context: The 2023 Central Financial Work Conference identified five key areas—technology, green, inclusive, pension and digital finance—as essential for strengthening the PRC’s financial stability and sustainable growth. Following up, there have been growing calls for better integrating these sectors. In response, the China Securities Regulatory Commission released Implementation Opinions on advancing the five key financial areas in the capital market, emphasising support for new productive forces, deepening investment and financing reforms and directing resources toward these priority sectors.
Tian Lihui 田利辉 Nankai University Institute of Financial Development director emphasises that in terms of green finance improving green bond standards and unifying information disclosure rules will create a clear regulatory framework for market participants. Additionally, introducing more green-themed funds and developing low-carbon futures and options will expand financing channels for the green economy. Tian notes the PRC’s active role in shaping international sustainable finance standards, enhancing its global influence.
On inclusive finance, the Opinions directly address financing difficulties for SMEs
- expanding inclusive finance pilots at the Beijing Stock Exchange and the NEEQ (National Equities Exchange and Quotations)
- strengthening support for 'specialised and innovative' SMEs through regional equity markets
- enhancing financial services for agriculture by refining the 'insurance + futures' model and developing more agricultural futures products to support rural industries
Tian notes efforts to broaden investment channels for individuals, such as accelerating the transformation of securities and fund institutions toward wealth management and expanding the range of public fund products.
Critical steps are being taken to address the ageing population
- facilitating long-term capital inflows into capital markets, such as including qualified equity public funds in personal pension investment plans
- supporting silver economy businesses through stock and bond financing
- encouraging financial institutions to enhance services for elderly investors, including adapting apps and branch services to be more senior-friendly
- strengthening financial education for the elderly to reduce investment risks and improve pension financial literacy
Tian notes the need for a stronger digital financial infrastructure to support capital market development, through initiatives like
- promoting digital transformation among financial institutions
- encouraging fintech innovation pilots to improve financial services
- strengthening digital regulatory platforms for smarter supervision
- enhancing cybersecurity and data protection to safeguard the financial system
On technology finance, Zhou Xiaozhou 周小舟 CSRC (China Securities Regulatory Commission) spokesperson notes that CSRC has introduced policies such as the 16 measures for science and technology to continuously improve the regulatory framework for technological innovation.
Chen Li 陈雳 Chuancai Securities chief economist, emphasises the importance of interregional coordination, risk monitoring and policy differentiation to ensure effective implementation.