Releasing numerous signals, the capital market welcomes a package of policy measures | confidence | policies | economy | investment | investors | capital | market

The Political Bureau meeting of the Central Committee of the Communist Party of China held on July 24th clearly proposed to "activate the capital market and boost investor confidence.". On August 18th, the relevant person in charge of the China Securities Regulatory Commission (CSRC) gave an interview to the media, clarifying a package of policy measures to implement this important decision deployment and responding to market attention hotspots.

A package of policy measures starts from the investment side, financing side, trading side, etc., including six major measures: accelerating investment side reform, improving investment attractiveness of listed companies, optimizing and improving trading mechanisms, totaling 25 specific reform measures. What is the background of this series of policies? What signals have been conveyed to the market?

Stable capital market expectations are of great significance for maintaining overall economic and social stability

The Political Bureau meeting of the Central Committee of the Communist Party of China held on July 24th clearly proposed to "activate the capital market and boost investor confidence", making the tone and direction of the capital market more positive and clear.

The relevant person in charge of the China Securities Regulatory Commission stated that this reveals clear information: stabilizing capital market expectations is of great significance for maintaining overall economic and social stability.

"The capital market has a high correlation with the economy and is known as an economic barometer, which has a significant impact on the expectations and confidence of all parties." Zhang Hui, General Manager of Huitianfu Fund, said that a stable and active capital market is beneficial for investors and the whole society to better establish confidence and expectations for economic development. Meanwhile, a capital market with a virtuous cycle of investment and financing not only contributes to high-quality economic development, but also serves as an efficient way to expand domestic demand and promote consumption.

The operation of the capital market cannot be separated from the macroeconomic environment. After a smooth transition in epidemic prevention and control, economic recovery is a wave like development and a tortuous progress. China's economy has enormous development resilience and potential, and the long-term positive fundamentals have not changed.

Industry insiders point out that to observe and interpret the economic situation and the operation of the capital market, it is necessary to not only see the short-term and phased "shape", but also understand the long-term and fundamental "trend".

Zhao Jun, founder and investment director of Danshui Spring Investment, believes that we should seek more certainty from uncertainty and find highlights and opportunities from change. "The certainty we see is that many industries are still growing, technology is advancing, and businesses are creating value."

A package of policies delivers confidence to the market through a combination of punches

In the view of Liu Xiaoyan, General Manager of E Fund, the series of policy measures released by the China Securities Regulatory Commission this time have played a "combination punch" in introducing medium and long-term funds, rewarding investors, and improving trading convenience. They will effectively enhance market vitality, efficiency, and attractiveness, stabilize market expectations and investor confidence, better leverage the functions of capital market resource allocation, price discovery, and risk management, and achieve a positive interaction with the real economy.

"This policy 'combination punch' is in line with the long-term ideas of capital market system construction. Zhao Jun believes that the prominent feature of this policy will shift the goal orientation of reform from biased financing to balanced and investment friendly investment and financing.".

The heads of multiple market institutions pointed out that this package of policies emphasizes the introduction of more fresh water into the capital market, and many contents mention how to expand the scope of investors, facilitate investment, and enrich products. On the other hand, focusing on improving the attractiveness of listed companies, a series of measures have been proposed to improve the quality of listed companies, including dividends, repurchases, and the construction of a Chinese characteristic valuation system, which is conducive to playing a role in supporting the good and limiting the bad, and better returning investors.

Lin Chuanhui, Chairman of Guangfa Securities, believes that as various measures continue to be implemented, the policy effects will gradually become apparent, which is expected to enhance investors' sense of gain, stabilize their expectations for the future, and enhance their motivation to allocate more assets in the capital market.

"'Combination Fist 'is conducive to stimulating the wealth effect of the capital market, allowing investors to share the achievements of China's economic growth and corporate innovation and development, and promoting a positive cycle between the capital market and domestic consumption," said Lin Chuanhui.

Active capital markets and boosting investor confidence require strong joint efforts

It should be noted that "revitalizing the capital market and boosting investor confidence" is a systematic project that involves various aspects of work and requires the formation of a strong synergy.

The relevant person in charge of the China Securities Regulatory Commission (CSRC) stated that in recent times, the CSRC has increased cross departmental communication and coordination, and is focusing on studying and promoting several important measures. For example, promoting the optimization of capital market related tax arrangements such as the timing of individual income tax payment for equity incentives of listed companies; Promote the establishment and improvement of a long-term assessment mechanism for insurance funds and other equity investments, and encourage them to increase their efforts in equity investments; Guide and support the active entry of bank wealth management funds into the market.

"We will coordinate efforts to activate the market and prevent risks, strengthen supervision, and work together with relevant parties to prudently prevent and dispose of risks in key areas such as urban investment bonds and real estate, resolutely maintaining market stability and operation," the person in charge said.

Chen Ge, General Manager of Fuguo Fund, believes that with the continuous strengthening of top-level design and collaboration among relevant departments, policy synergy will continue to form, which will effectively boost investor confidence and activate the capital market. As an important participant in the market, public funds can play a greater role in vigorously developing equity funds, continuously improving investment and research capabilities, and increasing efforts to purchase equity funds under their own umbrella.

Liu Jian, Chairman of Shenwan Hongyuan Securities, said that securities firms should be good gatekeepers of the capital market, grasp the inherent relationship between the registration system and improving the quality of listed companies, and help the capital market to provide high-quality medium - and long-term assets and develop a virtuous cycle.