The Fourth Plenary Session of the 20th Central Committee of the CPC will be held in Beijing from October 20 to 23, 2025. The plenary session approved the Proposal of the Central Committee of the Communist Party of China on Formulating the 15th Five Year Plan for National Economic and Social Development. The plenary session proposed to accelerate the self-reliance and self-improvement of high-level science and technology, and lead the development of new quality productive forces, anchoring the historical coordinates for deepening the reform of the capital market. Experts believe that in the new era, the capital market shoulders the core mission of injecting financial vitality into technological innovation and building an empowering hub for industrial upgrading. It needs to work together through institutional innovation, patient capital cultivation, and high-level openness to establish a virtuous cycle of "technology industry finance". Facing the "Tenth Five Year Plan", the capital market will accelerate the transformation from a traditional financing platform to an innovative factor aggregator and an industrial upgrading booster, inject more momentum into the new quality productivity with deeper reform, and provide solid support for the construction of Chinese path to modernization. Deepening institutional reform and activating the strong engine of technological innovation. Recently, Star River Power completed a new round of financing and launched IPO guidance, accelerating the development and commercialization process of reusable liquid rockets with the help of capital. A few days ago, another commercial rocket "unicorn" Tianbing Technology also completed IPO counseling and filing, and companies such as Blue Arrow Aerospace and Yixin Aerospace have been pushing forward with the listing process. Behind the accelerated integration of these hard technology enterprises with the capital market is the institutional breakthrough in key links such as capital market issuance and listing, refinancing, mergers and acquisitions, which enhances the institutional inclusiveness and adaptability to technological innovation. Facing the 15th Five Year Plan, China's capital market will accelerate its profound transformation from traditional financing venues to innovative factor aggregators and industrial upgrading boosters. ——Enhance institutional inclusiveness and provide greater support for innovation. In June of this year, the China Securities Regulatory Commission launched the "1+6" reform policy for the Science and Technology Innovation Board, expanding the scope of application of the fifth set of listing standards to more cutting-edge technology fields such as commercial aerospace, artificial intelligence, and low altitude economy. Zhao Xijun, co dean of the China Capital Market Research Institute at Renmin University of China, believes that we should continue to take the reform of the Science and Technology Innovation Board and the Growth Enterprise Market as the starting point, promote institutional reforms such as issuance and listing, mergers and acquisitions, and provide greater support for innovation. In the view of Yang Chao, Chief Strategy Analyst of China Galaxy Securities, with the deepening of capital market reform, investors will pay more attention to the technological innovation capability and development potential of enterprises, thereby guiding resources to further converge towards the field of new quality productivity. ——Smooth the mechanism of mergers and acquisitions, activate industrial integration and optimize the allocation of innovative resources. With the introduction of the "Six Measures for Mergers and Acquisitions" and the continuous optimization of related institutional rules, listed companies disclosed a total of 1234 asset restructurings in the first eight months of this year, including 152 major asset restructurings, an increase of 40% and 150% year-on-year, respectively. Luo Zhiheng, Chief Economist and Dean of the Research Institute of Yuekai Securities, believes that further support should be given to listed companies in implementing mergers and acquisitions around industrial transformation and upgrading, strengthening and supplementing chains, optimizing the "small and fast" review mechanism for restructuring, implementing the installment payment mechanism for restructuring shares, and further improving the efficiency and market vitality of mergers and acquisitions through deeper institutional reforms. ——Strengthen the linkage between stocks and bonds, and stimulate the synergistic effect of multi-level markets. Strengthening the support of the bond market for technological innovation is also an important link in activating innovative capital. Since the launch of the "Technology Board" in the bond market in May this year, the issuance scale of technology innovation bonds has exceeded 1 trillion yuan, becoming an important supplement to financing for technology enterprises. Industry insiders expect to further expand the coverage of science and technology innovation bonds through deepening risk sharing, credit enhancement mechanisms, and innovative rating methods. At the same time, promoting the expansion of REITs' underlying assets into the hard technology field further highlights their function as accelerators of new quality productivity. As of the end of the second quarter of this year, the management scale of private equity venture capital funds in China has reached 14.4 trillion yuan, with 150000 projects under investment. Among them, the number of projects invested by venture capital funds in small and medium-sized enterprises, high-tech enterprises, and start-up technology-based enterprises accounts for 74%, 50%, and 32% respectively... The data clearly shows that private equity venture capital funds, with their patient capital characteristics of "investing early, investing small, and investing in technology", accurately adapt to the high investment, long cycle, and high-risk characteristics of technological innovation activities, and play an important role in cultivating new quality production capacity. Therefore, strengthening patient capital is seen as another key factor for the capital market to support the development of new quality productivity. In the future, it is necessary to work together from multiple dimensions such as fundraising, investment, and products, and systematically build an institutional environment and market ecology that is conducive to patient capital's willingness, courage, and ability to invest. ——Innovate institutional supply and establish a new mechanism for cultivating patient capital. In recent years, the proportion of government investment funds in the overall funding scale of the venture capital industry has further increased. As an important carrier of patient capital, government guided funds are exerting increasingly