The National  Supervisory  Work Conference on Securities and Futures, held recently in Beijing, made a disposition for the major work in 2009  following  a summary of the reform and supervision of  the  capital market in 2008 and an analysis of the development trend of the capital market. Shang Fulin ,  Party Secretary and Chairman of the China Securities Regulatory Commission (CSRC) ,  pointed out that as  profound  changes  are currently taking place in   the  internal and external environment s of  China's capital market ,   it is  necessary  to further our understanding and practice of the  ‘ Scientific Outlook on Development ’ ; fully implement  the spirit of the 17th CPC National Congress, the third Plenary Session of the 17th CPC Central Committee and the Central Economic Work Conference ; unify our ideas, strengthen our confidence, insist on our reform, strive to make new achievements, and turn pressure into motive force and challenges into opportunities;  promot e   a  steady and sound development of the capital market ,   and work harder  for the development of China's econom y.

Shang said that the supervis ory  system on securities and futures has, under the leadership of the CPC Central Committee and the State Council, consolidated the results of  the  comprehensive reform in  the  recent years and achieved  an  overall stability and new development of the market through unswerving and unremitting  joint  efforts, despite the growing global financial crisis as well as the increasing uncertainties in macro economy and successive large natural disasters. First, the  construction of  fundamental systems  has been  strengthen ed   to  maintain  a  steady operation  of the market ; second, effective measures  have been taken to   cope with  the global financial crisis; third,  t he construction of emergency capability and information system safety  has been enhanced  to maintain  the stability of the  capital market; fourth, the market system and structure  have been improved and more  support  given  for economic development; fifth, market supervision  has been  intensif ied  for  a  sound development of market participants; sixth, risk control  has been  reinforce d   and the  futures market stead ily developed ; seventh,  the  construction  of the  legal system  for the market has been  enhance d   and  violation  act s  heavily attacked ;   eighth, international cooperation  has been   greatly promoted and  the opening-up  policy further implemented ;  ninth, the activities of studying and  practicing  the Scientific Outlook on Development have been carried out and the conscientiousness of promoting a scientific development of the capital market boosted; and  tenth, the party construction and  the  build ing of  a clean government  have been  reinforce d and  the c ontingent   construc tion and authority management   strengthen ed .  Pr actice  has  show n  that we have been on the right track in  the  recent years  by  enhanc ing  the market’s fundamental systems, adher ing  to the principle of short-and-long-term plans ,  taking all factors into consideration, tak ing  steps to promote the opening-up a s well as  ensur ing  the supervision and risk prevention. We should  treasure highly   our  hard- won  reform results and the effective development experience,  to  unswervingly promot e  the development of the capital market. 

Shang pointed out that, with the influence of the domestic and international economy and finance,  and many other factors,   the  market  is in a complicated situation and the  promot ion of the  reform and development  has become an  arduous task. However, China’s capital market is generally in a crucial  and  strategic period with many advantages: the implementation of the policies and measures of the “guaranteeing growth, expanding domestic demands,  and  adjusting structure” by the CPC Central Committee will  strongly  support the capital market’s development; the  positive  effects of the fundamental system construction in the   capital market has  further  consolidated the internal basis for a sound and steady market; the fundamental and  the  long-term trend of China’s economic development as well as the long-term positive market trend remain  unchanged ; the capital market has been supplied with development momentum by  the  fulfill ment of  the real economy’ s  reasonable needs; the change of  the  market environment has offered opportunit ies  for the structure adjustment and function improvement of the capital market. All  the  units and departments of the industry shall make an al l-round  analysis ,  correctly understand the new situation currently facing the market reform,  and  uni fy  ideas and actions  on the  bas is of  the Central Committee’s scientific judgment of the economic situation as well as its decisions and dispositions. We shall strive for new development and strengths despite the turmoil of global economy and finance by deepening the understanding of the importance and urgency of developing the capital market, grasping the opportunities and advantages facing the market development, carefully planning the reform and development measures , and  doing a solid job .

