Chairman Wu Qing of the Securities Regulatory Commission recently stated that high-quality securities institutions should be appropriately “untied”, risk control indicators should be further optimized, capital space and leverage restrictions should be moderately opened, and capital utilization efficiency should be improved. This has sparked a buzz in the market. Some voices believe that this has opened up room for policy imagination for the securities industry to “moderately increase leverage.” The reporter learned from relevant sources close to the supervisory authorities that the supervisory authorities guide industry institutions to adhere to the direction of functional, intensive, specialized, and characteristic development. Appropriate “unbundling” of high-quality institutions is one way to strengthen classification supervision and limit strengths and weaknesses. The supervisory authorities will adhere to the general tone of seeking steady progress, and properly optimize leverage requirements for high-quality leading institutions to carry out business in line with national strategies and policies, and promote the securities industry to improve capital utilization efficiency and better serve the real economy. The overall leverage range of the industry will remain within a reasonable range, and will definitely not do anything fast.

Chairman Wu Qing of the Securities Regulatory Commission recently stated that high-quality securities institutions should be appropriately “untied”, risk control indicators should be further optimized, capital space and leverage restrictions should be moderately opened, and capital utilization efficiency should be improved. This has sparked a buzz in the market. Some voices believe that this has opened up room for policy imagination for the securities industry to “moderately increase leverage.” The reporter learned from relevant sources close to the supervisory authorities that the supervisory authorities guide industry institutions to adhere to the direction of functional, intensive, specialized, and characteristic development. Appropriate “unbundling” of high-quality institutions is one way to strengthen classification supervision and limit strengths and weaknesses. The supervisory authorities will adhere to the general tone of seeking steady progress, and properly optimize leverage requirements for high-quality leading institutions to carry out business in line with national strategies and policies, and promote the securities industry to improve capital utilization efficiency and better serve the real economy. The overall leverage range of the industry will remain within a reasonable range, and will definitely not do anything fast.