Economic Daily Jin Guanping: Active Capital Market Needs Multi party Efforts Investors | Capital Market | Economic Daily
The Central Political Bureau recently held a meeting emphasizing the need to activate the capital market and boost investor confidence. Active capital markets have important practical significance. Currently, China's economic operation is in a critical period of recovery and development, facing numerous challenges such as stabilizing growth and expanding domestic demand. As a hub that drives the whole body, an active capital market can attract more investors to participate, form a capital effect, and then support enterprise technological innovation, promoting industrial transformation and upgrading; It can also increase the wealth and income of residents, promote private consumption, and play a role in promoting economic and social development.
An active capital market with solid foundation support. After more than 30 years of reform and development, the overall size of China's capital market has leapt to the forefront of the world. Many progress has been made in basic institutional construction, multi-level market improvement, and investor rights protection, especially since the launch of the comprehensive registration system reform, the market structure and market environment have been significantly optimized. It is timely to further enhance market activity and enable it to play an efficient resource allocation role that matches the stage of national economic development.
The active capital market and boosting investor confidence are interrelated and complementary. If the market lacks vitality, investor confidence will be greatly affected; If investors lack confidence, market vitality cannot be discussed. Therefore, in order to activate the capital market, the focus is on improving wealth effects and stabilizing investor expectations. It is necessary to comprehensively implement policies and coordinate efforts from various aspects such as investment, financing, and trading. On the investment side, it is necessary to make greater efforts to introduce medium - and long-term funds. Currently, the proportion of institutional investors in the A-share market is still not high enough, and the proportion of medium - and long-term equity investments is still relatively small. The short-term assessment mechanism has exacerbated market volatility. In the future, it is necessary to appropriately relax the entry barriers for insurance, annuities, social security funds and other funds, optimize the requirements for the proportion of various medium and long-term funds entering the market, and promote the improvement of supporting systems and mechanisms such as long-term assessment, tax incentives, and accounting, to play a positive role as a "stock market stabilizer" for medium and long-term funds. On the financing side, it is urgent to continue improving the quality of listed companies. The quality of listed companies largely reflects the quality of economic growth and is the source of investment value in the capital market. We need to focus on building more outstanding listed companies that lead the development of industries and technological innovation, and encourage them to become bigger, better, and stronger through mergers and acquisitions. At the same time, we will continue to improve the delisting system, increase market clearance efforts, provide higher quality asset supply, enhance investors' sense of gain, and make the capital market a "reservoir" for the preservation and appreciation of residents' wealth. Continuous optimization of the market environment on the trading side requires long-term efforts. At present, the number of individual investors in the A-share market has exceeded 200 million. Protecting the rights and interests of small and medium-sized investors is a key measure to boost investor confidence. We need to further increase the efforts to prevent and crack down on counterfeiting in the capital market, strengthen the responsibility of intermediary institutions such as accounting firms to ensure compliance, enhance the joint efforts to crack down on systematic and organized fraud, strictly, quickly, and severely investigate typical illegal cases, create a good market ecology that respects the rule of law, and make the market environment more clear, transparent, and orderly. Active capital markets are not about allowing speculation and encouraging speculation. An active capital market should also be a lively and orderly market. When the investment targets are of higher quality, the survival of the fittest is smoother, the trading environment is more standardized, and the investment returns are more stable, the capital market will be popular and full of confidence, playing an increasingly important role in promoting high-quality economic development.