Shang stressed that, at present and in the  coming  period, the reform and supervision of the capital market should  be focused on the  expan sion of the  function of serving the national economy  as   well as on a new breakthrough in the  reform and innovation, new measures should  be taken  to prevent market risks and maintain market stability, and  new  progress  should be made  in improving supervision efficiency and enforcement. To reach the above goals, we should  further  improv e  the capability to serve the economic development  by  consci enti ously implement ing  the Scientific Outlook on Development  and  stick ing  to the coordination between the capital market and the real economy; further promote the steady development of the capital market by  simultaneously  safeguarding stability and facilitating development; further improve the market system and mechanism by simultaneously solving the  existing  predominant problems and  promoting a  long-term sound development; further implement the principle of “equality, fairness and openness”  by  maintaining the overall market interest with due consideration of individual’s interest  and  protect ing  the l egitimate  rights and interests of  the  investors; further optimize the development  path  of China’s capital market by deepening the reform and  promoting  the opening-up;  and  further improve  the  supervision efficiency by simultaneously enhancing supervision capability and market mechanism improvement.

According to Shang, in 2009 and  in  the period  to come , the securities and futures supervis ory  work shall, under the guidance of the “Deng Xiaoping Theory” and the important ideology of "Three Represents" together with the Scientific Outlook on Development,  adhere  to  the policy of  “guaranteeing growth, expanding domestic demands,  and  adjusting structure” ,  strengthen the  construction of the  fundamental  market  system construction,  and  deepen  the  reform  and  improve  the  mechanism, functions and supervision by emancipat ing  minds, seek ing  truth from facts  and  advanc ing  with the time. Emphasis should be laid on the protection of  the  investors’ l egitimate  rights and interests, the exertion of market mechanism, the improvement of market structure , and   the upgrading of  the reform and innovation  by upholding the  principle of “equality, fairness and openness”. All th ese  measures should  help to maintain and boost  the market confidence ,  and  to  form  an operating  system and mechanism for a stable market, so as to support the st eady  and relatively rapid growth of the national economy. We , therefore,  should focus on the following  aspects in our  work:

First, we should continue to lay a solid  foundation  for  a  stable operation of the market. Based on the market system construction, we should expand the sources of long-term fund for the market by working out policies and measures to attract various types of long-term fund s  to the stock market; consummate such policies as the cash dividend and repo of the listed companies to upgrade the market investment value; further perfect the block trading system for a better market supply and demand;  and  reinforce the risk monitoring, pre-warning and prevention to effectively prevent systematic risks.

Second, we should fully implement the spirit of the Central Economic Work Conference and the “30 Opinions of Finance” to serve the national economic development. We should promote the industry structure adjustment and upgrading by pushing the M&A and restructuring  of  listed companies ;  implement the strategy of constructing an innovation-oriented country   by introducing the growth enterprise board; further optimize the investment and financing structure th r ough the development of corporate bond market;  and  ease the difficulties  in  financing  for  small and   medium -sized  enterprises by giving them more support.

Third, we should steadily promote the market innovation and gradually expand the opening-up. We should further promote the issuance system reform, and improve the stock price formation and underwriting mechanism;  study  and establish  a  “qualified investor” system; further improv e  the system of agency share transfer to explore  a  multi-layer market; do a good job in the pilot of securities companies’ margin trading and securities lending;  and  further strengthen the tracking and monitoring as well as the research and handling of the international financial crisis.

Fourth, we should steadily develop the futures market and improve the capability to serve the national economy. We should increase new  varieties  of futures, prepare for the introduction of stock index futures and launch the steel and rice futures as soon as possible; strengthen the market’s fundamental systems  and  build a monitoring system for the  operation of the  futures market; reinforce the construction of farm produce’s futures market and improv e  the  product varieties of the  listed futures;  and  strengthen the monitoring of net capital and launch the classified supervision over futures companies.

