On Thursday, September 10th at 3 PM, the State Council Information Office convened a press conference under the "15th Five-Year Plan Kickoff" series. Deputy Governor of the People's Bank of China, Lu Lei, Deputy Administrator of the National Financial Regulatory Administration, Cong Lin, Vice Chairman of the China Securities Regulatory Commission, Li Chao, and the NFRA's spokesperson and Deputy Administrator of the State Administration of Foreign Exchange, Li Bin, detailed the financial sector's implementation strategies for the 15th Five-Year Plan and discussed efforts to build a stronger financial system.

Deputy Governor Lu Lei announced that the "15th Five-Year Plan for Building a Strong Financial Nation" has been officially released. To support its implementation, the People's Bank of China has issued its own reform and development plan alongside nine specific action plans. The overarching goals are set for 2030, aiming for effective financial policy coordination and enhanced international competitiveness, with the vision of a fully established modern financial system with Chinese characteristics by 2035.

CSRC Charts Course for Capital Market Development

At the State Council Information Office briefing, CSRC Vice Chairman Li Chao outlined the commission's commitment to accelerating a new round of capital market reforms. The goal is to establish a new landscape of high-quality development and significantly boost the market's overall strength and global competitiveness by 2030, which will coincide with the 40th anniversary of China's capital markets.

Vice Chairman Li Chao emphasized efforts to bolster the market's internal stability. He stated the CSRC will build on past experiences, strengthen market stabilization mechanisms, and expand stabilizing forces. This includes broadening the sources, channels, and methods for medium and long-term capital to enter the market and perfecting the mechanisms that encourage long-term investment. The focus will also remain on rigorous risk monitoring and comprehensive assessment to ensure the market operates smoothly.

Li Chao reported that since the beginning of the year, medium and long-term investors such as social security funds, pension funds, and insurance funds have achieved net purchases of A-shares exceeding 600 billion yuan. Their holdings of A-share market value have increased by 12.5% compared to the end of 2025.

The CSRC Vice Chairman also indicated that the revised regulations for securities companies are expected to be released in the near future. He stressed the importance of strengthening legal safeguards for reform and development, and highlighted the ongoing efforts to establish a more robust legal framework for the capital market. This includes advancing the Securities Investment Fund Law and the listed company regulations. There will also be a continued focus on improving the investor protection system.

Looking ahead, the CSRC plans to improve the environment for long-term capital, aiming to steadily increase the scale and proportion of such funds entering the market. The commission will also develop equity-focused public funds and enhance their role as market "stabilizers." Furthermore, the CSRC will strengthen cross-market, cross-industry, and cross-border risk monitoring, improve the long-term mechanism for monetary policy tools that support the capital market, and refine its policy toolkit. Efforts will also be directed towards enhancing market expectation management and fostering a healthy public opinion environment.

In terms of regulation, Li Chao stated the CSRC will improve its oversight and governance, refining the regulatory framework across listing, continuous supervision, delisting, trading, and institutions. A key priority is accelerating the establishment of an accountability system that integrates administrative, criminal, and civil liability. The CSRC also plans to promote the standardized application of artificial intelligence within the capital market and advance the digital transformation of its regulatory capabilities.

Finally, Li Chao noted that the CSRC will continue to leverage the capital market's primary role in mergers and acquisitions to build a vibrant and orderly M&A ecosystem. It will also intensify efforts to guide listed companies in enhancing investor returns, focusing on the sustainability, timeliness, and predictability of returns to better protect the rights of small and medium investors.

NFRA Details Priorities for Financial Stability and High-Quality Growth

NFRA Deputy Administrator Cong Lin stated that during the 15th Five-Year Plan period, the administration will integrate its work on risk prevention, strengthened regulation, and the promotion of high-quality development. Priorities include prudently managing risks in key areas and effectively resolving risks associated with local small and medium-sized financial institutions. The NFRA will enforce comprehensive oversight in five key areas and guide financial institutions to improve service and support for major national strategies, key sectors, and weak links.

Cong Lin also mentioned that the administration will take measures to foster a healthy industry environment. Financial institutions will be encouraged to establish correct performance and development perspectives and shift their focus from speed and scale to quality and efficiency. A major effort will be made to rectify market behaviors such as "price wars", illegal commission rebates, and other improper practices.

In supporting high-quality development, the NFRA will strengthen financial support for initiatives aimed at promoting consumption, expanding investment, stabilizing businesses and employment, and fostering technological innovation. This will include enhancing financing for major projects and key initiatives under national strategies.

PBoC Outlines Monetary Policy and Reform Directions

PBoC Deputy Governor Lu Lei clarified China's stance on its exchange rate, stating that the country operates a managed floating exchange rate system where the market plays a decisive role. He asserted that China has no need or intention to use currency depreciation to gain a trade advantage and will guard against herd behavior and self-reinforcing irrational expectations.

The central bank is committed to maintaining the stability of the currency's value to promote economic growth and support the real economy. During the 15th Five-Year Plan period, the PBoC will refine its modern monetary policy framework, gradually de-emphasizing quantity-based intermediate targets and focusing more on interest rate-based adjustment tools.

Lu Lei elaborated that the PBoC will enhance the base money supply mechanism, improve the reserve requirement system, and conduct open market operations with greater flexibility and precision. This will involve improving the market-based interest rate formation and transmission mechanisms to ensure a stable and well-guided short-term money market.

On the international front, the PBoC will promote the internationalization of the yuan, bolster cross-border financial infrastructure connectivity, and develop the offshore yuan market to enhance its liquidity supply. Additionally, during the 15th Five-Year Plan period, the central bank will improve its financial statistics, payment, treasury, and cash service systems to enhance the overall quality and efficiency of its services.

More updates to follow as information becomes available.