securities’ Lu Zhe: Capital market safeguards industry transformation towards new growth

Lu Zhe’s research report states that deepening GEM reform and optimizing refinancing mechanisms are two incremental policies aimed at strengthening services for new productive forces.

The four features of these incremental policies are synergy, inclusiveness, guidance, and continuity. Sector synergy is prominent, supporting innovation across the entire market; institutional inclusiveness continues to improve, aligning with the development laws of innovative enterprises; resource allocation efficiency is optimized, reinforcing support for superior companies and limiting inferior ones; and the combination of stock and incremental policies creates a force that empowers high-quality development.

The launch of these two major incremental policies is a key move for the CSRC to implement the requirements for developing new productive forces and deepen investment and financing reforms. Its core significance lies in shifting the capital market from scale expansion to quality enhancement, upgrading from supporting only science and technology innovation in specific sectors to a comprehensive market upgrade. Based on past policy outcomes, these policies will further strengthen the integration of the capital market with technological innovation and industrial upgrading, providing more ample capital support for emerging and future industries.

From a market development perspective, after policy implementation, the technological narrative of the A-share market will be further enriched, and the market’s service capacity for new productive forces will significantly improve. The continuous introduction of medium- and long-term funds and strengthened full-process regulation will further solidify the foundation for stable market development, enhance resilience, and increase international attractiveness. Additionally, the policy explicitly states that “support for technological innovation in the capital market is a gradual process,” encouraging a market environment that promotes innovation and tolerates failure, creating a better capital environment for tech startups and promoting China’s capital market to play a greater role in serving modernization.

Tianfeng Securities’ Wu Kaida: Improving the coordinated functions of investment and financing in the capital market

Wu Kaida’s research report notes that five ministries and commissions are jointly implementing measures to stabilize the economy, with the finance sector maintaining a “more proactive” tone, continuing appropriate easing of monetary policy, and improving the coordinated functions of investment and financing in the capital market. Domestic demand remains the top priority this year, with efforts in four areas to achieve expected goals.

In terms of the capital market, Wu Qing states that new improvements will be made in market resilience and stability, institutional inclusiveness, quality of listed companies, regulatory enforcement effectiveness, and levels of opening-up.

Regarding services for technological innovation and new productive forces, Wu Qing announced two upcoming measures: first, deepening GEM reform; second, optimizing the refinancing mechanism. On risk prevention, five key areas are emphasized: first, building a strong risk defense line; second, consolidating and improving the effectiveness of anti-fraud measures; third, guiding industry institutions to focus on core businesses and develop规范; fourth, strengthening regulation of new business models; and fifth, tightening the protection of investors’ legal rights and interests.

Caixin Securities’ Yuan Chuang: The foundation for high-quality development of the capital market is continuously being strengthened

Yuan Chuang, Chief Economist at Caixin Securities, pointed out that Wu Qing’s speech and responses to questions have set the direction for capital market work in 2026, with the foundation for high-quality development continuously being reinforced.

To improve the investability of listed companies, Yuan Chuang suggests strengthening regulatory enforcement to prevent “bad money driving out good”; encouraging value creation through active M&A and restructuring to promote resource efficiency and sustained growth of high-quality companies; and increasing shareholder returns to foster a win-win situation among the market, listed entities, and investors.

Yuan Chuang believes that the functions of the capital market in supporting new productive forces are continuously strengthening. The reform of GEM will better serve the development of growth-oriented innovative companies. The new listing standards for GEM are likely to better reflect features like “new business models” and “new commercial patterns,” with provisions on business model feasibility, social value, revenue growth, and cash flow levels.

Regarding refinancing reforms, Yuan Chuang states that as the refinancing system continues to improve, the A-share market will better serve as an incubator and accelerator for technological innovation.

Wanlian Securities’ Long Hongliang: Further optimizing A-share listing standards is particularly necessary

Long Hongliang, Chief Economist at Wanlian Securities, analyzes that deepening reforms in A-shares have achieved solid results, shifting from a focus on financing to a balanced emphasis on investment returns and financing, fostering a virtuous cycle of investment and financing.

He believes that supporting China’s transition to high-quality development and capturing the global technological strategic high ground requires the stock market’s pivotal role, serving as the core venue for long-term investment returns for various investors. Due to the industry characteristics of emerging technologies, their development and technological attributes are not fully compatible with traditional A-share listing standards. Therefore, further optimizing these standards to be more inclusive and aligned with future tech tracks is especially necessary, ensuring that high-quality tech companies remain listed in A-shares, increasing the market’s technological content and better reflecting China’s achievements in technological transformation.

Long Hongliang states that the long-term development of six emerging pillar industries and six future industries depends on the support of the capital market. Institutional reforms in A-shares will be crucial for China to become a major global player in these emerging sectors.

He also notes that recent growth in new consumption has become an important innovation and growth point in the consumer sector, further boosting domestic demand. Future reforms in listing standards will better support the development of new consumption.

(Article source: Caixin News)