On November 8th , 2024, the CSRC held the 21st International Advisory Council (IAC) meeting in Shanghai with both in-person and remote attendance. The meeting was attended by IAC Chair Sir Howard Davies, Vice Chair Ms. Laura M. Cha, other IAC members and special guest. The CSRC Chairman Mr. Wu Qing, Vice Chairman Mr. Li Ming, as well as Ms. Xie Dong, Deputy Mayor of Shanghai Municipal People’s Government, among others, were also present at the meeting. The meeting was also joined by representatives from General Office of Central Financial Commission, General Office of the State Council, People’s Bank of China, National Financial Regulatory Administration, and other relevant agencies, as well as heads from CSRC departments, regional offices, and affiliated institutions.

The theme of the IAC meeting is “Capital Markets Contributing to Chinese Modernization: Expanding High-Level Two-Way Opening-Up and Advancing Market Reforms”. Extensive and in-depth discussions were held around three topics, including “opportunities and challenges faced by China’s capital markets amid evolving global landscapes”, “how to further improve the institutional mechanisms and regulatory regime of China’s capital markets, in order to spur the growth of new quality productive forces and drive high-quality social and economic development”, and “how to promote high-level institutional two-way opening-up of China’s capital markets in a prudent and well-ordered approach, so as to attract more long-term foreign investment into China”.

The IAC members applauded the determination and persistence of the Chinese government in firmly promoting the reform and opening-up, and believed that over the past year, great endeavor has been made in China’s capital markets to strengthen regulation, guard against risks, and promote high-quality development, which has contributed to the high-quality development of the Chinese economy and the cultivation of new quality productive forces. The IAC members paid close attention to the package of incremental policies recently rolled out by the Chinese government, as well as the improvement of existing policies, believing that these significant and encouraging policies are conducive to strengthening the resilience of the Chinese economy and improving global market’s expectation to the economic prospect of China, and can help boost the confidence of both domestic and international investors in the investment value of the A-share market, thus reinforcing the recovery of the capital markets. The IAC members spoke highly of the positive progress and outcomes achieved in the high-standard opening-up of China’s capital markets, and made suggestions including further optimizing the rules and mechanisms of the high-level institutional two-way opening-up, improving measures that facilitate foreign investment, enhancing the stability and transparency of policy-making, and stepping up communications and exchange with international investors.

The IAC members also proposed suggestions and consulting opinions on promoting further reform of China’s capital markets and leveraging the role of capital markets in supporting technological innovation; improving coordination in capital markets’ functions of investment and financing, and promoting virtuous interaction between the capital markets and long-term capital such as pension funds; improving investment value of listed companies, and enhancing their quality, shareholder return and corporate governance; strengthening institutional fundamentals and internal stability of capital markets; fostering venture capital, private equity and other patient capital and promoting green and sustainable finance.

Established in June 2004 upon the approval of the State Council, the IAC serves as the think tank of the CSRC. Consisting of former senior officials from overseas financial regulators, senior executives of financial institutions and renowned experts and academics, the IAC has been meeting annually to provide continuous insight on the development of China’s securities and futures markets, introducing the most recent international practices and experiences, and providing suggestions and consulting opinions to the CSRC, so as to contribute continuously to the CSRC’s efforts in drawing experiences from international markets, and in promoting the reform and opening-up as well as steady and sound development of China’s capital markets.