The China Securities Regulatory Commission (CSRC) has responded positively to the current valuation of A-shares in the market. At a press conference on January 12, chaired by spokesperson Gao Li, the CSRC addressed market concerns regarding the current state of the A-share market.
During the meeting, Yan Bojin, Director of the Issuance Department, Guo Ruiming, Deputy Director of the Listing Department, and Lin Xiaozheng, Deputy Director of the Institutions Department, were present to field questions from reporters. Lin Xiaozheng stated that the consensus in the industry is that the A-share market is currently undervalued and holds significant long-term investment potential.
She emphasized that despite the current market trend, the basic outlook for China’s economic recovery and long-term improvement remains unchanged. Additionally, Lin Xiaozheng highlighted that the current valuation level of the A-share market is at a historical low, presenting a favorable time for counter-cyclical investment strategies.
In response to this assessment, the CSRC is actively studying and formulating an incentive and restraint mechanism for counter-cyclical investment strategies. The focus is on encouraging institutions to prioritize functional prime positions in their investment decisions.
The CSRC’s proactive response to market concerns aligns with their efforts to support and guide investment activities, particularly in the current economic climate. With their continued focus on long-term value and potential returns, the CSRC aims to provide stability and opportunity within the A-share market.
This article was published in Beijing.