2026 Two Sessions Set the Tone, Five Major Signals for A-Shares

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Special Topic: United in Effort and Progress, Starting a New Chapter for the 15th Five-Year Plan—2026 National Two Sessions Financial Special Report

Reporter: Cui Wenjing

With clear macroeconomic policy guidance for 2026, a “blueprint” for the future direction of the A-share market has begun to take shape. From the 2026 Government Work Report to a series of statements by Wu Qing, Chairman of the China Securities Regulatory Commission, and leaders of the Shanghai and Shenzhen Stock Exchanges, several key signals indicate that the call for further comprehensive reform of the capital market has already sounded.

Based on comprehensive interviews and analysis by 21st Century Business Herald reporters, five major signals are particularly noteworthy.

1. Key core technology companies will enjoy “normalization” of listing, financing, and mergers and acquisitions through green channels.

2. The Growth Enterprise Market (GEM) will open its doors wider to new consumer and modern service industry companies.

3. The GEM itself will undergo six in-depth reforms, focusing on new industries, new business models, and new technologies.

4. The refinancing mechanism will be fully optimized, emphasizing “supporting excellence and supporting science and technology.”

5. The bottom line of “risk prevention and strengthened regulation” remains firm, with continued crackdowns on financial fraud and illegal activities; hot topics, concept speculation, and manipulation will also be under strict scrutiny.

Signal 1: Key core technology enterprises will gain three “green channels”

Since 2024, a series of supportive policies for sci-tech innovation enterprises, including the “Eight Measures for the STAR Market,” “Six Measures for Mergers and Acquisitions,” and the “1+6” reform plan for the STAR Market, have been introduced successively, clearly indicating the trend of supporting sci-tech innovation companies. However, given the diversity of sci-tech enterprises, market attention has always focused on which companies are favored by policies.

From the 2026 Two Sessions, one major signal is particularly noteworthy.

The 2026 Government Work Report for the first time proposed “building a new form of intelligent economy.” This marks the first time that intelligent economy has been included in the government work report.

In 2024, “Artificial Intelligence+” was first incorporated into the government work report, leading to rapid support from the capital market for related industries. Now, with intelligent economy also included for the first time, it indicates that the capital market’s support will further increase.

Yi Chengqi, Deputy Director and Researcher at the Artificial Intelligence Department of the National Information Center under the National Development and Reform Commission, mentioned that one measure to boost intelligent economy is to “increase the supply of resources such as computing power, data, algorithms, scenarios, and funding, fully explore applications of artificial intelligence and new intelligent consumption demands, continuously achieve breakthroughs in AI technology, and cultivate a batch of easy-to-use, affordable, and convenient AI products and services.”

It is important to note that, alongside AI products, “supporting service systems” and “new intelligent consumption demands” are also emphasized. This may imply that enterprises providing supporting services for intelligent economy and AI could also receive more policy support in financing and other areas.

Another policy focus is on “technology enterprises with key core technologies.” These key core technologies are not limited to intelligent economy and AI but include various hard-tech companies that help overcome “bottleneck” issues.

The 2026 Government Work Report states: “Strengthen full-chain and full-lifecycle financial services for technological innovation, and implement ‘green channels’ for listing, financing, and mergers and acquisitions for tech enterprises with key core technologies to support innovation through financial means.” The “green channels” explicitly include listing financing and mergers and acquisitions.

Subsequently, Cai Jianchun, General Manager of the Shanghai Stock Exchange, mentioned that for tech enterprises with breakthroughs in key core technologies, three “normalizations” will be established—normal listing, normal financing, and normal M&A. This means that these enterprises will receive greater support through comprehensive capital market policies.

At the same time, Cai Jianchun stated at the CPPCC Economic Sector Group meeting that, under the premise of market stability, efforts should be made to further enhance the functions of the capital market, focusing on financing and M&A support for technological innovation and transformation enterprises, especially in the STAR Market, to implement a normalized listing mechanism for tech enterprises with key core technologies and further strengthen regular financing functions.

