These Capital Market Proposals are Written into the Fifteenth Five-Year Plan for the First Time - At Least Eight Areas Warrant Close Attention

The full “14th Five-Year Plan” has been released, and for the first time, the plan includes references to the capital market. What are the new proposals and highlights? What new opportunities will the capital market face? Caixin has summarized these points.

It is clear that many of these new proposals were first introduced in recent years during Central Political Bureau meetings, Central Economic Work Conferences, and Central Financial Work Conferences. These new ideas will become key focuses over the next five years. Specifically, at least ten first-time mentions and new initiatives are noteworthy. The reporter has also organized changes from funding sources to product development, including technological finance and the explicit goal of accelerating the construction of Shanghai as an international financial center, among eight new perspectives.

1. Improving the functions of the capital market to coordinate investment and financing

2. Establishing a long-term mechanism to enhance the intrinsic stability of the capital market

3. Cultivating top-tier investment banks and investment institutions

4. Increasing the inclusiveness and adaptability of the capital market system

5. Growing patient capital

6. High-quality development of the bond market’s “Technology Board”

7. Long-term capital: early investment, small-scale investment, long-term investment, support for hard technology

8. Accelerating the construction of Shanghai as an international financial center

9. Developing diversified equity financing

10. Exploring new regulatory approaches aligned with technological innovation and high-level opening-up

Core Positioning: First mention of coordinating investment and financing

Compared to the “14th Five-Year Plan,” which emphasized “enhancing the financing functions of a multi-level capital market,” the “15th Five-Year Plan” explicitly states the need to “continue deepening comprehensive reforms of investment and financing in the capital market, enhance the system’s inclusiveness and adaptability, and increase the proportion of direct financing.” This reflects a continuation and deepening of reforms, covering the entire chain from issuance, trading, delisting, to investor protection. Notably, it is the first time that “inclusiveness and adaptability” are explicitly identified as core features of the capital market system.

Multiple investment banking professionals have noted that this proposal will influence the positioning of various segments within the multi-level capital market:

• STAR Market: from “hard technology” in the 14th Five-Year Plan to “upholding hard technology” and optimizing the fifth set of standards in the 15th.

• ChiNext: from “three innovations and four new” in the 14th to adding more inclusive listing standards in the 15th.

• Beijing Stock Exchange: from “building the main battleground” in the 14th to “strengthening the specialized, refined, distinctive, and innovative main battleground” in the 15th.

Institutional positioning: First mention of “cultivating top-tier investment banks and investment institutions”

This phrase originated from the October 2023 Central Financial Work Conference, which first proposed “cultivating top investment banks.” Its inclusion in the “15th Five-Year Plan” marks a shift from policy advocacy to strategic implementation, becoming one of the core measures in building a financial powerhouse.

Interviewees believe that including this in the plan aligns with policies aimed at deepening reforms of the capital market and improving financial services for the real economy. It signals a strong push to strengthen and optimize intermediary institutions and enhance core financial competitiveness, marking a significant policy deployment in the process of building a financial power.

Funding side: First mention of “patient capital”

The phrase “growing patient capital and improving policies supporting medium- and long-term funds entering the market” was included for the first time in a five-year plan. Compared to the more general “promoting medium- and long-term funds into the market” in the 14th Five-Year Plan, this wording is more specific and systematic, emphasizing institutional arrangements to create an environment where long-term funds are willing, able, and inclined to stay and grow.

The core idea of “patient capital” is to guide long-term funds such as insurance funds, social security funds, enterprise annuities, and national team funds to participate more stably in the market, addressing long-standing structural issues in the A-share market. From a funding perspective, the focus is on encouraging these institutions, especially medium- and long-term funds, to provide relatively stable incremental capital, supporting the long-term and steady development of the A-share market.

Basic system: First mention of systematic requirements for intrinsic market stability

The “15th Five-Year Plan” mentions “establishing a long-term mechanism to enhance intrinsic stability,” echoing the construction of a “Chinese-style market stability mechanism.” It emphasizes improving institutional design rather than short-term interventions to enhance the market’s risk resistance, enabling cross-cycle and counter-cyclical adjustments.

Investor protection: First time expanding the concepts of “trading regulation” and “investor protection”

This has been explicitly highlighted as a regulatory focus. The plan states the need to strengthen trading regulation and investor protection, whereas the 14th Five-Year Plan only mentioned “improving investor protection systems” and “strengthening supervision of shareholder rights and related-party transactions.” The emphasis in the 15th is on comprehensive, full-chain regulation, especially enhancing transparent trading management, fairness in services for different investor types, and effectively safeguarding the legitimate rights and interests of small and medium investors.

