CSRC chief unveils yuan counter, REITs push for Stock Connect
China's securities regulator will accelerate yuan counter trading and REITs under Stock Connect, among four near-term measures announced by CSRC chairman Wu Qing. The plan includes a fund monitoring centre, AI rules for securities firms, stricter penalties for illegal share reductions, and guidance
China Securities Regulatory Commission (CSRC) chairman Wu Qing said China will accelerate yuan counter trading and real estate investment trusts (REITs) within the Stock Connect scheme under a five-synergy cooperation model between the mainland and Hong Kong markets.
Speaking at the Annual Conference of Financial Street Forum 2026, Wu said it is necessary to strengthen strict law enforcement, cultivate a standardised and healthy market ecosystem, fully implement the "five major supervisions," further strengthen the supply of institutional mechanisms, and resolutely safeguard an open, fair, and just market order.
He laid out four near-term measures. The first is the establishment of a fund operation monitoring centre to handle private fund share registration, collect public and private fund information, conduct risk monitoring, and enhance risk prevention, control, and supervisory effectiveness in the fund industry.
The second is to issue opinions on the safe and compliant use of artificial intelligence in securities and futures, strengthen rules on business development and data security, promote secure and efficient application in risk control and investment research, and guide technology for good.
The third is to improve penalty rules for illegal share reductions, adhere to the principle that penalties match the offence and that neither the innocent nor the guilty are wrongly treated, refine determination standards, and crack down on illegal share reductions more precisely and effectively.
Lastly, Wu said the CSRC will formulate and issue guidance on advance compensation in the securities market, clarify the applicable entities and implementation procedures, promote advance compensation in accordance with the law, quickly and efficiently, and better safeguard the lawful rights and interests of small and medium-sized investors.
He stressed the need to prioritise the safety and stability of the capital market, including closely tracking domestic and overseas market developments, strengthening risk assessment and policy tool reserves, and consolidating and improving market stabilisation mechanisms.
Wu added that the CSRC will strengthen risk prevention for new businesses and remain highly vigilant against emerging risks, such as overseas leveraged products linked to individual A-share stocks.