Latest Statement from the CSRC! Related to Strengthening the Protection of Small and Medium-sized Investors and Supporting the Listing of High-quality Unprofitable Technology Enterprises

Cheng Hehong, Chief Counsel of the China Securities Regulatory Commission (CSRC), delivered a keynote speech at the 2025 Tianjin Wudadao Financial Forum on June 5.

We will expedite the research and formulation of the "Several Opinions on Further Strengthening the Protection of Small and Medium Investors in the Capital Market"

Cheng Hehong stated that the next step is to effectively protect investors. The trust and participation of a broad base of investors form the foundation for the capital market to support and serve technological innovation. It is essential to synchronize the deployment, arrangement, and implementation of financing services for technology innovation enterprises with the protection of investors' legitimate rights and interests. We will strengthen the disclosure of information related to the technological innovation attributes and investment risks of technology innovation enterprises, and improve the corresponding investor suitability system and mechanisms. We will actively guide and support enterprises, issuers, their controlling shareholders, actual controllers, and relevant securities firms to voluntarily undertake and fulfill commitments to compensate investors in advance in accordance with the law. We will continue to enhance the refined service and management capabilities of the 12386 service platform, and collaborate to promote the establishment of a regularized working mechanism for special representative litigation. We will support the launch of pilot work on arbitration in the securities and futures industry. We will expedite the research and formulation of a comprehensive policy document on investor protection under the "Several Opinions on Further Strengthening the Protection of Small and Medium Investors in the Capital Market."

Include high-quality enterprise science and technology innovation bonds in benchmark market-making categories

Cheng Hehong stated that the next step is to strengthen comprehensive equity-debt linkage services. We will promote the high-quality development of science and technology innovation corporate bonds, explore the development of more science and technology innovation-themed bonds, and actively encourage eligible enterprises to obtain financing through science and technology innovation bonds, thereby helping to reduce the financing costs of technology innovation enterprises. We will include high-quality enterprise science and technology innovation bonds in benchmark market-making categories. We will support the issuance of Real Estate Investment Trusts (REITs) for projects in areas such as new-type infrastructure including artificial intelligence, data centers, and smart cities, as well as technology innovation industrial parks, to facilitate the revitalization of existing assets and support the digital transformation of traditional infrastructure.

Promote the transition of fund share transfer business pilot programs to regular operations and expand the pilot program for physical stock distribution by funds to investors

Cheng Hehong stated that the next step is to cultivate and expand long-term and patient capital. We will guide private equity funds to optimize their long-term performance evaluation mechanisms to better align with the development characteristics of technology innovation enterprises. We will support the development of private equity secondary market funds (S funds), promote the transition of fund share transfer business pilot programs to regular operations, expand the pilot program for physical stock distribution by funds to investors, and facilitate a virtuous cycle of "fundraising, investment, management, and exit." We will continue to guide the entry of medium and long-term funds into the market and continuously improve the "long-term capital for long-term investment" system. We will adhere to the basic legal principles of equity investment and promote the establishment and improvement of a fairer and more reasonable legal relationship between private equity investment funds and technology innovation enterprises, as well as their founding shareholders.

The CSRC will revise and improve the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets, and establish a sound system for punishing dishonesty and incentivizing integrity.

Cheng Hehong stated that the next step is to build a more honest and friendly market environment. The high risks inherent in technological innovation also bring high risks to capital market activities that support and serve technological innovation. The greater the risk, the higher the required level of creditworthiness. In the process of the capital market supporting and serving technological innovation, it is necessary to further strengthen the construction of market integrity, and improve the integrity level of all market participants. The CSRC will revise and improve the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets, further enrich the capital market integrity archive database system, establish a sound system for punishing dishonesty and incentivizing integrity, severely crack down on serious acts of dishonesty such as fraudulent issuance, false information disclosure, and the failure of intermediaries to fulfill their duties diligently, enhance market transparency, leverage the verification and gatekeeping role of intermediary service institutions, and improve the professional ethics of practitioners. With a highly credible capital market, it will support and serve the development of high-level technological innovation.

This year, publicly listed firms in strategic emerging industries have disclosed over 140 asset restructuring cases, twice the number from the same period last year.

Cheng Hehong stated that in the field of mergers and acquisitions and restructuring, publicly listed firms in strategic emerging industries have disclosed over 140 asset restructuring cases this year, which is twice the number from the same period last year. In the field of bond financing, as of the end of April 2025, a total of 1,327 science and technology innovation bonds have been issued on the exchange market, with an issuance scale of 1.35 trillion yuan. In the field of private equity funds, the proportion of private equity and venture capital funds invested in strategic emerging industries has continued to increase. Currently, there are over 100,000 ongoing projects with an invested principal of over 4 trillion yuan.

The CSRC will provide greater support for the listing of high-quality unprofitable technology firms and actively and prudently promote the implementation of new cases under the fifth set of listing criteria for the Science and Technology Innovation Board.

Cheng Hehong, the CSRC's chief lawyer, delivered a keynote speech at the 2025 Tianjin Wudadao Financial Forum on June 5, stating that the next step is to deepen the reform of the stock issuance registration system. Adhering to information disclosure as the core, market intermediary verification and gatekeeping as the basis, and strict supervision and accountability as the guarantee, the CSRC will continue to advance the reform of the issuance and listing systems for the Science and Technology Innovation Board and the ChiNext Market, further enhancing the system's inclusiveness and adaptability. It will provide greater support for the listing of high-quality unprofitable technology firms and actively and prudently promote the implementation of new cases under the fifth set of listing criteria for the Science and Technology Innovation Board. The CSRC will adhere to the complementary and differentiated development of the Science and Technology Innovation Board, the ChiNext Market, and the Beijing Stock Exchange, further optimizing differentiated arrangements to better coordinate and leverage the diverse functions of each board in supporting technology firms, and strive to cover the different financing needs of technology firms at various types and stages of development.