Actively promote the coordinated development of financial markets and significantly increase the proportion of direct financing.

Promote the innovation of financial products, continuously enrich product categories and optimize product structure.

Strengthen the market system and infrastructure construction, and improve the market operation mechanism. Promote the orderly flow of funds between markets and improve market linkage and efficiency. Gradually form a financial market system with reasonable levels and complementary functions to better serve the development of the real economy. Efforts should be made to improve the stock market, standardize the development of the main board and small and medium-sized board markets, and support small and medium-sized enterprises to develop and grow by using the capital market. Promote the construction of GEM, improve the operation quality and efficiency, and support the development of innovative economy. Expand the pilot of the agency share transfer system and speed up the construction of a unified supervision over-the-counter market covering the whole country. Explore the establishment of an international board market. Improve the transfer mechanism and market exit mechanism between different levels of markets, and gradually establish organic links between markets at all levels to form a market environment in which the fittest survive.

Continue to deepen the market-oriented reform of the stock issuance system, actively explore the innovation of issuance methods, further weaken administrative examination and approval, strengthen capital constraints, market constraints and integrity constraints, improve the inquiry system of new share issuance, and improve the rationality of issuance pricing. Explore the establishment of preferred stock system. Improve the delisting system, adhere to the survival of the fittest, constantly improve the quality of listed companies, and promote the coordinated and healthy development of the primary market and the secondary market. Further improve the refinancing system and investor return mechanism of listed companies, and guide and encourage listed companies to increase cash dividends. Promote the development of futures and financial derivatives markets, and promote the transformation of futures markets from quantitative expansion to quality improvement. We will steadily develop the commodity futures market, continue to promote the listing of commodity futures that meet the needs of economic development and market conditions, and promote the development of commodity index futures, commodity options, crude oil futures and carbon emission rights futures. We will continue to strengthen the construction of the financial futures market, launch treasury bonds futures in a timely manner on the basis of ensuring the smooth operation of stock index futures, and actively and steadily develop other equity financial futures options products, as well as financial derivatives such as interest rate and foreign exchange futures options products.

Actively and steadily promote institutional innovation and product innovation in the financial derivatives market, and improve the financial derivatives supervision system. Strengthen the construction of institutional investors and actively expand the participants in the financial derivatives market. We will steadily promote asset securitization, facilitate the financing of market participants, and implement asset management. We will continue to explore the development of credit risk mitigation tools in the inter-bank market, steadily develop the OTC credit derivatives market on the premise of strengthening management and preventing risks, and gradually form an effective market pricing and risk management mechanism.

Box 2: Credit Risk Mitigation Tool (CRM) in the inter-bank market is a basic credit derivative tool developed by China inter-bank market to manage credit risk. The inter-bank market has initially established a "2+N" product innovation framework with credit risk mitigation contract and credit risk mitigation certificate as the core. Among them, the credit risk mitigation contract (CRMA) is a financial contract in which the credit protection buyer pays the credit protection fee to the credit protection seller according to the agreed standards and methods, and the seller provides credit risk protection to the buyer for the agreed underlying debt. Credit Risk Mitigation Certificate (CRMW) is a valuable certificate created by a third party other than the main entity, which provides credit risk protection for the holder. It is a tradeable, one-to-many and standardized certificate.

Different from the internationally accepted credit default swaps (CDS), the product characteristics of credit risk mitigation tools reflect the principle of "service demand, simplicity and transparency, and control leverage". Among them, the credit risk mitigation certificate is a highly standardized credit derivative product, which implements "centralized registration, centralized custody and centralized liquidation". It is a credit derivative independently innovated by China Association of Interbank Market Dealers on the basis of summing up the lessons of the international financial crisis and combining with the reality of China. The introduction of credit risk mitigation tools is conducive to improving the credit risk sharing mechanism and will have a positive and far-reaching impact on the healthy development of financial markets. Reform and attack hard, and constantly improve the financial operation mechanism

Adhere to the direction of marketization, promote the reform of key financial areas and key links, constantly improve the financial operation mechanism, stimulate the vitality of market players, and give full play to the basic role of the market in the allocation of financial resources. Further clarify the areas and boundaries of the government's role and reduce the government's intervention in micro-financial activities. Steadily promote the reform of interest rate marketization, promote the construction of benchmark interest rate system in financial market, further play the benchmark role of Shanghai Interbank Offered Rate, and expand its application in market-oriented products.

Improve the medium and long-term market yield curve to provide an effective benchmark for product pricing of financial institutions. According to the maturity of conditions, the marketization of interest rates will be promoted in an orderly manner by liberalizing the prices of alternative financial products. We will continue to improve the central bank's interest rate regulation system, unblock interest rate transmission channels, guide financial institutions to continuously enhance their risk pricing capabilities, establish and improve the self-discipline mechanism for interest rate pricing based on the Shanghai Interbank Offered Rate, and ensure that the interest rate marketization reform is steadily advanced in accordance with the principle of "liberalization, formation and adjustment". The gradual realization of RMB capital account convertibility follows the general principle of "emphasizing key points, promoting overall, adapting to the market, reducing distortions, actively exploring and leaving room", further relaxing restrictions on cross-border capital flows, improving the balanced management system of capital outflow and inflow, improving the management of foreign creditor's rights and debts, and promoting RMB capital account convertibility in a safe and orderly manner. Take the facilitation of direct investment as the starting point to realize the basic convertibility of direct investment; Focusing on opening the domestic capital market and expanding foreign securities investment, further improving the convertibility of securities investment; Focus on facilitating cross-border financing, accelerate the reform of foreign exchange management of credit business, deepen the reform of foreign debt management system, and standardize the management and monitoring of foreign creditor's rights; Focusing on expanding individual autonomy in the use of foreign exchange, we will further liberalize cross-border transactions in other individual capital projects.

Section 4: Further improve the operation and management of foreign exchange reserves, actively explore and expand the channels and ways of using multi-level foreign exchange reserves, and improve the management system and mechanism of foreign exchange reserves. Further study and evaluate the risk tolerance of foreign exchange reserve management, increase the research on various investment fields, products and tools, adhere to the long-term strategic investment concept, adhere to the scientific and effective investment benchmark model, steadily promote diversified investment on the basis of prudent evaluation, optimize the allocation of monetary assets, improve the return on investment, and achieve the goal of safe, mobile and value-added foreign exchange reserves. Innovate the use of foreign exchange reserves to better support and cooperate with the national development strategy and serve the national sustainable development goals. Encourage and guide private capital to enter the field of financial services. On the premise of controllable risks, encourage and guide private capital to participate in the restructuring, capital increase and share expansion of financial institutions such as banks, securities and insurance. Support private capital to participate in the establishment of new rural financial institutions and microfinance companies such as village banks, loan companies and rural mutual funds cooperatives. On the premise of strengthening effective supervision, promoting standardized operation and preventing financial risks, we will further increase the participation of private capital in financial services and enhance the financial service capabilities for "agriculture, rural areas and farmers" and small and micro enterprises.