The State Council Holds Executive Meeting to Discuss Capital Market Operation and Policy Considerations
At a recent State Council executive meeting held on January 22, reports on the operation of the capital market and work considerations were discussed. The meeting highlighted the importance of improving the basic system of the capital market, balancing investment and financing, enhancing the quality and investment value of listed companies, and increasing the entry of medium and long-term funds into the market.
Gao Ruidong, chief economist and director of the research institute of Everbright Securities, emphasized the role of medium and long-term funds in providing stability to the market, especially during periods of irrational fluctuations. Additionally, he noted that these funds, particularly pension funds, play a crucial role in diversifying residents’ asset allocation and allowing them to benefit from economic growth dividends.
In order to promote the entry of medium and long-term funds into the market, Gao Ruidong suggested optimizing the policy environment and institutional arrangements, as well as strengthening the supervision of listed companies to attract more long-term investors.
Furthermore, the meeting proposed enhancing the consistency of macro policy orientations and strengthening the innovation and coordination of policy tools to promote the stable and healthy development of the capital market.
Gao Ruidong highlighted the importance of strengthening policy coordination and expectation management, stating that it will help improve policy transmission efficiency and promote effective qualitative improvement and reasonable quantitative growth in the economy.
It is evident from the meeting that the government is taking steps to ensure the stability and growth of the capital market, with a focus on attracting long-term investors and maintaining policy consistency.
(Editor: Wen Jing)