People's Daily: Conditional and capable of maintaining the stability of the capital market

Abstract Since mid-June, the Shanghai and Shenzhen stock markets there has been a more substantial adjustments. With the decline of the index, panic and anxiety in the market have attracted great attention from all sectors of society. The stable and healthy development of the capital market is related to the overall situation of economic and social development, which is related to the vital interests of tens of millions of investors...
Since mid-June, there has been a major adjustment in the Shanghai and Shenzhen stock markets. With the decline of the index, panic and anxiety in the market have attracted great attention from all sectors of society.

The steady and healthy development of the capital market is related to the overall situation of economic and social development, and it is of vital interest to tens of millions of investors. It should be said that it is normal for the stock market to rise and fall. Especially since July last year, the A-share market has accumulated a large increase, and it has its own internal requirements for adjustment and consolidation. However, as far as this adjustment is concerned, the rate of decline in the index is fast, and the decline in individual stocks is relatively rare, and it is relatively rare in the history of A-shares. The ups and downs are not conducive to the stable and healthy development of the market, prompting the A-share market to return to the rational track, which has become an urgent task for the current market development.

We maintain sufficient conditions for the stable and healthy development of the capital market. As far as macroeconomic operations are concerned, the overall economy was stable in the first half of the year, the pace of structural adjustment was accelerating, new products, new formats, and new business models were emerging. The Chinese economy can maintain medium-to-high-speed growth for a long time and move to the mid-to-high end, which provides capital market development. A solid foundation; as far as the market itself is concerned, it has also entered the "fast lane" of development and reform. Vigorously developing multi-level capital markets is a strategic task, supporting domestic and foreign long-term funds to enter the market, cultivating and strengthening institutional investors, launching Shenzhen-Hong Kong Stock Connect in a timely manner, improving Shanghai-Hong Kong Stock Connect, actively and steadily promoting the reform of the stock issuance registration system, and strengthening the supervision of listed companies. Encourage the innovation and development of securities and futures operating institutions, etc., will further consolidate the foundation of market development. In summary, at present, the trend of continued release of the reform and opening-up dividend has not changed. The macroeconomic stability has not changed. The fundamentals of market liquidity have not changed. The pattern of household asset allocation has not changed. The capital market continues. The process of reform and opening up has not changed.

We have sufficient capacity to maintain a stable and healthy development of the capital market. Recently, the People's Bank of China [microblogging] has used various monetary policy tools such as interest rate cuts and continuous reverse repurchase to promote market liquidity at a reasonable level; pension insurance fund investment management methods for public consultation; China Securities Regulatory Commission [Weibo] and relevant institutions intensively played "combination boxing", including allowing the expansion of margin financing and securities lending contracts, optimizing the standards and methods for defaulting of margin financing and securities lending clients, substantially reducing the A-share transaction rate, and substantially increasing capital of China Securities Finance Corporation. Expanding shares, cracking down on market violations and drastically reducing the issuance of new shares. With the gradual release of the effects of policy initiatives, it will form a strong support for market stability. The A-share market has gone through more than 20 years of development. We have accumulated a lot of experience in dealing with the extremes of the market. We also have a lot of policy reserves. Through coordination and cooperation, we can fully promote the market to get rid of the moment. Dangerous."

We must also have firm confidence in the stable and healthy development of the capital market. Confidence is more precious than gold. What investors expect from the future will often have a major impact on market operations. Some time ago, investors were panicking about the leverage factor. However, according to the data already published, the securities company's margin financing and securities lending business is operating normally, the risk is controllable, and the risk of off-market fund-raising has been released to a considerable extent. After the market has undergone major adjustments recently, the internal stability forces are also increasing. For the majority of investors, what is needed at this time is confidence rather than panic. When the market rises, irrational chasing is dangerous; after the market is adjusted sharply, irrational killing is also not desirable.

See the rainbow after the storm. Looking back at the development of China's capital market is not a smooth road. We have gone through a detour and have had twists and turns. The market grows in every lesson and lessons learned. This large fluctuation is another baptism for the market. All parties involved in the market should seriously reflect on it, sum up and work together to build a long-term stable and healthy capital market.

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