China’s securities regulator prioritizes market stability in 2026 plan

The China Securities Regulatory Commission (CSRC) has outlined its priorities for market stability in its 2026 work plan, with a focus on preventing sharp fluctuations to ensure the steady growth of the capital market. During its annual work conference, the regulatory body reflected on the previous year’s performance and set out key objectives for the year ahead.

Despite the current stable performance of the capital market, the CSRC acknowledged the presence of complex challenges arising from both domestic and external factors. To address these challenges, the regulator emphasized the need to strengthen the market’s intrinsic stability by cracking down on excessive speculation, market manipulation, and other illicit activities that could lead to sudden market fluctuations.

The CSRC aims to cultivate an environment conducive to long-term investment by encouraging the participation of long-term capital in the market. This involves expanding channels for medium and long-term capital inflows, introducing new products and risk management tools tailored to long-term investment strategies, and promoting responsible, value-driven investment practices.

In addition to fostering long-term investment, the CSRC is committed to ongoing reforms in the multi-tiered equity market. This includes clamping down on illegal activities such as financial fraud, price manipulation, and insider trading, as well as improving corporate governance standards among listed companies to enhance transparency and accountability.

Furthermore, the CSRC will focus on advancing the two-way opening up of the capital market in 2026. This includes streamlining the Qualified Foreign Institutional Investor scheme to attract foreign investors, expanding the range of futures products available to overseas investors, and facilitating cross-border investment and financing to promote greater integration with global markets.