CSRC signals focus on quantitative trading oversight amid market stabilization efforts

China's securities regulator has signaled its focus on the oversight of quantitative trading as part of broader efforts to stabilize the capital market and bolster investor confidence amid recent market volatility, underscoring its growing emphasis on protecting retail investors.

During a visit to a securities brokerage in Beijing on Monday, China Securities Regulatory Commission Chairman Wu Qing chaired a symposium with investors to solicit suggestions on promoting the stable and healthy development of the capital market.

In a rare move, the meeting brought together eight representatives from a broad range of investors, ranging from large institutional investors to individual retail investors, allowing retail investors to share their views directly with the regulator.

Participants called for stronger countercyclical measures in both the primary and secondary markets, more efforts to attract long-term capital, and a "well-regulated development of quantitative trading and artificial intelligence applications" in the capital market, according to a CSRC statement.

The fairness of quantitative trading, which accounts for roughly 36 percent of A-share turnover according to some market data, has been the subject of increasing discussion, with some retail investors arguing that it gives large institutional players an unfair advantage.

"Investors are the foundation of the capital market and its most important participants," Wu said.

Wu pledged that the CSRC will safeguard stable market operations, improve the transparency and authenticity of listed companies, enhance investor returns, and uphold an open, fair and equitable market order so investors can better share the benefits of China's high-quality economic and capital market development.

Investors at the symposium also urged listed companies to increase dividend payouts and called for tougher penalties for securities-related violations.