Member of the National Committee of the Chinese People's Political Consultative Conference and Director of Guangdong Securities Regulatory Bureau, Yang Zongru: Establish an outbound investment guidance mechanism to safeguard the overseas rights and interests of Chinese enterprises

Securities Times Reporter Cheng Dan

At the 2026 National Two Sessions, Yang Zongru, member of the Chinese People’s Political Consultative Conference and Director of the Guangdong Securities Regulatory Bureau, focused on special mechanisms for overseas rights and interests of Chinese enterprises, non-litigation enforcement legal systems in securities and futures law enforcement, and improving interconnection between mainland and Hong Kong financial markets.

Establishing and Improving a Special Mechanism to Safeguard Chinese Enterprises’ Overseas Rights and Interests

In recent years, Chinese companies, represented by listed companies, have gradually shifted from product exports to investment overseas, optimizing resource allocation globally and enhancing development quality. They have become an important force in expanding high-level opening-up. Yang Zongru explained that overseas income has become a significant source of revenue for A-share listed companies. According to statistics, in the first half of 2025, about 70% of A-share listed companies had overseas income, accounting for approximately 14% of total revenue, with 522 companies earning more than 50% of their income abroad. Chinese enterprises’ overseas investments not only promote the economic development of host countries but also contribute to their own high-quality growth and continuously enhance their international influence.

“However, due to increasingly complex international situations in recent years, Chinese companies face issues such as disorderly competition, insufficient talent and service supply, difficulties in outbound capital and personnel movement, and challenges in overseas rights protection,” Yang noted. Some companies’ important overseas rights and interests have been unfairly suppressed or subjected to discriminatory and restrictive measures, leading to loss of control over foreign subsidiaries, forced sales, or cancellation of exclusive operation or mining rights.

To further safeguard Chinese enterprises’ overseas rights and interests, Yang hopes to establish guidance mechanisms for outbound investments, set up specialized coordination mechanisms for outbound investment guidance, and plan prioritized investments in key areas such as developing new productive forces and strengthening overseas supply chain resilience. He also suggested organizing industry associations, leading enterprises, and “chain master” companies to leverage expert think tanks and demonstration roles, guiding orderly outbound investments, ensuring the domestic industrial chain maintains competitive advantages, and creating a fair, win-win environment for overseas expansion.

“Establish an early warning system for outbound investments, improve the quality and efficiency of public and intermediary services for outbound activities, and strengthen targeted support for companies facing sanctions or suppression,” Yang said. He hopes to integrate existing overseas investment information products such as foreign investment guidelines, trade guidelines, and business environment reports for key countries and regions into a unified tiered warning and information service system. Annual outbound investment guidelines should be developed for different regions. Key policies like national overseas comprehensive service platforms, local outbound service “one-stop” windows, outbound comprehensive service ports, and overseas integrated service stations should be implemented swiftly to build a complete public service system for outbound activities with coordinated efforts between central and local authorities and internal and external links.

Additionally, Yang expressed the hope to establish comprehensive emergency support policies for key enterprises unfairly suppressed or sanctioned abroad, such as guiding policy banks to provide quick approval for low-interest emergency bridge loans, supporting insurance companies to develop specialized sanctions insurance, and setting up fast channels for enterprises entering emerging markets like the “Belt and Road” initiative.

Improving the Legal System for Non-Litigation Enforcement in Securities and Futures Law Enforcement

Administrative penalties and regulatory measures are vital tools for securities and futures regulators to perform their duties lawfully. Their effective enforcement is crucial for maintaining regulatory authority and public trust, as well as protecting investors’ legitimate rights and interests. Yang explained that, in practice, the legal framework for non-litigation enforcement of administrative penalties and regulatory measures is not yet fully sound, which somewhat affects their enforcement effectiveness.

To further strengthen the enforcement of administrative regulatory measures and penalties, Yang hopes to improve the legal system for non-litigation enforcement of administrative penalties and regulatory measures.

First, introduce administrative regulations or judicial interpretations to safeguard the enforcement of regulatory measures. Given the urgent need for enforcement of administrative regulatory measures, he advocates exploring the work of mandatory enforcement and timely issuance of relevant regulations or judicial interpretations.

Second, revise judicial interpretations or issue relevant work opinions on pre-litigation property preservation. This would clarify the conditions and standards for administrative agencies to carry out pre-litigation property preservation, encouraging courts to actively undertake such measures in non-litigation enforcement cases in securities and futures law, further ensuring the effectiveness of penalties and confiscations.

Third, study expanding the scope of creditors’ revocation rights. Through judicial interpretations or other means, referencing provisions in the Tax Collection Administration Law that allow tax authorities to exercise revocation rights, to include penalties and confiscations imposed in securities and futures enforcement within the scope of creditors’ revocation rights.

Further Improving Interconnection Between Mainland and Hong Kong Financial Markets

The “14th Five-Year Plan” systematically deploys measures to expand high-level financial opening-up. In recent years, the People’s Bank of China and other departments have introduced policies such as the Guangdong-Hong Kong-Macao Greater Bay Area “30 Financial Measures,” enriching cross-border product systems and expanding cross-border financial services.

To further promote high-level institutional opening-up of financial markets and accelerate the building of a strong financial nation, Yang proposed three specific suggestions:

1. Build a venture capital system compatible with high-level technological innovation. Relying on innovation hubs like Guangzhou Huangpu Science City, promote cross-border venture capital pilot programs, optimize foreign currency venture capital access, risk investment, tax incentives, profit sharing, and exit mechanisms. Establish unified information sharing, investment evaluation, and exit mechanisms within the Greater Bay Area to attract and cultivate professional, international venture capital institutions.

2. Open channels for cross-border capital flows. Streamline cross-border investment and financing registration processes, simplify approval procedures, and guide overseas funds to enter the mainland market in an orderly manner via Hong Kong and Macau. Expand the scope of the Guangdong-Hong Kong-Macao QFLP (Qualified Foreign Limited Partner) quota management pilot, optimize approval and filing procedures, allow flexible quota adjustments among funds, and support more overseas institutions to participate in cross-border investment pilots in the Greater Bay Area.

3. Further optimize the “Cross-border Wealth Management Connect” policy system and product offerings. Establish specialized service systems within the mainland’s Greater Bay Area, allowing investment advisory personnel to provide professional services under designated venues and authorized platforms. Gradually explore institutional innovations such as mutual recognition of cross-border qualifications. Slightly relax the scope of qualified products, and consider opening private equity securities funds to offer investors a richer array of public and private offerings.

(Edited by: Wen Jing)