The China Securities Regulatory Commission (CSRC) will soon introduce policy measures to deepen the reform of the Science and Technology Innovation Board (STAR Market) and the ChiNext Board. Currently, the valuation level of A-shares remains at a relativel

The Shenzhen Stock Exchange (SZSE) hosted the two-day 2025 Global Investors Conference in Shenzhen from May 19 to 20. Themed "New Quality Productive Forces: New Investment Opportunities in China - Shenzhen's Open and Innovative Market," the conference showcased the investment value of Chinese assets and the A-share market through keynote speeches, roundtable discussions, company roadshows, and other formats.

Li Ming, Vice Chairman of the CSRC: The current valuation of A-shares remains relatively low

Li Ming, Vice Chairman of the China Securities Regulatory Commission (CSRC), stated at the 2025 Global Investors Conference hosted by the SZSE that the current valuation of A-shares remains relatively low. The price-to-earnings ratio of the CSI 300 Index stands at 12.6, significantly lower than major indices in overseas markets, further highlighting its allocation value.

Currently, the market value of A-shares held by various types of foreign investors remains stable at around 3 trillion yuan

Li Ming noted that currently, the market value of A-shares held by various types of foreign investors remains stable at around 3 trillion yuan, making them an important participating force in the A-share market. We believe that as the achievements of China's high-quality economic development become more evident and as the vitality of reform and opening up is further unleashed, China's capital market will undoubtedly become a crucial platform for more foreign investment and business development, offering more opportunities for global investors to share in the dividends of China's development.

Policy measures to deepen reforms of the STAR Market and ChiNext will be introduced in the near future

Li Ming stated that in the near future, we will also introduce policy measures to deepen reforms of the STAR Market and ChiNext, providing more suitable and inclusive institutional support for the innovative growth of enterprises.

We will optimize institutional arrangements for qualified foreign institutional investors and support eligible foreign institutions in applying for new businesses and launching new products

Li Ming stated that next, the CSRC will, in accordance with the deployment requirements for institutional opening-up, strengthen the top-level institutional design for opening up, focus on promoting the compatibility and interoperability of rules, regulations, management, and standards, and allow institutions to better play a fundamental role in advancing two-way opening up that stabilizes the foundation and benefits the long term. We will focus on enhancing the transparency and predictability of institutions, improving communication mechanisms with international investors, further enhancing the quality and efficiency of overseas listing filing management, optimizing institutional arrangements for qualified foreign institutional investors, supporting eligible foreign institutions in applying for new businesses and launching new products, and continuously improving the cross-border financial services system. We will focus on enhancing the systematic nature of opening up, strengthening the coordination of opening up in the stock, bond, and futures markets, increasing the supply of internationalized futures and options varieties, and enriching tools for asset allocation and risk management. We will focus on enhancing bilateral and multilateral cross-border regulatory cooperation, actively participating in the formulation of international standards and rules, further strengthening cooperation between the mainland and Hong Kong markets, and consolidating Hong Kong's status as an international financial center. We hope global investors will offer valuable insights and share beneficial experiences, working with us to create a market ecosystem where various types of funds are "willing to come, able to stay, and can thrive."

Medium and long-term funds, including those from social security, insurance, and annuities, have cumulatively net purchased over RMB 200 billion worth of A-shares this year.

Li Ming stated that since the beginning of this year, medium and long-term funds, including those from social security, insurance, and annuities, have cumulatively net purchased over RMB 200 billion worth of A-shares, reflecting the formation of a virtuous cycle where the accelerated inflow of medium and long-term funds coincides with a steady and rising stock market.

Last year, the total dividends paid by A-share companies and the amount spent on share buybacks both reached record highs.

In his speech, Li Ming stated that efforts will continue to guide publicly listed firms to actively enhance their investment value through cash dividends, share buybacks and increases in holdings, mergers and acquisitions, and restructuring. In 2024, A-share listed firms distributed a total of RMB 2.4 trillion in dividends and repurchased shares worth RMB 147.6 billion, both setting new historical highs. An increasing number of enterprises are distributing dividends multiple times a year. The dividend yield of the CSI 300 Index is approaching 3.6%, further enhancing the stability and predictability of returns to investors. Currently, the valuation level of A-shares remains relatively low, with the CSI 300 price-to-earnings ratio at 12.6, significantly lower than the major indices of overseas markets, further highlighting their allocation value.

Last year, high-tech enterprises accounted for over 90% of newly listed companies.

In his speech, Li Ming stated that since 2024, high-tech enterprises have accounted for over 90% of newly listed companies. The market capitalization of listed firms in strategic emerging industries across the entire market has exceeded 40%. A group of leading enterprises has rapidly emerged in advanced manufacturing, digital economy, green and low-carbon sectors, standing out in global competition and attracting widespread attention from global investors. Listed firms exhibit strong innovation momentum, with the total R&D expenses of physical listed firms reaching RMB 1.6 trillion in 2024, up 3.1% YoY. Over 800 listed firms have an R&D intensity exceeding 10%.

We will strengthen the top-level institutional design for the opening-up of the capital market and improve the quality and efficiency of overseas listing filing management.

Li Ming stated that China's capital market will remain steadfast in its opening-up efforts. In line with the deployment requirements for institutional opening-up, China will strengthen the top-level institutional design for opening-up, focusing on promoting compatibility and interoperability in rules, regulations, management, and standards, allowing institutions to better play a fundamental role in advancing two-way opening-up that anchors the foundation and benefits the long term. Efforts will be made to enhance the transparency and predictability of institutions, improve communication mechanisms with international investors, further enhance the quality and efficiency of overseas listing filing management, optimize institutional arrangements such as those for qualified foreign institutional investors, support eligible foreign institutions in applying for new businesses and launching new products, and continuously improve the cross-border financial services system.