The follow-up policies are worth looking forward to, Securities Times front page: It will take time for market confidence to fully recover
Under the stimulus of multiple favorable policies, the A-share market has rebounded significantly. On August 28th, all three major indexes opened more than 5% higher, with intraday fluctuations falling back. The gains of all three major stock indexes narrowed to about 1%, with over 3600 stocks turning red and the transaction volume of the two markets exceeding 1 trillion yuan. It can be seen that the combination of policies is gradually taking effect, and regulatory authorities are firmly committed to revitalizing the capital market. However, it will take time for market confidence to fully recover, and there are more policies to look forward to in the future.
Since the Central Political Bureau meeting on July 24th clearly proposed "to activate the capital market and boost investor confidence", regulatory authorities have accelerated the launch of a number of practical and effective policy measures, such as halving the stamp duty on securities transactions, improving the countercyclical adjustment mechanism of the primary and secondary markets, timely and reasonably adjusting the pace of IPO and refinancing, promoting the comprehensive implementation of public fund rate reform, and reducing the proportion of settlement reserve payment. A series of "three-dimensional" reform measures have been coordinated and implemented in the investment, financing, and trading sides, aiming to boost market sentiment, stimulate market vitality, stabilize and boost market confidence from a policy perspective, and fully maintain the smooth operation of the stock market, bond market, and futures market.
Objectively speaking, the capital market is highly sensitive to macroeconomic factors, industry policies, and the performance of micro business entities. Its trend is the result of a combination of fundamental, policy, funding, emotional, and overseas environmental factors. It will take some time for the market to fully return to normal operation and investor confidence to fully recover. We cannot just look at the short-term fluctuations in a single day and hold a skeptical attitude towards the effectiveness of policy "combination punches". All parties in the market need to be patient and let the bullets "fly" for a while. Only the real gold and silver discounts on the trading side will gradually show effect, and market participants will truly feel the benefits brought by policy red envelopes. Only then will the stock market emerge from the expected candlestick chart in stable operation.
At present, the policy toolbox for active capital markets has been opened, and regulatory authorities are continuously looking for ways to promote reform measures in introducing fresh water, reducing transaction costs, and improving transaction smoothness. There are more policies worth looking forward to in the future. If we launch a reform plan for the capital market investment side, strengthen cross departmental horizontal collaboration, improve supporting systems and mechanisms such as taxation and accounting, increase the introduction of various medium and long-term funds, and increase the proportion of equity investment; Guide listed companies with stable operating cash flows to distribute mid-term dividends and strengthen information disclosure constraints on low dividend companies; Extend the trading hours of A-share market and exchange bond market appropriately. These measures will break through the pain points and bottlenecks of incremental capital entering the market, improve the investment attractiveness of listed companies, and reshape the capital market ecosystem.
Activating the capital market and boosting investor confidence is a systematic project that involves various aspects of work and requires long-term efforts. I believe that with the continuous increase of stable growth policies, effective markets and promising governments will be better combined, macro policies and micro policies will complement each other, and the policy dividends will be accelerated. The Chinese stock market is expected to operate steadily and further develop healthily.