On June 5, Cheng Hehong, Chief Counsel of the China Securities Regulatory Commission (CSRC), addressed the 2025 Tianjin Wudadao Financial Forum, emphasizing the importance of fostering long-term and patient capital. He highlighted the need to refine the long-cycle evaluation framework for private equity funds to better align with the growth trajectory of technology innovation enterprises. Cheng Hehong voiced support for the development of private equity secondary market funds (S funds) and advocated for formalizing the pilot program for fund share transfers, while simultaneously expanding the scope of the pilot that allows funds to distribute stocks to investors in kind, thereby enhancing capital liquidity. Furthermore, he underscored the commitment to guiding medium and long-term funds into the market, refining relevant regulations, and ensuring that these funds are deployed for sustained investments. Cheng Hehong also stressed the adherence to fundamental legal principles in equity investments, emphasizing the importance of establishing and refining a fair and equitable legal framework between private equity investment funds, technological innovation enterprises, and their founding shareholders.