The China Securities Regulatory Commission held two meetings last week, both of which mentioned the endogenous stabilization mechanism of the market.
On March 16, when the China Securities Regulatory Commission held an enlarged meeting to convey the spirit of the special meeting of the Financial Committee of the State Council, it said that it would give full play to the role of the marketās endogenous stability mechanism and vigorously promote the quality improvement of listed companies; It is proposed to adhere to the word of stability, further improve the endogenous stability mechanism of the capital market, advance the resolution of key and sensitive issues involving capital market expectations, ecology, and the environment, and make every effort to maintain the smooth operation of the market.
Experts believe that giving full play to the role of the endogenous stabilization mechanism in the capital market will help smooth the irrational and violent fluctuations in the stock market. The key is to improve the quality of listed companies, optimize the market ecology, and actively guide different types of medium and long-term institutional investors to enter the capital market, so that all kinds of investors can “blossom”.
ććGuide all kinds of investors to participate
ććForm a “hundred flowers blooming” situation
In fact, in recent years, regulators have been emphasizing the role of the capital market’s “endogenous stabilization mechanism”. The 2022 CSRC System Work Conference proposed that “we must adhere to deepening reform and opening up, and adhere to the idea of āāreform to solve development problems, stabilize market expectations, and activate market development momentum and endogenous stability mechanisms.”
The 2021 CSRC system work conference also proposed to implement the concept of “non-intervention” and improve the endogenous stability mechanism of the market.
Talking about how to further improve the endogenous stability mechanism of the capital market, Yin Zhongli, a researcher at the Capital Market Research Office of the Institute of Finance, Chinese Academy of Social Sciences, was accepting “securitiesThe reporter of the Daily said in an interview that various investors should be actively encouraged and guided to participate in the market, so as to form a situation of “a hundred flowers blooming” and prevent the rapid expansion of the scale of a single institutional investor in a short period of time, resulting in the formation of consistent expected risks.
“The more complex an ecosystem is, the more stable it is. Different types of investors have different views and perspectives, and only when there are differences in the market can it be stable. When a certain type of institutional investors grows rapidly within a certain period of time and becomes the market’s favorite Unstable factors will appear when the trend is not stable, and supervision should pay attention to preventing such risks.” Yin Zhongli said.
“Stabilizing the market, stabilizing expectations, preventing and defusing financial risks, and serving the real economy with high quality are several major tasks in the capital market in 2022.” Wuhan University of Science and Technology FinancesecuritiesDong Dengxin, director of the research institute, suggested that listed companies should be encouraged to stabilize the market.reposhares, encouragementfund companyself-purchasefundand encourage long-term institutional investors to increase the allocation ratio of equity assets.
ććneed to speed up implementation
ććThe spirit of the special meeting of the Finance Committee
In the special meeting of the Financial Committee and the relevant meetings held by the China Securities Regulatory Commission, they all responded to the hot issues of the current market, such as the issue of Chinese concept stocks, preventing and resolving real estate market risks, and the platform economy. Experts believe that the key lies in how to implement.
“The short-term policy bottom has emerged, and the key issue at present is how to implement the spirit of the special meeting of the Financial Committee, stabilize the market’s confidence and expectations, and ensure the supply of funds.”Orient SecuritiesChief Economist Shao Yu accepts thesecuritiesDaily reporter said in an interview.
Shao Yu believes that to solve key and sensitive issues involving capital market expectations, ecology, and the environment, we should start from two aspects: the first is to set “traffic lights” for capital. How to determine the disorderly expansion of capital will affect the investment direction of a large number of investors in the capital market needs to be further clarified. Secondly, in response to the issue of Chinese concept stocks, it is necessary to further clarify the channels for companies to go public overseas and the channels for the return of Chinese concept stocks.
Yin Zhongli believes that there are three main issues facing the current key issues. One is the registration system reform. The market-wide registration system reform cannot be rushed, and it needs to be steadily advanced after evaluating the operating effects of various systems on the Science and Technology Innovation Board and the ChiNext; The real estate market, to a certain extent, the risks of the real estate market will directly affect the operation of the stock market. To stabilize the stock market, the real estate market should be stabilized first, and the most urgent task is to alleviate the risks.real estate developmentThe liquidity risk of enterprises; the third is the issue of Chinese stocks, which requires China and the United States to reach a cooperation agreement on cross-border supervision and auditing.
“In addition, when the relevant policies of the capital market are introduced, it is necessary to give the market a stable expectation.” Yin Zhongli further said.
Dong Dengxin also holds the same view. He believes that in terms of stabilizing expectations, when capital market-related reforms are advancing, it is necessary to make arrangements and arrangements in advance, and release information in advance, so that the market and investors can form clear and better expectations for institutional changes. In addition, in terms of preventing and resolving systemic financial risks, regulatory authorities need to coordinate operations, cooperate with each other, carry out macro-control, and respond to and respond to financial risks that have occurred as soon as possible.
(Article source: Securities Daily)