At the Boao Forum for Asia Annual Conference 2026, held from March 24 to 27 in Boao, Hainan, Wu Xiaoqiu, Dean of the National Academy of Financial Research at Renmin University, emphasized that despite global market volatility driven by external uncertainties, China's market retains strong endogenous momentum. He noted that while China is also experiencing fluctuations, there is no need for fear or excessive concern, as the underlying drivers and growth trajectory of the Chinese market remain intact.

To sustain the market's upward trend, Wu proposed reforms in three key areas: First, reforms should focus on the asset side, ensuring that investments entering the market are characterized by stability and predictability. Encouraging high-tech and innovation-driven enterprises to gradually dominate the market will support both market development and national strategic objectives, facilitating industrial upgrading and economic restructuring.

Second, efforts should target the demand side, with a core emphasis on maintaining ample market liquidity. Wu stressed the importance of guiding large funds—such as social security funds, commercial insurance, pensions, and corporate annuities—into the market. This will help establish mechanisms for preserving and enhancing the value of existing assets while ensuring sufficient liquidity. He added that liquidity in the Chinese market has already begun to improve, with the central bank actively monitoring capital market developments and introducing structural monetary policy tools aimed at stabilizing and fostering market growth, thereby maintaining a strong correlation between the market and monetary authorities and establishing a risk buffer.

Third, institutional reforms should be advanced, centered on strengthening legal frameworks, ensuring market transparency and fairness, and significantly raising the costs associated with violations and illegal activities. Wu pointed out that past penalties for misconduct were too lenient and that a shift is underway from administrative sanctions toward a structure emphasizing criminal penalties and civil compensation.

In conclusion, Wu highlighted that the core objectives of these three reforms are to ensure the Chinese market is free of hidden risks, maintains transparency, functions as a genuine investment market, and achieves its goal of becoming an international financial center by 2035.