By Tian Hui & Chen Daofu, Research Team on “Major Requirements and Strategic Points of High-quality Development”, DRC

Research Report, Special Issue, No.60, 2018 (Total 1627) 2018-12-25

Abstract: The high-quality development of economy puts forward higher requirements for the financing function of China’s multi-level capital market, including the need for more long-term funds, especially long-term equity funds, the need to optimize the allocation of resources to provide more financing support for innovative start-ups and the need for balanced development of financing and investment functions. At present, the financing function of China’s capital market is still unable to meet the requirements of high-quality development. Multiple constraints behind it are as follows: the ineffective competition among the various sectors, and the lack of stock transfer and docking system plus the absent of exit mechanism; the implementation of rigid approval for the qualification of stock issuance; the single standard and high threshold for stock issuance and listing; big public offerings and limited private offerings; a finite number of institutional investors, and poor regulatory environment. We need to further emancipate our minds and make breakthroughs in key reforms such as the new third board system, registration system and private offerings, so as to promote the financing function of China’s multi-level capital market system to a higher level and provide strong support for high-quality economic development.

Key words: multi-level capital market, financing function, high-quality development