significant leverage effects through institutional innovation. Hu Yuwei, Chief Policy Analyst of CITIC Securities, said that the leverage effect of the National Venture Capital Guidance Fund should be fully utilized to mobilize more social capital to invest in the field of technological innovation. During the 15th Five Year Plan period, government guided funds need to act as patient capital and risk sharers, jointly supporting seed and start-up technology enterprises by participating in market-oriented venture capital funds, and building a government guided, market-oriented, and risk sharing science and technology innovation investment and financing ecosystem. ——Deepen the reform of the investment side and smooth the channel for medium and long-term funds to enter the market. Zhang Jun, Chief Economist and Dean of the Research Institute of China Galaxy Securities, analyzed that during the "15th Five Year Plan" period, relevant departments will focus on breaking through the barriers to the entry of medium and long-term funds such as social security, insurance, and wealth management, and continue to promote the reform of public funds. Tian Xuan, Dean of the National Institute of Finance at Tsinghua University, suggested establishing a reasonable due diligence exemption mechanism for state-owned capital operating companies to guide institutions to focus on long-term value. ——Accelerate product innovation and create a matrix of financial instruments that are compatible. Product innovation has become the key to bridging the "last mile" of financial services in response to the characteristics of technology enterprises, such as long cycles, high risks, and light assets. Experts believe that during the 15th Five Year Plan period, the capital market will focus on product innovation, breaking through the adaptability limitations of traditional varieties, and creating a financial instrument matrix that better meets the funding needs of technology enterprises. Xie Yaxuan, Deputy Director of the R&D Center of China Merchants Securities, proposed to innovate the "convertible bond+technology option" combination product. When the enterprise reaches the agreed technical milestone, investors are allowed to convert shares at the agreed price, achieving a dynamic balance between risk and return. Promote the linkage product of "government guided fund follow-up investment+bank credit", where government funds invest in early-stage technology projects first, and banks provide matching loans according to the agreed proportion, forming a fund relay of financial guidance followed by market follow-up. Through the synergistic efforts of institutions, investments, and products, a capital market ecosystem that is more adaptable to the needs of technological innovation will also accelerate its formation. Goldman Sachs, an international financial institution, has made it clear in its latest report that "the structural trend of Chinese capital inflows into the stock market may have begun." This report keenly captures that based on the demand for investment diversification and the sustained low allocation to the Chinese market, the Chinese market has returned to the global investor's vision. The plenary session proposed to "expand high-level opening up to the outside world and create a new situation of win-win cooperation." The China Securities Regulatory Commission recently stated that it will continuously improve the convenience of cross-border investment and financing, attract more fresh water sources, and strive to attract more global capital to invest in China and share growth. Looking ahead to the next stage, experts predict that the opening up of the capital market will exhibit three major trend characteristics: institutional opening will be pushed forward in depth. Wang Hanfeng, head of the research department of China International Capital Corporation (CICC), predicts that during the 15th Five Year Plan period, the focus will be on optimizing the qualified overseas investor system, moderately relaxing investment quota management, and expanding investment scope to more asset categories such as derivatives. ——Market interconnectivity will continue to expand. At present, we are closely cooperating with the Shanghai and Shenzhen stock exchanges on projects such as the inclusion of REITs in the Shanghai Hong Kong Stock Connect, the introduction of block trading mechanisms, and the inclusion of RMB counters in the Hong Kong Stock Connect. ”Hong Kong Stock Exchange Group CEO Chen Yiting revealed. ——The supporting products and services will continue to be improved. Zhang Jun stated that in the future, he will encourage the development of more RMB denominated financial products for overseas investors to enhance the attractiveness of RMB assets. In the process of expanding high-level opening up, the pace of enterprises' "going global" has become more stable, and the efficiency of overseas listing filing has significantly improved. Ningde Times' Hong Kong stock listing took only 25 days from acceptance to approval, demonstrating the regulatory authorities' support for high-quality enterprises to go public overseas. The connotation of 'going global' is becoming increasingly rich. ”Liu Xiangdong, Deputy Director of the Research and Information Department of the China International Economic Exchange Center, stated that the overseas listing of enterprises has built a communication bridge between global capital and Chinese entities, and the "going global" of futures settlement prices has enhanced the international pricing discourse power of domestic industries. These innovative models not only expand the development space of enterprises, but also promote the deep integration of Chinese capital market rules and international standards. The China Securities Regulatory Commission stated that it will further improve the quality and efficiency of overseas listing filing, and create a more transparent, efficient, and predictable regulatory environment. Industry experts believe that during the 15th Five Year Plan period, China's capital market will deepen interconnection with mature markets, and a two-way open pattern will continue to be constructed. With the optimization of the Shenzhen Hong Kong Stock Connect, the expansion of the Shanghai London Stock Connect, and the continuous enrichment of cross-border index products, the internationalization process of China's capital market will enter a new stage. Draw an innovative picture with the pen of reform, and irrigate the fertile soil of the industry with financial vitality. As the blueprint for the 15th Five Year Plan unfolds, the capital market will inevitably demonstrate greater responsibility in the journey of technological self-reliance and self-improvement, injecting a continuous stream of financial vitality into the construction of a modern economic system. (New Society)