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In a bid to restore confidence in China’s securities market, the country’s securities watchdog has initiated discussions with market participants, focusing on proposals for stricter oversight of company listings and trading activities.

Led by the newly-appointed chairman Wu Qing, the series of seminars took place on Sunday and Monday following the conclusion of the week-long Lunar New Year holiday. The urgency to stabilize the market, which recently hit five-year lows, was evident in the prompt convening of these meetings.

Attendees, comprising small investors, listed companies, fund managers, and accounting firms, emphasized the need for enhanced scrutiny of initial public offerings (IPOs) and suggested measures to weed out inadequately qualified listed entities. They also advocated for a more equitable trading mechanism and advocated for harsher penalties for those violating regulations, as outlined in a statement by the China Securities Regulatory Commission (CSRC).

The CSRC affirmed its commitment to seriously consider all proposals and promptly implement feasible ones, reaffirming its resolve to maintain market stability and mitigate risks.

“Confidence is more precious than gold,” remarked the official China Securities Journal in an editorial on Tuesday, emphasizing the importance of rebuilding trust through improved communication with the market. The journal underscored the significance of attentive listening as a crucial first step in this process.

Chairman Wu Qing, colloquially known as the “broker butcher” due to his past regulatory endeavors, assumed his role on February 7, succeeding Yi Huiman, whose measures to stabilize the market had fallen short. Shortly after Wu’s appointment, the CSRC took swift action against employees at China Merchant Securities for illegal stock trading and fined Shanghai-based semiconductor company S2C Ltd for fraudulent listing practices.

Looking ahead, the CSRC plans to bolster collaboration with law enforcement agencies to combat securities fraud and financial manipulation, as reported by the China Securities Journal. Additionally, efforts will be made to expedite the registration process for equity funds and channel more long-term capital into the stock market, signaling a multifaceted approach to rejuvenating market vitality.