Product side: First mention of building a high-quality bond market “Technology Board”

The plan clearly states the need to improve policies supporting early, small, long-term, and hard technology investments, supporting high-quality listings and bond issuance for innovative tech enterprises. The high-quality construction of the bond market’s “Technology Board” is mentioned for the first time, elevating the 2025 launch of the bond market’s “Technology Board” policy to a national strategic level. It emphasizes differentiated institutional arrangements to support tech companies, financial institutions, and equity investors in issuing tech innovation bonds, forming an ecosystem of “early, small, long-term, hard tech” support.

Additionally, steady development of futures, derivatives, and asset securitization is systematically included in the five-year plan for the first time.

Tech Innovation Finance: First mention of policies supporting early, small, hard tech investments

The plan proposes building a tech finance system compatible with technological innovation and improving policies supporting early, small, and hard tech investments.

Notably, the full document exceeds 50,000 words, with over 30 mentions of “artificial intelligence,” totaling more than a thousand words. This underscores AI as a core new productivity force, setting clear directions for industrial development and influencing long-term investment themes, capital deployment, valuation of tracks, and the development of market participants.

There are also at least 20 mentions emphasizing strengthening computing power and data supply efficiency.

Overall, with the full release of the “15th Five-Year Plan,” many institutions believe that structural opportunities in digital technology, space economy, high-end manufacturing, new consumption, and biotech are worth long-term attention. Historically, sectors prioritized in five-year plans have performed well in the capital markets. The plan’s key focuses—such as building a modern industrial system, developing new productivity, expanding domestic demand, boosting consumption, improving livelihoods, and promoting green and low-carbon development—are areas to watch closely.

Opening-up and regulation: Accelerating the construction of Shanghai as an international financial center is now included for the first time

The plan explicitly mentions accelerating the development of Shanghai into an international financial center for the first time. It also states that increasing foreign investment in equity and venture capital in China is a new inclusion, along with exploring new regulatory approaches compatible with technological innovation and high-level opening-up.

Three underlying logical shifts

Caixin notes that the concept of “building a strong financial nation” is the most significant change in the “15th Five-Year Plan,” setting a clear tone and serving as a foundation for many new proposals. Although the keyword “finance” appears 12 times less than in the 14th plan, there is a greater emphasis on quality and institutional development, especially within the capital market. The focus on details—such as balancing investment and financing, growing patient capital, serving new productivity, and establishing a feedback mechanism with returns—is more prominent.

Three fundamental logical shifts are becoming clearer:

1. Overall positioning: The 14th plan aimed to increase direct financing, improve basic systems, and serve the real economy. The 15th aims to improve the coordination of investment and financing functions, positioning the capital market as a core platform for building a modern industrial system and achieving technological self-reliance.

2. Market intrinsic stability: The plan emphasizes establishing a long-term mechanism to enhance intrinsic stability, including improving the Chinese-style market stability system, creating a “long-term funds and investments” ecosystem, enriching cross-cycle and counter-cyclical tools, and strengthening risk control and expectation management. This shifts the market from passive responses to proactive shaping, solidifying a resilient and stable foundation for long-term healthy development.

3. Healthy cycle: The plan advocates “drawing a blueprint and sticking to it,” guiding resource allocation across cycles. It emphasizes supporting technological innovation, developing new productivity, expanding high-level opening-up, and strengthening national security. For the capital market, this promotes a positive cycle of policy direction, capital allocation, and market ecology, fostering high-quality growth.

Regulatory actions are also clear. CSRC Chairman Wu Qing stated that during the “15th Five-Year” period, the CSRC will focus on achieving qualitative improvements and reasonable quantitative growth, aiming for five new enhancements: increased resilience and stability, more inclusive and adaptable systems, higher-quality listed companies, stronger enforcement and investor protection, and deeper, higher-level opening-up.

Many institutions believe that the “15th Five-Year Plan” will positively impact the capital market. Recently, Chinese assets have shown resilience amid global volatility. Despite sharp fluctuations in major markets, especially in Asia-Pacific due to geopolitical tensions, Chinese assets, particularly A-shares, have demonstrated strong resilience. Overall, the plan’s high-level, long-term orientation and clear development goals are expected to boost investor confidence and have a positive influence on the market.

(Article source: Caixin)