Steady hand on the tiller

With global and domestic markets clouded by uncertainty, calm navigation has never been more important.

Richard Li reports on the latest regulatory moves in China

Streamlining administrative procedures and decentralizing authority has been the market regulation approach repeatedly emphasized by the central government in recent years, but the economic climate can be capricious.

Securities market volatility can threaten the stability of the financial system, excessive capital outflows that suck dry the life blood of economic growth, and unchecked development of the internet platform business and its potential for creating market bubbles are just some of the problems facing those whose hands are on the tiller of the Chinese economy, and for sectors prone to stormy weather, regulators have tightened their grip.

However, for calmer sectors that fit the national strategy, such as overseas mergers and acquisitions (M&A), regulators have further relaxed control over investment and financing activity. Law enforcement and judicial authorities have further clarified the issue of the application of key regulations and made the yardstick for judicial judgments and rulings more uniform, reducing the risks faced by market entities due to ambiguity.