Introduction
April 15, 2025, marks the tenth National Security Education Day. National security is the bedrock of national rejuvenation, while financial security serves as the “ballast” for stable economic operations. As participants in the capital markets, we bear the mission of safeguarding financial security and serving national strategies. On this occasion, Todaytec invites you to focus on the new “Nine National Provisions” and the “1+N” policy framework for the capital market. Together, let us explore how these policies fortify the foundation of financial security and drive high-quality economic development!
I. National Security and Capital Markets: Synchronized Efforts to Fortify Economic Defenses National security encompasses multiple dimensions including politics, economy, and finance, while the health and stability of capital markets serve as a core pillar of economic security. In recent years, China's capital markets have adopted the new “Nine-Point National Policy” as their guiding framework, establishing a “1+N” policy system. Through rigorous regulation, risk prevention, and reform promotion, they have provided robust safeguards for high-quality economic development.
II. The New “Nine National Provisions” and the “1+N” Policy Framework: The “Four Pillars and Eight Supports” of Capital Market Reform In April 2024, the State Council issued the new “Nine National Provisions,” establishing the guiding principle of “strengthening oversight, preventing risks, and promoting high-quality development.” This initiative was complemented by over 50 supporting rules, forming a comprehensive “1+N” policy system that spans the entire capital market lifecycle—from issuance and trading to delisting. This framework injects both a “stabilizing force” and a “source of vitality” into the capital markets.
Key Policy Highlights
1. Strictly control entry points to enhance quality at the source.
- Listing standards upgraded: Entry requirements for the main board and ChiNext have been raised, while the STAR Market has strengthened its evaluation of scientific and technological innovation attributes, imposing stricter metrics on R&D investment, patent counts, and other indicators.
- Restrictions on Sudden Dividend Payouts: Companies that distribute dividends exceeding 80% of their net profits in the three years prior to listing are prohibited from going public, curbing arbitrage through “liquidation-style dividend payouts.”
2. Strict oversight throughout the entire lifecycle
-New rules on share reduction: Strictly control major shareholders circumventing restrictions to reduce holdings, clarify liability for violations, and protect the rights of small and medium investors.
-Regulation of algorithmic trading: Include high-frequency trading in monitoring to prevent market manipulation risks.
3. Ensure all delistings proceed as required to facilitate market renewal.
- Tighter delisting standards for financial fraud: Companies with annual fraud exceeding 200 million yuan and over 30% of revenue will trigger delisting, accelerating the exit of substandard enterprises.
- Refining the delisting compensation mechanism: Promoting advance compensation and class action lawsuits to support investors.
4. Serving the new quality productive forces, expanding patient capital
- Introduced the “16 Measures for Science and Technology Innovation” and the “6 Measures for Mergers and Acquisitions” to encourage capital investment in hard technology, green economy, and other sectors.
- Optimize the fundraising, investment, management, and exit mechanisms for private equity funds to guide long-term capital in supporting technological innovation.
III. Putting National Security into Action! National security is everyone's responsibility; financial security ensures steady progress. Guided by the new “Nine National Guidelines” and supported by the “1+N” policy framework, Todaytec steadfastly fortifies the security defenses of the capital markets, contributing to high-quality economic development and the building of a financial powerhouse!
