Core Viewpoint - The China Securities Association (CSA) has issued the first document specifically aimed at promoting high-quality development in the securities industry, emphasizing the importance of functionality over mere profitability [1][2]. Group 1: Industry Direction - The CSA's implementation opinion stresses that securities firms should prioritize functionality, marking a shift from a focus solely on profitability [2][13]. - The document outlines a series of requirements for securities firms, including the establishment of a sound and effective compensation incentive mechanism and a clean business conduct management system [2][15][16]. Group 2: Regulatory Measures - The CSA plans to enhance self-regulatory rules for underwriting and issuance, detailing standards for project selection, guidance, due diligence, and ongoing supervision post-listing [3][4]. - It aims to improve the evaluation of underwriters' pricing capabilities and to ensure that they adequately disclose risks and practice prudent pricing [3][4]. - The quality of pricing reports will be integrated into the evaluation system for investment banking practices, promoting high-quality report issuance [4][6]. Group 3: Compliance and Risk Management - The CSA will introduce regulations to strengthen compliance and risk management systems, focusing on algorithmic trading and derivatives trading [8][9]. - A risk monitoring index system centered on issuers' repayment capabilities and a default risk warning model will be established for bond business [11]. Group 4: Wealth Management and Internationalization - The CSA encourages more securities firms to apply for fund advisory business qualifications, promoting wealth management services [12]. - It also supports the exploration of cross-border data mechanisms to enhance international business operations [13]. Group 5: Cultural and Ethical Standards - The implementation opinion emphasizes the need for a stable compensation system and integrity in business practices, urging firms to resist negative trends such as ostentation and materialism [14][16].