Signal 2: New consumer and modern service industries open new opportunities for A-share listings

According to Wu Qing’s speech, one of the biggest benefits for the IPO market is that the GEM will open its doors wider to new consumer and modern service industry companies.

Encouraging listed companies will no longer be limited to sci-tech enterprises themselves; high-quality enterprises that can provide direct or indirect supporting services to sci-tech companies will also have opportunities to list.

The most direct evidence is Wu Qing’s mention of upcoming reforms to the GEM, stating, “Actively support innovative and entrepreneurial enterprises in new consumer and modern service industries to issue and list on the GEM.”

Since the “827 New Policy” in 2023, cases of consumer and service companies listing on A-shares have been rare. Many investment banks and underwriters believe that these companies have limited prospects of listing on the Beijing Stock Exchange and are almost impossible on the Shanghai and Shenzhen exchanges, leading most to recommend listing in Hong Kong. Now, with Wu Qing’s clear statement, new opportunities for these companies to list on A-shares have emerged.

It is important to note:

• The first point is that the GEM is the preferred board for these companies.

• Not all consumer and service companies are eligible; they must align with innovation and entrepreneurship, fit the GEM’s positioning, and support industries encouraged by the state.

• Third, insiders understand that in the short term, large-scale listings of these companies are unlikely; only top performers—those linked to policies supporting intelligent economy, key core technologies, or with highly consistent profitability and operational data—are expected to lead.

In other words, the new policies supporting high-quality innovative and entrepreneurial enterprises in new consumer and modern service industries to list on the GEM are promising but should be approached with cautious optimism.

Signal 3: The GEM promotes six reform measures focusing on new industries, new business models, and new technologies

Since Wu Qing first announced the “1+6” policy for the STAR Market at the Lujiazui Forum in June 2025, there has been high market expectation for comprehensive reform of the GEM.

Now, at the National Two Sessions, the reform roadmap for the GEM has been clarified.

The policies supporting the listing of new consumer and modern service enterprises are part of the series of GEM reforms. These aim to expand the inclusiveness and coverage of the GEM system. Among these reforms, one measure will help broaden the coverage—adding more precise and inclusive listing standards to better support the development of new industries, new business models, and new technologies.

Shang Yan, Director of the Shenzhen Stock Exchange, also stated that the exchange will further expand the inclusiveness and coverage of IPO and refinancing systems to better serve the development of new industries, new business models, and new technologies.

Wu Qing and Shang Yan both emphasized the focus on “new industries, new business models, and new technologies,” which will be the key support directions for the GEM moving forward.

It is worth noting that some reforms from the STAR Market will also be promoted to the GEM, with three typical measures:

• Launching a pre-approval mechanism for IPOs,

• Allowing eligible companies in review to increase capital from existing shareholders,

• Optimizing new share issuance pricing.

The pre-approval mechanism applies to high-quality innovative companies, especially those with breakthroughs in key core technologies. It does not change substantive disclosure requirements but shortens disclosure cycles, helping companies better protect trade secrets and reduce disclosure pressure.

Meanwhile, the GEM will establish a comprehensive system from recommendation, selection, review, to full-process supervision to better serve local and private economic development.

Wu Qing mentioned that the overall plan is nearly finalized and will be announced and implemented once further improvements are made. Shang Yan said that the Shenzhen Stock Exchange is actively preparing for the deepening reform of the GEM to ensure rapid implementation once the policy is announced.

The specific timeline for the GEM reform remains uncertain. However, the interval from the initial announcement to the official release of the STAR Market “1+6” policy was only 25 days, which could serve as a reference.

