Vice Premier Wang Qishan stressed the importance of building multi-tier capital markets and better serving the real economy
BEIJING, March 27 (Xinhua)—On March 27, Wang Qishan, Vice Premier and a member of the Political Bureau of the CPC Central Committee, inspected the trial platform for share transfer of non-listed companies at Zhongguancun in Beijing. He said that the over-the-counter (OTC) market is an important component in the multi-tier capital markets.
"It is necessary to comply with requirements of the 12th Five-year Plan (2011-2015) and the National Financial Work Conference, adhere to the principle of maintaining stability while making progress, and sum up the past experiences, so as to accelerate system reform and mechanism innovation," he said. "Efforts are also needed to explore building the OTC markets, raise the proportion of direct financing, optimize the financial structure, meet all kinds of investment and financing demands, and better serve the real economy."
Wang pointed out that China's capital markets have achieved significant progress in the past 20 plus years. In particular, new markets and businesses launched in recent years, including the Growth Enterprise Board (GEB), stock index futures, as well as margin trading and short selling, have played an important role in promoting the all-round social and economic development.
"However, China’s fledgling capital markets are still faced with many problems, such as unbalanced market structure, weak financial innovation and inadequate direct finance," he said. "But China's industrialization and urbanization are picking up pace, providing a good opportunity for the capital markets to grow. So we must tighten efforts to transform the financial development model, optimize the financial structure, allow the markets to play a basic role in resource allocation, and promote sound and rapid development of the capital markets."
Wang added that the Zhongguancun trial platform for share transfer of non-listed companies has operated smoothly. "The platform, designed for small- and medium-sized enterprises (SMEs), especially innovative and hi-growth ones, is characterized by high transparency and low threshold," he said. "The platform adhered to market-based rules, and allowed market participants, including self-regulatory organizations (SROs) and broker-dealers to play a leading role in share transfer."
"We must sum up those experiences, further improve market regulation and market infrastructure, such as entry and exit mechanisms and information disclosure framework, as an effort to lay a solid groundwork for building a unified national OTC market," said Wang.
Wang noted that risk control holds the key to the sound development of the capital markets. "It is necessary to strike a balance between government intervention and market operation, as well as between innovation and regulation," he said. "Efforts are also needed to further improve market rules, clarify regulatory responsibilities, strengthen coordination between financial regulators and local governments, crack down illegal activities and correct rule violations, and hold systematic and regional financial risks at bay."
Officials of the Beijing Municipal Government and the State Council joined in the inspection.