Market stability, support for innovation and stronger regulatory oversight to shape capital market development through 2030

SHENZHEN, China, Oct. 26, 2026 /PRNewswire/ -- Guosen Securities, one of China's leading securities firms and investment banks, expects the country's capital markets to make progress in three key areas during the 15th Five-Year Plan period (2026–2030): 

• Strengthening market stability: Raising standards among listed companies, encouraging long-term institutional investment and enhancing market resilience.
• Supporting economic growth and innovation: Reforming China's multi-tier capital market system to channel more financial resources toward emerging industries and other sectors associated with the development of new quality productive forces, strengthening the capital markets' ability to serve the real economy.
• Reinforcing regulatory oversight: Pursuing stricter regulatory enforcement and further opening China's capital markets to international participation to protect investors' rights and interests while increasing the markets' appeal to global investors.

By balancing stability, reform and effective regulation, China's capital markets are expected to play an increasingly important role in the country's modernization and create broader opportunities for international investors to participate in its economic development.

Strengthening Market Stability and Resilience

Market stability is essential to the effective functioning of capital markets and their ability to support economic development, Guosen Securities said.

During the 15th Five-Year Plan period, China is expected to accelerate reforms to investment and financing mechanisms, improve the alignment of capital supply with financing demand, and strengthen long-term arrangements designed to maintain market stability. Priorities will include raising standards among listed companies, deepening market-oriented reforms governing mergers, acquisitions and corporate restructurings, and expanding exit options for market participants. Together, these measures are intended to foster a more efficient market environment, with orderly market entry and exit, stronger competitive discipline and more sustainable market valuations.

China is also expected to strengthen the regulatory and institutional framework supporting long-term institutional investment. This will include addressing barriers that have limited participation by medium- and long-term institutional investors, including social security funds, insurance companies and wealth management funds. Reforms will also focus on developing performance evaluation frameworks that reflect longer investment horizons and encouraging patient capital, creating more favorable conditions for sustained investment in the capital markets.

Channeling Capital Toward the Real Economy and New Quality Productive Forces

Guosen Securities believes that the capital markets play an important role in financing the development of new quality productive forces and strengthening financial support for the real economy.

During the 15th Five-Year Plan period, China is expected to continue pursuing high-quality development while deepening reforms across its multi-tier capital market system, encompassing equities, bonds and futures. These reforms will seek to make market institutions more inclusive and responsive to the financing needs of different industries and businesses, while directing capital and other productive resources toward sectors associated with new quality productive forces, including artificial intelligence, biomedicine, clean energy technologies, aerospace and quantum technology.

These initiatives are intended to strengthen China's technological capabilities and self-reliance, modernize its industrial base, and accelerate the commercialization of scientific and technological innovations. By improving access to financing for innovative businesses and emerging industries, China's capital markets are expected to contribute more effectively to the development of new quality productive forces and the broader real economy.

Strengthening Regulatory Oversight While Expanding International Market Access

In the view of Guosen Securities, the effective regulatory enforcement is essential to maintaining market stability and supporting the long-term development of China's capital markets.

In recent years, Chinese regulators have adopted a zero-tolerance approach to securities violations, increased penalties for misconduct and strengthened investor protections. These efforts have sought to promote market transparency, fairness and integrity.

During the 15th Five-Year Plan period, China is expected to further strengthen its investor-centered regulatory framework by updating securities laws and regulations, expanding the use of technology to monitor market activity, and enhancing both off-site monitoring and on-site inspections. These efforts will focus on improving the detection of securities violations and ensuring more effective enforcement, including against fraudulent securities offerings, financial reporting fraud, unlawful share disposals and other breaches of securities laws and regulations.

China is expected to continue opening its capital markets to international investors through further institutional reforms and improvements to cross-border market connectivity. These measures are intended to increase the appeal of renminbi-denominated assets to international investors and facilitate greater foreign participation in China's capital markets.