China’s securities regulator calls for lessons from Yi Huiman case, pledges to stabilise markets and expectations

The Party committee of the China Securities Regulatory Commission (CSRC) held a meeting to convey and implement the decisions of the Chinese Communist Party’s fifth plenary session. It called for deep reflection on the lessons from cases involving Yi Huiman and others, and an all-out effort to stabilise markets and expectations while continuing to strengthen capital market resilience and confidence.

CSRC Party Secretary and Chairman Wu Qing chaired an expanded Party committee meeting on Friday (30 October) to convey and study an important speech by Chinese Communist Party General Secretary Xi Jinping and the decisions of the fifth plenary session of the party’s 20th Central Committee, and to plan implementation measures.

The meeting called for strengthening commitment to the party as a fundamental task, with strict standards for ideological and political development. It also urged close scrutiny of the “critical few” in leadership positions and strict standards for strengthening leadership teams.

The meeting called for deep reflection on the lessons from the cases involving Yi Huiman, Wang Huimin, Wang Jianjun and Fang Xinghai, and for using these cases to drive further rectification and improve governance. Strict discipline must begin with the CSRC’s own Party leadership, it said, calling for rigorous adherence to the central leadership’s eight-point rules on conduct and the principle of democratic centralism. It also urged thorough supervisory talks with the top officials of subordinate bodies, and stronger education, management and oversight of leading officials at all levels.

The meeting called for fully harnessing the political guidance and safeguards provided by full and rigorous Party self-governance, with a firm focus on the broader picture and a systemic approach. It urged an all-out effort to stabilise markets and expectations, deepen comprehensive investment and financing reforms, improve regulation across the entire chain, and continue strengthening capital market resilience and confidence. These efforts should ensure the successful completion of all capital market tasks in the first year of the 15th Five-Year Plan.

China’s major indices all ended October lower. The CSI STAR & ChiNext 50 Index fell more than 23% over the month, while the ChiNext Index was down more than 44% from its record high in June this year. The Shenzhen Component Index, CSI 500 and CSI 2000 each fell more than 15% over the month.