Fifth, we should safeguard the stability and guide the public opinion for a safe market operation. We should improve the coordination mechanism of safeguarding the stability, the industry information safety supervision as well as the linkage mechanism of information safety and business supervision; strengthen the publicity and guide the public opinion, do a good job in  authority  announcement  of  important measures, and implement the responsibility system of guiding the public opinions within the jurisdiction; urge  the  listed companies as well as  the  securities and futures business institutions to  promptly  respond to the media’s questioning and clarify untru thful  information;  and  improve the coordination mechanism  for the  handl ing of  the cross-department al  bad information, and further regulate the securities and futures information publicity order.

Sixth, we should consolidate the legal system basis and crack down on violations. We should promote the issuance of the "Management Rules on Listed Companies' Supervision" and other administrative rules; launch the "CSRC Securities and Futures Illegality Reporting" system as soon as possible, perfect the administrative penalty work mechanism, and  enhance  the prosecution and exposure of  illegal  cases; do a good job in the maintenance and u tilization  of the securities and futures credit record system; promote the improvement of a long-term mechanism  to  crack down on illegal securities acti vities. .

Seventh, we should intensify and improve da y-to-day  supervision  and  improve the administrative efficiency. We should implement the "Administrative Measures of Securities and Futures Market Statistics"  and  do a good job in statistics analysis; nail down the intermediaries' responsibilities  and  focus on the on-the-spot inspection of the accounting firms; reinforce the supervision over the information disclosure of such market participants as the listed companies and securities and futures business institutions; deepen the construction of  the  listed companies' governance, promote the regular supervision of securities companies and improve the supervision of fund companies.

Eighth ,  we should strengthen the supervision contingent construction to improve the implementation  of supervision . We should continue to boost the study and practice of the Scientific  Outlook on  Development  and perform  rectification; strengthen the construction of the Party’ s  conduct and a clean government as well as the work-style of leaders and cadres;  and  reinforce the education and appointment  of cadres ,  and  establish a new mechanism to attract and retain the talents  to  provid e  organizational and  personnel assurance  for supervis ory work.  

Fan Fuchun ,  Vice Secretary of the CSRC Party Committee and CSRC Vice Chairman , made a  summary  of the  meeting  and forwarded some  specific  requirements  on the  implementation of the  resolutions of the meeting : 1.   to  be firm in  confidence . U nderstanding of the cause of the  reform and  development  of  capital market  should be further deepened. We should  weigh the situation, mak e  careful disposition, do a solid job and  minimize  the negative impact of the global financial crisis ; 2. t o  be  innovati ve. We should make an in-depth study on  the operating features of  the  all-floating market, understand the rules of the correlation between the capital market and the national economy, updat e  the method of thinking and working, integrat e  the understanding of market rules, the innovation of supervision ideas, the improvement of working method and the solving of development issues,  and  enhanc e  the forward-looking, pertinence and effectiveness of the supervision ; 3.  to improve the work style . We should  ensur e  the integration of supervision and service,  enhance our awareness in service , lay more emphasis on the improvement of market functions, bring into play the role of the intermediaries,  and  earnestly listen to the opinions and suggestions of  the  market participants ; 4.  to focus on  major  areas  of work. We should  protect the l egitimate  rights and interests of  the  investors, do a good job in the supervision  of  and service  for  the   listed companies,  and encourage  the listed companies to make more contributions  to  the  development,  employment and people’s livelihood  and also the  adjust ment of  structure ; 5.  to  lay  emphasis on practical results . We should  enhanc e  investigation and research, cherish the principle of seeking truth from reality, emphasiz e  the practical results, and ensur e  the implementation of the disposition for 2009.

Attending   the meeting were CSRC officials Li Xiaoxue, Gui Minjie, Zhuang Xinyi, Yao Gang, Liu Xinua, Jiang Yang and Zhu Congjiu, representatives from CSRC departments, regional bureaus, securities and futures exchanges, securities depository and clearing corporations, securities investor protection fund companies, futures margin monitoring center, futures and securities associations, securities and futures business institutions, and representatives from  the  relevant departments of the CPC Central Committee, the National People's Congress, the State Council and the Supreme People’s Court as well as representatives from the press.