CSRC to attract long-term capital and support tech innovation

The China Securities Regulatory Commission, the country's top securities watchdog said on Thursday that it will make continued efforts to guide more long-term and patient capital inflow into the stock market, and introduce more financial products to better nurture the country's technological innovation.

Wu Qing, chairman of CSRC, made the comments during a news conference at the ongoing third session of the 14th National People's Congress in Beijing. He highlighted the growing global interest in Chinese tech companies, especially with the recent rise of AI startup DeepSeek.

Addressing the development of new quality productive forces, CSRC will better implement the basic mechanisms, such as the fifth set of listing standards for the STAR Market and the listing standards for unprofitable companies, to support the stock market debut of quality technology companies in a more precise manner, said Wu.

The six supporting rules for mergers and acquisitions, concerning valuation, pricing, review process and payment tools, will also be further completed, he said.

Private equity fund investors and managers are encouraged to step up their long-term support to technology companies so that the latter can focus on their main businesses, as well as research and development, said Wu.

The basic rules for PEs and venture capital will be completed, including optimizing exit channels and facilitating the development of the PE secondary market, he said.

Going public is not the only way that the capital market can support the technology companies, Wu pointed out. Bonds, convertible bonds, preferred shares, asset securitization, stock options and futures can provide financing support and related services.

Therefore, the CSRC will step up the supply of more financial products, which includes optimizing the registration process of technology innovation bonds and steadily developing the asset securitization of intellectual property rights, he said.

According to Wu, DeepSeek's rise to international fame has helped the global market to develop a new understanding of China's capabilities of technology innovation. This has, to some extent, resulted in the revaluation of China assets, which can be proven by the pursuit of certain companies in the A-share, Hong Kong and other markets recently.

The capital market can support industries and technology innovation in a unique and important way. Its appeal and vitality will rise accordingly with the rising number of technology companies and their strengthening capabilities. This will in turn enhance the capital market's strength in creating value for investors, he said.

While technology innovation can breed new economic drivers, it also comes with risks, as technology companies usually mean larger uncertainty in operation and longer period to become profitable, said Wu. Market participants should grow a comprehensive and calm understanding of such facts and use more methods and tools to manage risks, he added.

Following these developments, China's stock market saw significant gains, with the benchmark Shanghai Composite Index rising by 1.17 percent to close at 3381.1 points on Thursday, while the Shenzhen Component Index gained 1.77 percent, and technology-heavy ChiNext jumped 2.02 percent.