By Zhu Hongming & Li Ganlin, Research Institute of Resources and Environment Policies, DRC

Research Report, No.308, 2020 (Total 6052) 2020-12-21

Abstract: During the 14th Five-Year Plan period, capital market needs to better serve the new development pattern of China, support the development of science and technology through self-reliance and self-improvement, expand domestic demand and advance international cooperation. Currently, China’s capital market is plagued by some weak points including the asymmetry between the performance of capital market and economic and social development, inadequate support by basic institutional arrangements and intermediary agencies, insufficient engagement with global market, and huge pressure in risk control. These problems make it difficult to serve China’s new development pattern. In order to meet the new requirements for the 14th Five-Year Plan, China’s capital market needs to improve its basic institutional arrangements to make them more adapted to economic transformation, cultivate more organizational investors to enhance the proportion of stock assets in residents’ wealth and pursue medium-to-long term development, align itself with the international standards to increase global exchanges, and nurture intermediary agencies with an independent and objective stance, a strong sense of responsibly and high international competitiveness. In addition, efforts need to focus on resolving capital market risks, enhancing the principal role of capital market and enforcing the upgrading of capital market to better serve the new development pattern.

Keywords:capital market, new development pattern, 14th Five-Year Plan