The China Securities Regulatory Commission (CSRC) will further deepen all kinds of reforms in securities and futures markets. This is in an effort to steadily develop a multi-level capital market, enhancing the capital market’s capability to serve the real economy, stated Liu Xinhua, vice president of CSRC, at the 8th Annual Meeting of Chinese Securities Market held recently. He also said that the CSRC would coordinate with other related departments to revise the laws and regulations to facilitate long-term capital flow into the Chinese market.

Liu pointed out that as the capital market is the foundation of the factor market, in order to give full play to the resource allocation function of the capital market, to improve the fine abutment between technology and capital, a highly efficient and healthy multi-level market is in urgent need. Since the beginning of this year, he said, the establishment of such a system has been quickly carried out, and the depth and width of the market has been further developed.

Furthermore, Liu highlighted that as financing and investing are indivisible, we not only require a compatible market system but also a great number of professional investors. Only professional investors can most effectively assemble the social capital, thus optimize resource allocation in real economy.

“However, the investing and financing structures in the Chinese capital market are quite unreasonable, the development of professional institutions are seriously lagging,” said Liu, “which affects the functions of a multi-level market. Thus from now on CSRC will stress more on the development of institutional investors.”

Liu added that in the process of developing a multi-level market system, it is also important to form a supervision system adaptable to different information disclosures when serving different clients.