China will take measures to strengthen supervision, forestall risks, and promote high-quality development of the capital market, according to a circular released by the State Council on April 12.

According to the circular, in the next five years, the overall framework for high-quality development of the capital market will be basically formed, and the institutional mechanism for investor protection will be improved. The quality and structure of listed companies will be significantly optimized, and the strength and service capacity of institutions engaged in securities, funds, and futures will continued to be intensified.

By 2035, a highly adaptable, competitive and inclusive capital market will be basically established, and the legitimate rights and interests of investors will be more effectively protected, said the circular, adding that the capital market governance system and governance capacity will be further modernized, and a high-quality capital market in line with the country’s strong financial power will be built by the middle of this century.

To meet the targets, multiple measures should be taken, including further improving the issuance and listing system to raise the standards for listing on the main board and the growth enterprise board, and improve the evaluation standards for the attributes of sci-tech innovation board, according to the circular.

Meanwhile, more efforts should be made to strengthen responsibility for the whole process, including the issuing, listing and oversight of underwriting, said the circular, adding that the supervision of all aspects involving inquiry pricing and placement of new share offerings will be intensified.

The circular stressed strengthening oversight of information disclosure and corporate governance, comprehensively optimizing the system of shareholding reduction rules, intensifying oversight of cash dividends by listed companies, and promoting listed companies to increase the value of their investments.

China will deepen reform of the delisting system with further strict mandatory delisting criteria and unblocked, diversified delisting channels.

In addition, the high-quality development of securities and funding institutions will be promoted, and a sound industry culture and investment culture will be actively cultivated.

The circular also highlighted strengthening supervision over transactions to enhance the internal stability of the capital market, vigorously introducing medium- and long-term funds into the market and continuing to boost long-term investment.