China Emphasizes Enhancing Stability and Healthy Development of Capital Market
During a recent State Council executive meeting, there was a strong emphasis on the need to enhance the consistency of macro policy orientations, strengthen innovation and coordination of policy tools, consolidate and enhance the positive economic recovery, and promote the stable and healthy development of the capital market.
According to the meeting, the construction of a financial power and serving the real economy with high quality are crucial aspects of the full and healthy development of the capital market. While there has been significant fluctuations in China’s stock market, it has been deviating from the stable operation of the current economic fundamentals. This has been attributed to various risks and problems accumulated in the history of the capital market, as well as factors such as economic fundamentals, policies, capital, sentiment, and changes in the external environment.
In order to maintain the stable operation of the capital market, a more prominent position must be placed on it, with more powerful and effective measures taken to prevent systemic risks and stabilize market expectations. The meeting emphasized the need to further improve the basic system of the capital market, pay more attention to the dynamic balance of investment and financing, and continuously improve the quality and investment value of listed companies.
Listed companies have also been called upon to take on a more active role. It is believed that if the performance of most listed companies achieves sustainable growth, investors receive returns from long-term yield growth, and investment risks are controllable, the overall stock market will show an upward trend. Improving the position of listed companies, focusing on professionalism, and respecting the market has been highlighted as crucial for the long-term healthy development of the market.
To achieve these goals, it is necessary to strengthen coordination and cooperation in the innovation of policy tools and create a good development environment for the capital market. All market participants have been urged to rationally understand the current situation of the capital market, make reasonable expectations, and not rush for quick success.
It is clear that the State Council is taking serious steps to ensure the stable and healthy development of China’s capital market by implementing effective policies and measures.