On December 29, 2024, Chinese financial scholar Wu Xiaocxiu stated at the 2024 Beijing Private Equity Forum that the most important responsibility of regulators and exchanges is to ensure market transparency and to transform the perception of the attributes of the Chinese capital market.
The 2024 Beijing Private Equity Forum was held in Beijing on December 29, with participation from several scholars in the financial industry. According to Caixin’s report on December 29, Wu Xiaocxiu, director of the National Institute of Finance at Renmin University of China and director of the Institute of China’s Capital Market Research, expressed his views on China’s financial market regulation and the role of the financial market during his speech on the 29th.
Wu Xiaocxiu stated, “I don’t quite like window guidance, but now it’s everywhere, this can be bought, that can’t be bought… I believe the most important responsibility of regulators and exchanges is to ensure market transparency. With transparency, the principle of ‘investment carries risks and risks must be borne by oneself’ can be established.”
Wu Xiaocxiu believes that in order to change the perception of the Chinese financial market, one cannot simply view the Chinese capital market as just a financing market. He said, “Investment is fundamentally about returns, it is real investment. Companies come for financing, investors come to invest, and more importantly, it’s about investment. Financing without investment return cannot be sustained,” “Merely understanding it as a financing market actually introduces risk factors into this market.”
Wu Xiaocxiu stated that the Chinese capital market has long evolved into a speculative market: “This is closely related to our perception because positioning it as a financing market, a financing function, all rules revolve around financiers, making the market a mechanism that facilitates financiers, this is very troublesome. Therefore, we must change our perspective, the core of the capital market is a wealth management mechanism, it is an investment market.”
Regarding enterprises, Wu Xiaocxiu believes, “I think the competitiveness of listed companies should be placed in a special and important position. Without the competitiveness of listed companies, everything is just a bubble.” If we only focus on risks and fail to see growth, it must be a problem with the institutional design of our market.
Public information shows that the so-called Private Equity Forum refers to the top summit in the field of private equity investment, mainly discussing hot topics and development trends in the private equity investment industry.
The Private Equity Forum is the top summit in the field of private equity investment funds in China, and has been held fourteen times since 2008. The forum is organized by the Global Private Equity Forum Organizing Committee, the Beijing Local Financial Supervision and Administration Bureau, the Beijing Municipal Science and Technology Commission, and other institutions.
Past forum attendees include government officials, domestic and foreign PE/VC institution representatives, domestic and foreign industry association representatives, equity investment professionals, and media reporters.