China’s Financial Market Priorities

BEIJING (Reuters) – China’s top financial market regulator stated that “stabilising the market, stabilising confidence and stabilising expectations” are priorities as the government seeks to enhance access to capital for leading technology.

Wu Qing, who has led the China Securities Regulatory Commission for a year during a period of declining stock markets, mentioned that efforts to restore confidence have been ongoing since late September, following a series of stimulus measures introduced by Beijing.

These measures support President Xi Jinping’s ambition to establish China as a “financial power” and create funding opportunities for innovative technology companies. Wu emphasized, “In today’s world, finance is a battleground for the great powers,” in comments published by Qiushi, the official policy journal of the Chinese Communist Party.

Since the announcement of monetary and fiscal stimuli in late September, China’s blue-chip CSI300 index has risen over 20%, although it has lost more than half its initial gains since then.

Many international investors are seeking clarity regarding U.S. President Donald Trump’s trade intentions towards China and how Beijing plans to respond. Trump recently imposed 10% tariffs on goods from China and 25% on imports from Canada and Mexico, but he also expressed optimism about reaching a trade agreement with China.

In his essay, Wu noted a shift in China’s capital markets focus from “scale expansion” to more targeted assistance for essential technologies. This aligns with Xi’s priorities concerning the development of industries such as artificial intelligence, biosciences, and robotics—areas dubbed “new productive forces.”

Despite being home to the world’s second-largest stock and bond markets and numerous listed companies, Wu lamented that there remains inadequate financing for innovation in China. He explained, “The structure is not reasonable. The scientific and technological content of listed companies is too low, and the market has not fully played its role in supporting innovation and industrial innovation.”