Zhongyuan Securities' Deng Shubin: Profound transformation of the capital market's underlying logic; "15th Five-Year Plan" reforms lay a solid foundation for long-term positive prospects.

On October 19, CSRC Chairman Wu Qing delivered a keynote speech at the opening ceremony of the 2026 Financial Street Forum Annual Conference. Deng Shubin, Chief Economist of Central China Securities and Director of the Securities Research Institute, interpreted the speech as clearly indicating that the underlying logic of capital market operations has undergone profound changes and that the value of Chinese asset allocation has become more prominent. Centered on stabilizing the market, introducing long-term capital, tightening regulation, expanding opening-up, and building a sound multi-tiered capital market, the speech translates the medium- and long-term plan for the "15th Five-Year Plan" period into actionable institutional tools, product innovations, and regulatory measures. Deng Shubin analyzed that Wu Qing's speech released seven positive signals. First, reform adheres to planning for the long term while grasping the present, deploying and implementing in parallel, with the policy toolbox continuously activated to stabilize market expectations and enhance intrinsic resilience. Second, the main line of reform has shifted toward two-way coordination of investment and financing, building a virtuous positive cycle between investment and financing. Third, the entry of medium- and long-term capital into the market has entered the stage of productization and mechanism-based implementation, strengthening the capital market's "stabilizer." Fourth, the building of the rule of law is accelerating, filling regulatory gaps and enhancing market credibility. Fifth, high-level opening-up is steadily advancing, with equal emphasis on openness and security. Sixth, the differentiated functions of the multi-tiered capital market segments are continuously being strengthened, building an equity financing system covering the full life cycle of enterprises. Seventh, the risk governance system keeps pace with the times. Deng Shubin also believes that the incremental aspects of inclusive reform are concentrated in the issuance and financing system, the rule of law in listed company supervision, and incentive and constraint mechanisms, which will form a closed loop of "screening for listingimproving quality and efficiencyvalue realizationattracting sci-tech innovation and capital."