Securities Daily Front Page: Active Capital Markets Must Have the Courage to Fight Bulls Policy | Own | Economy | Aspect | Need | Consumption | Capital | Market
Recently, economists such as Wu Xiaoqiu have made statements, proposing that the growth of domestic demand requires a certain material foundation, and income growth is this foundation. In fact, in terms of restoring and expanding consumption, the country has put in a combination of punches. In addition to policies such as reducing taxes, improving the social security system, promoting tourism consumption, optimizing real estate and car consumption, the Central Political Bureau meeting also mentioned "activating the capital market and boosting investor confidence.". Active capital markets have become the most crucial factor in stimulating consumption at present.
In the past decade, China's economy has taken off rapidly, its economic structure has been continuously optimized, and the living standards of residents have undergone a qualitative leap. However, the comprehensive weighted average price to earnings ratio of A-share companies in Shanghai and Shenzhen is about 16 times, which is seriously underestimated compared to China's current economic development and social environment. Our country needs a capital market closely related to the growth of the national economy, and a barometer that can truly reflect the national economy.
The capital market is the market with the most significant wealth effect. At present, China has 220 million A-share investors and 700 million fund investors, which will directly drive consumption and boost the economy by increasing investor wealth. According to industry estimates, if the stock index rises by 1000 points, it will directly drive a 25 trillion yuan increase in market value and wealth.
Establishing a strong capital market is a necessity in the game of great powers, and the rise of great powers requires a strong capital market. The core goal of the capital market is pricing, and a market with strong pricing functions is reflected in two aspects: abundant liquidity and large circulation. Therefore, China should play a good role in the pricing power of the capital market, continue to promote reform, enhance liquidity through rising stock prices, expand liquidity, fill in value gaps, and then have pricing power at the high-end of various industrial value chains, with the ability to efficiently participate in global competition.
In terms of active capital markets, the China Securities Regulatory Commission, the Beijing Stock Exchange, and the China International Capital Corporation will introduce a series of policies. The China Securities Regulatory Commission stated that it will comprehensively implement policies from the investment side, financing side, trading side, and other aspects, and work together to ensure that the Party Central Committee's major policies are fully implemented in the capital market. I believe that through the implementation of strong combination policies by regulatory authorities, the market will be more fair, just, transparent, and dynamic. A relatively mature and more active capital market can provide participants with a better experience; The market operates in a standardized manner, with high trading efficiency, and market prices will objectively reflect the value creation ability of listed companies.
In summary, an active capital market requires the courage to fight fiercely, as well as the courage and wisdom to have a tiger in the heart and sniff the rose.