Core Viewpoint - The primary function of the capital market is to incentivize social innovation and progress, as emphasized by Wu Xiaoqiu during a seminar on the future of China's capital market [1]. Group 1: Capital Market Reform - The 20th Central Committee's Fourth Plenary Session outlines a comprehensive plan for China's economic and social development over the next five years, marking the "15th Five-Year Plan" as a critical phase for modernization by 2035 [1]. - Capital market reform is identified as a key support for achieving the goals set for this period [1]. Group 2: Ecological Reconstruction of Capital Market - Wu Xiaoqiu proposes three major directions for reconstructing the capital market ecosystem during the "15th Five-Year Plan" [2]. - On the asset side, he praises the role of the Sci-Tech Innovation Board and the Growth Enterprise Market in improving market asset structure, emphasizing the need to attract technology-driven enterprises [2]. - On the funding side, he advocates for relaxing restrictions on long-term funds, such as insurance capital, entering the market, citing the national social security fund's average long-term return of approximately 8% as evidence of potential risk-return alignment [2]. - He stresses the importance of enhancing market confidence and stability, suggesting a transition from a "four-sided" to a "five-sided" market structure, with the central bank acting as a stabilizer [2]. Group 3: Legal and Institutional Framework - Wu Xiaoqiu highlights the core role of legal construction in capital market reform, stating that transparency is the starting point for modern fairness [2]. - He calls for strengthening the responsibilities of intermediary institutions and shifting from primarily administrative penalties to a legal system that balances civil compensation and criminal penalties [2]. - There is an expectation for breakthroughs in opening up the market, including allowing foreign high-tech companies to list in China, contributing to the establishment of a new international financial center [2]. Group 4: Overall Summary - The reform of China's capital market has entered a critical phase of systematic reconstruction, focusing on incentivizing innovation and effectively managing wealth to support the country's journey towards modernization [2].