China Announces Financial Policies to Support Innovation and Market Stability

Huo Xing Finance News, October 20: Pre-market headlines for A-shares: 1. The 2026 Financial Street Forum opened in the afternoon of October 19. At the opening ceremony, People’s Bank of China Governor Pan Gongsheng announced a series of upcoming policy measures, including establishing a liquidity support tool to address large redemptions by non-bank institutions, expanding the scope of eligible institutions for the Standing Lending Facility, facilitating the implementation of interconnectivity between bond markets, simplifying offshore financial institutions’ access to RMB purchase and sale operations in China’s foreign exchange market, and issuing guidelines on financial support for building international science and technology innovation centers in Beijing (Beijing-Tianjin-Hebei region). 2. China Securities Regulatory Commission (CSRC) Chairman Wu Qing, speaking at the opening of the 2026 Financial Street Forum, stated that the CSRC is fully implementing the national “15th Five-Year Plan” and the new “Nine Measures for Capital Markets,” proactively addressing multiple unexpected external risks, and advancing integrated efforts to prevent risks, strengthen regulation, and promote high-quality development. Market infrastructure has gradually improved, the full-chain regulatory system continues to be refined, and comprehensive reforms in financing and investment are progressing steadily. The capital market is becoming more dynamic, structurally optimized, and environmentally sound, delivering effective returns to investors and strongly supporting high-quality economic and social development. The CSRC also announced that it will soon introduce four measures to improve penalties for illegal share reductions. 3. According to the CSRC website, on October 19, 2026, the China Securities Regulatory Commission issued the “Implementation Rules for Administrative Penalties on Illegal Securities Transfers” (hereinafter referred to as the “Rules”), effective December 1, 2026. The Rules consist of eighteen articles, primarily standardizing the definition of “illegal securities transfers” and prescribing penalties for such violations. The CSRC will further standardize the determination and discretion of administrative penalties, strictly crack down on all forms of illegal share reductions, and provide stronger legal safeguards for building a safe, standardized, transparent, open, vibrant, and resilient capital market. 4. The People’s Bank of China and eleven other departments jointly issued the “Guiding Opinions on Financial Support for Building International Science and Technology Innovation Centers in Beijing (Beijing-Tianjin-Hebei), Shanghai (Yangtze River Delta), and the Guangdong-Hong Kong-Macao Greater Bay Area.” The document proposes accelerating the growth of patient capital to strengthen leadership in high-end industries. It supports Beijing, Shanghai, and the Guangdong-Hong Kong-Macao Greater Bay Area in establishing world-class venture capital hubs. The national venture capital guidance fund will play its role as patient capital by investing in sub-funds and projects in emerging and future industries. The established Social Security Science and Technology Innovation Fund will be utilized to provide stable and orderly financial support for the science and technology innovation sector. 5. Announcement No. 49 of 2026 by the Ministry of Commerce, General Administration of Customs, and Equipment Development Department of the Central Military Commission announced adjustments to export control measures related to drones. Additionally, Announcement No. 50 of 2026 by the Ministry of Commerce and General Administration of Customs announced export controls on tunnel boring machines and other items. 6. From October 20 to 22 local time, NVIDIA’s GTC conference will be held in Berlin, Germany. Jensen Huang will deliver a keynote speech on the 21st. As NVIDIA’s most anticipated technology and ecosystem event of the second half of the year, this year’s GTC shifts focus further from “selling GPUs” toward “selling AI factories.” The conference will emphasize accelerated computing, agent-based AI, physical AI, and robotics. 7. Micron Technology announced it will host a technical webcast on October 21 at 8:00 a.m. local time, led by President and Chief Technology & Product Officer Scott DeBoer, discussing technological innovations in DRAM, HBM, and NAND. 8. MiniMax officially launched its next-generation Flash model, M3.1 Flash. As a next-generation Flash model, M3.1 Flash delivers generational improvements in agentic tasks, programming, computer use, and cybersecurity capabilities, while increasing online inference speed by nearly threefold and reducing usage costs by 70%. MiniMax has previewed that a higher-performance Pro version will be released shortly. 9. Higuang Information: Third-quarter revenue reached RMB 5.856 billion, up 45.46% year-over-year; net profit attributable to shareholders of listed company was RMB 1.048 billion, up 37.90% year-over-year. 10. Three Gorges New Materials: The company plans to acquire 100% equity of Zhuhai Saiwei Electronic Materials Co., Ltd. through issuance of shares and cash payment, and raise supporting funds by issuing shares to no more than 35 specific investors—including its controlling shareholder Dangyang Urban Investment Group—up to RMB 1 billion in total. The target company specializes in R&D, production, and sales of lithium-ion battery electrolytes. The company’s shares will resume trading starting October 20, 2026. (Reported by Kegubao)