Additionally, in promoting the return of Guangdong-Hong Kong-Macao Greater Bay Area enterprises to Shenzhen for listing, Shang Yan introduced that the Shenzhen Stock Exchange has established a special working mechanism, formed a leadership team and dedicated working groups for services, review, and supervision. Currently, companies like Everbright Environment and Yuejiang Technology have announced their return to Shenzhen for listing on HKEX and are undergoing IPO counseling. The exchange conducts dedicated reviews for returning companies, referencing past disclosures in Hong Kong, to enhance review inclusiveness and efficiency.

Signal 4: Optimization of refinancing mechanisms emphasizing “supporting excellence and science and technology”

As a major financing channel for listed companies, refinancing has also received policy support.

Looking at A-share financing, after the “827 New Policy” in 2023, large-scale refinancing slowed down; however, with market recovery, refinancing scale rebounded significantly from 2025, reaching 950.9 billion yuan, a year-on-year increase of 326%. Now, a new round of refinancing benefits is imminent.

According to Wu Qing’s remarks at the two sessions’ economic press conference, a package of measures—including optimizing the recognition standards for strategic investors, launching shelf issuance mechanisms, improving fixed-price increase mechanisms, and streamlining refinancing procedures—will soon be introduced.

Beyond specific measures, three points deserve special attention:

• The current reform aims to emphasize “supporting excellence and science and technology,” mainly targeting high-quality listed companies with good governance and market recognition. After the reform, the review efficiency for such companies’ refinancing will be greatly improved.

• Refinance support will be particularly strong for high-tech innovation companies, with the current standards for “light assets and high R&D investment” on the STAR and GEM being further extended to the main board.

• The tone of strict regulation on refinancing will remain, with enhanced oversight throughout the entire process—from pre-approval, application, review, to fund use.

Two types of violations will be strictly punished: “hype-style” refinancing and illegal changes in the use of raised funds.

It is worth noting that illegal changes in the use of funds, which were once common in IPOs and refinancing, have significantly decreased in recent years due to intensified regulatory crackdowns and penalties.

Signal 5: The tone of “risk prevention and strengthened regulation” remains unchanged, with strict crackdowns on hot topics, concept hype, and manipulation

Since 2024, strict regulation has been continuously promoted, with increased efforts to combat financial fraud, insider trading, and other illegal activities.

Wu Qing’s remarks at the two sessions’ economic press conference indicate that this trend will continue and become even more effective, covering more areas and with more detailed investigations. Four key points are noteworthy:

• First, the “Regulations on the Supervision of Listed Companies” are being drafted.

• Second, a center for discovering clues of financial fraud is being accelerated.

• Third, the construction of third-party monitoring and early warning mechanisms for fraud is underway, with further integration of third-party cooperation in crackdowns.

It is noteworthy that the CSRC has already transferred clues of cooperation in fraud to relevant departments or local governments for lawful handling, with initial results. Meanwhile, the draft “Regulations on the Supervision of Listed Companies” will clarify the CSRC’s authority to impose administrative penalties on third-party fraud facilitators. Once implemented, regulatory authorities’ ability to investigate and punish third-party colluders will be significantly enhanced.

• Fourth, the mandatory delisting of fraudulent companies will continue, with the firm implementation of two “resolutes”—resolutely removing “bad actors” and resolutely breaking the “ecosystem” of financial fraud.

Looking ahead, more fraudulent companies are likely to be forcibly delisted. However, most of these cases will involve the cleanup of historical issues. As problematic companies gradually exit, cases of fraud-related delistings will decrease over time, further improving overall market quality.

For listed companies and their controllers or major shareholders, another key trend to watch is that hot topic hype, concept speculation, and manipulation will be under strict scrutiny.

Wu Qing explicitly stated that behaviors such as hype, concept speculation, and manipulation that harm investors’ interests will be strictly investigated and punished according to law.

It should be noted that in recent months, multiple cases of listed companies being investigated and fined for hype and concept speculation have emerged. Misleading statements, a common issue in such cases, saw as many as five companies newly investigated for suspected misleading disclosures in the first two months of 2026 alone.

(Contributed by Ren Lili, 21st Century Business Herald)