stock market Photo:VCG

The head of China's top securities regulator on Wednesday expressed firm confidence in the stability and resilience of the Chinese capital market despite external uncertainties, and laid out comprehensive plans, including developing technology innovation bonds and attracting long-term funds, to ensure sound and stable development. 

"Whether we will face light breeze or heavy rain, strong wind or rough sea, we have all the conditions, confidence and ability to achieve the stable and healthy development of China's stock market," Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), told a press conference. 

Wu noted that since the beginning of April, the US government's tariff policy has severely impacted the international economic and trade order, and global financial markets have been in turmoil, which has also brought great pressure to the domestic capital market. However, thanks to a combination of stabilizing measures, after experiencing a sharp fluctuation in the early stage, which actually lasted only one day, the A-share market continued to rebound and stabilize, showing strong resilience and risk resistance, he said.

Asked about the US tariffs' impact A-share companies, Wu said that some listed companies inevitably face direct or indirect impact of varying degrees; however, as leading enterprises in China's economy, A-share listed companies have strong resilience and adaptability. To support firms to better navigate the challenges, Wu said that the CSRC is enhancing regulation while making every effort to help affected firms cope with the impact of tariffs.

The CSRC chief also detailed a comprehensive strategy to fortify the market, including new initiatives to boost science and technology innovation bonds and attract medium- and long-term funds. 

China is ramping up efforts to develop science and technology innovation bonds. By streamlining the issuance and registration process and enhancing credit support, it aims to offer comprehensive, continuous financial services to sci-tech enterprises, Wu said.

In a swift move, the People's Bank of China and the CSRC jointly issued an announcement related to supporting the issuance of science and technology innovation bonds. Financial institutions, science and technology enterprises, private equity investment institutions and venture capital investment institutions are allowed to issue science and technology innovation bonds to raise funds for investment and financing in the field of science and technology innovation, according to the announcement.

The regulators' statements clearly highlight their unwavering commitment to the capital market, which not only reassures investors but also nurtures buoyant market sentiment, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Wednesday.

The recently announced policies are crafted to stabilize the stock market, invigorating both its investment allure and financing functions. Particularly, the focus on scientific innovation, exemplified by the science and technology bonds, is pivotal to spur growth in emerging sectors, Xi Junyang said.

Wu also highlighted the push to bring medium- and long-term funds into the market with the release of an action plan to promote the high-quality development of public funds on Wednesday.

Among other measures, the CSRC will soon issue revised rules on major asset restructuring for listed companies to enhance the capital market's role as the main channel for mergers and acquisitions. Additional reforms will be introduced for the STAR Market and ChiNext Board to improve market structure and investor protection mechanisms. 

Wu also highlighted efforts to maintain market stability through dynamic risk contingency plans and gave full support for Central Huijin Investment Co to play the stabilizing role.

Promoting the high-quality development of public funds helps channel investments into truly rewarding enterprises, effectively nurturing "patient capital," Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Wednesday.

Amid growing global market uncertainty, Chinese assets are becoming increasingly attractive and valuable for investment. The Chinese market stands out for its reliability, backed by reliable economic growth, reliable macro policies and reliable institutional safeguards, Wu said.

Despite complex external challenges, China remains firmly committed to high-quality economic development. With more stable and predictable macro policies that are adjusted in a timely manner, foreign investors are becoming even more confident in participating in China's capital markets, Wu said.

China's resilient economic growth provides a reliable investment landscape with attractive returns, outperforming many global peers. Meanwhile, China has been steadily reducing foreign investment barriers, expanding market access and optimizing regulations, creating a more accessible and investor-friendly environment for international capital to seize long-term opportunities, Xi Junyang said.

Foreign financial institutions and investors play a significant role in China's A-share market, holding about 3 trillion yuan ($415.20 billion) in terms of A-share free-float market value through various channels, according to Wu.