Bankers and lawyers expect the Chinese government to announce new regulatory measures next year, with analysts noting that clearer rules are likely to improve investor confidence in the regulatory environment.
Analysts believe that in 2022, government measures will be aimed at protecting data and transactions that pose risks to national security. In addition, the authorities may try to strengthen control over private enterprises.
"Investors are facing new regulatory risks in 2021, and these concerns are unlikely to go away anytime soon," said Logan Wright, director of China market research at Rhodium Group.
Alex Roberts, legal adviser at Linklaters in Shanghai, said that next year regulators will carefully analyze the network security of large technology companies. These regulatory measures are being taken ahead of a year when President Xi Jinping is almost certain to achieve his historic third term as Communist Party leader.
"I don't think the regulatory structure is already complete. It will take a couple of years," said Andrew Collier, managing director of Orient Capital Research.
"However, 2022 will be the year when detailed regulatory rules appear," said Chu Yang, a partner at Davis Polk & Wardwell. "It is expected that uncertainty regarding the regulation of stock markets will decrease next year."