China's capital markets could see reforms aimed at stability, innovation financing and stronger oversight during the 2026–2030 planning period, Guosen Securities said on October 26, 2026. The securities firm's outlook describes expected priorities, rather than announcing specific new rules.

Key Takeaways

  • Guosen expects reforms to encourage longer-term institutional investment and improve market resilience.
  • The firm sees capital market financing supporting emerging industries, including artificial intelligence and clean energy technologies.
  • Stronger enforcement and expanded international access are also part of its outlook.

China's capital markets and long-term investment

Guosen expects China to pursue changes to investment and financing mechanisms, raise standards for listed companies and deepen market-oriented reforms governing mergers, acquisitions and restructurings.

The firm also expects efforts to address barriers to participation by medium- and long-term investors, including social security funds, insurers and wealth management funds. It said performance evaluation frameworks could be developed to reflect longer investment horizons.

Financing for emerging industries

Guosen expects continued reform across China's multi-tier capital market system, encompassing equities, bonds and futures. In its view, these changes would make financing more responsive to different businesses and industries.

The firm identified artificial intelligence, biomedicine, clean energy technologies, aerospace and quantum technology as areas associated with the development of what it called new quality productive forces. It said improved financing access could help commercialize scientific and technological innovations.

Oversight and international access

Guosen expects a stronger investor-centered regulatory framework, including updates to securities laws and regulations, greater use of technology to monitor markets, and enhanced off-site monitoring and on-site inspections.

The firm also expects further institutional reforms and improvements to cross-border market connectivity. Those measures would be intended to encourage foreign participation and increase the appeal of renminbi-denominated assets.

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