Global Times | China's capital market faces major opportunities during 15th Five-Year Plan period
The fourth plenary session of the 20th Central Committee of the Communist Party of China (CPC) adopted the Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development (the Recommendations). In line with the principles of the Central Financial Work Conference in 2023, the Recommendations provide further detailed guidance for working faster to boost China's strength in finance.
Enhancing the inclusiveness and adaptability of the capital market system, and improving the financial market functions that coordinate investment and financing, are important measures for boosting China's financial strength during the 15th Five-Year Plan (2026-30) period, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), noted in an article in the Suggestions guidance handbook. Against this backdrop, China's capital market – primarily the stock market – is expected to move past its consolidation phase and enter a key development period with significant opportunities.
In July, the CSRC's mid-year work meeting emphasized that the certainty of high-quality economic development, macro-policy expectations, and asset valuation improvement will provide the foundation and conditions for maintaining stable and healthy market operations. During the 15th Five-Year Plan (2026-30) period, these three certainties could evolve into multiple major opportunities for the development of China's capital market.
First, comprehensive reforms will further release dividends. The Suggestions propose more proactive macro-policies to stabilize growth, employment, and expectations, while also emphasizing the comprehensive deepening of reforms. Major initiatives are set to push forward deep reforms and expand high-level opening-up.
As China gradually resolves its development challenges, strengthens its development vitality, and highlights its comparative advantages, the economy is expected to achieve both qualitative improvements and reasonable quantitative growth, providing ongoing fundamental support to the capital market.
Second, economic transformation fosters new opportunities. The Suggestions note that major-country rivalry is becoming more intricate and intense than ever. This requires China to seize the strategic initiative amid intense international competition. Key areas of emphasis include "building a robust domestic market and fostering a new pattern of development" and "achieving greater self-reliance and strength in science and technology and steering the development of new quality productive forces."
In recent years, some countries have imposed extensive restrictions on Chinese tech companies and industries. Yet during the 14th Five-Year Plan (2021-25), China's technological strength reached new heights, innovation flourished, and new quality productive forces steadily developed, with some areas moving from "following" to "competing" and even "leading."
Despite external pressures affecting external demand during the 15th Five-Year Plan (2026-30), China remains confident in leveraging reforms, opening-up, and its institutional, market, industrial, and talent advantages to accelerate the cultivation of new growth drivers and upgrade the economic structure.
The future opportunities of China's capital market arise not only from emerging and industries of the future but also from the transformation and upgrading of traditional industries. Current "intense competition" within the domestic market is merely a case of growing pains. China's capital markets will play an important role in tackling these challenges, creating significant business opportunities.
In recent years, the capital market has been shifting toward new positive developments, improving market sentiment. China is expected to continue the positive macroeconomic trajectory, supporting the market sentiment needed for capital market growth.
Third, institutional improvements solidify the foundation for the development of the capital market. Last year, the State Council Nine-Point Guideline proposed enhancing the capital market's coordination of investment and financing functions. The implementation of subsequent measures has improved listed companies' quality and guided long-term funds into the market, laying a strong foundation for capital market performance this year.
From the meeting of the Political Bureau of the CPC Central Committee last September, which stressed boosting the capital market, to the July CSRC meeting this year emphasizing the consolidation of a steady and improving stock market, it is clear that stabilizing the stock market has achieved initial results. The next phase focuses on long-term and foundational capital market institutional development.
During the 15th Five-Year Plan (2026-30), the capital market is expected to closely focus on risk prevention, strong regulation, and high-quality development. Efforts will center on enhancing the inclusiveness, adaptability, attractiveness, and competitiveness of the market. As China's economic transformation gains momentum, stronger capital market support will enable domestic and global investors to better share in the dividends of its growth.