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On March 13, the central government announced the outline of its 15th Five-Year Plan, which emphasizes a steady and cautious expansion of financial market connectivity. This includes refining the Qualified Foreign Institutional Investor program, enlarging the scope of investable products, and promoting cross-border direct financing for qualifying companies.
The plan advocates for the development of a financial system that aligns with technological progress, focusing on refining core mechanisms such as issuance and listing procedures, information transparency, mergers and acquisitions, and delisting processes.
Additionally, the country aims to increase openness in capital projects, expand avenues for foreign investment in securities markets, support the development of a multi-tiered cross-strait market, and encourage eligible Taiwanese companies to list on mainland exchanges.
The outline also highlights the importance of diversifying foreign investment approaches, enhancing management of foreign mergers and acquisitions, and broadening access for foreign investors in the securities sector.
To build a robust financial nation, the plan calls for deeper reforms in investment and financing, increasing the adaptability and inclusiveness of capital market systems, and boosting the share of direct financing. Efforts to diversify equity financing, accelerate the development of multi-level bond markets, and promote futures, derivatives, and asset securitization are also underscored. Strengthening trading oversight and protecting investors are additional priorities.
The government intends to foster patient capital and fine-tune policies that encourage medium- and long-term funds to enter the market. It plans to optimize the financial institution framework, support various financial entities in focusing on their core competencies, enhance governance, and differentiation in growth strategies.
Support will also target large state-owned financial firms to improve their comprehensive service offerings, with strict regulatory standards imposed on smaller banks and financial institutions. The development of top-tier investment banks and fund managers remains a key focus.
The China Securities and Regulatory Commission announced that it will closely monitor global financial shifts, strengthen oversight of the interactions between domestic and international markets, and improve the stability mechanisms unique to China. There is also an emphasis on refining governance standards for listed companies to enhance market stability.
Furthermore, efforts will be made to advance the reform of the ChiNext technology board, streamline refinancing policies, broaden exit options for private equity and venture capital investments, and encourage early-stage, long-term investments by social capital in innovative technologies.
Regulatory enforcement will be reinforced to target major violations, including financial fraud, market manipulation, insider trading, and false disclosures. The legal framework governing the capital market will be continuously improved, with a focus on investor protection and strengthening enforcement effectiveness to serve as a robust deterrent.
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