How to "stabilize" market expectations? The fund industry focuses on six hot spots: the supervision of long-term capital entering the market is mainly based on dredging

editor's note: Recently, the covid-19 pneumonia epidemic outside China, International Geopolitics, commodity markets and other variables have increased sharply, bringing new major challenges to China's economic growth and global economic recovery. The "March 16" meeting of the Finance Committee of the State Council and the "March 21" meeting of the national Standing Committee clearly put forward that targeted measures should be taken to stabilize expectations and stabilize the development of the capital market. Confidence is more valuable than gold. Since March 27, the Securities Times Securities Company China has launched a series of reports on "boosting market confidence and stabilizing the capital market". Through extensive interviews with institutional figures in the securities industry, fund industry, venture capital industry, experts and scholars, as well as representatives of listed companies and enterprises, we will listen to the voice of the market, gather the wisdom of all parties, gather more consensus and jointly contribute to the stability of the capital market

The meetings of the financial committee of the State Council and the executive meeting of the State Council have been held one after another recently to respond to hot market issues in a timely manner, put forward the deployment of comprehensive measures to stabilize market expectations and maintain the stable and healthy development of the capital market. On March 25, a spokesman for the China Banking and Insurance Regulatory Commission said that it would promote the establishment of a financial stability guarantee fund as soon as possible to accumulate reserve funds for major risk disposal.

The signals released by the above meeting aroused market attention. The Chinese reporter of securities times · securities firm interviewed the chairman, general manager, senior manager and business backbone of a number of public and private funds, learned that the industry is quite concerned about macroeconomic operation, private economic development, industrial supervision, capital market reform, opening to the outside world and other topics, and actively put forward policy suggestions.

fiscal policy and monetary policy work together

A number of respondents said that the meeting sent a signal of stabilizing the macro economy, financial market and capital market, which effectively improved investors' confidence in policies and fundamentals.

Xuanwei, chief strategist of Huaxia Fund said that the meeting made it clear that steady growth is the top priority, macro-control is expected to increase, liquidity will be further relaxed, which is conducive to the improvement of market risk appetite.

Wells Fargo Fund believes that the meeting stressed that under the current market operation background, policies that have a significant impact on the capital market need to be coordinated with the financial management department in advance, and the financial commission can be held accountable when necessary. This key statement has greatly stabilized market expectations and effectively reduced the capital market's concern about the policy uncertainty of various departments.

In view of how to further promote the smooth operation of the capital market, Zheng Xiaoqiu, general manager of Mingshi Partnership Fund suggested that we should continue to strengthen the coordination between fiscal policy and monetary policy, and finance should make precise efforts from both new and old infrastructure to achieve effective physical workload faster; Monetary policy will continue to focus on stability, create a reasonable and sufficient liquidity environment for achieving economic growth goals, and effectively guide market expectations.

Chongyang investment partner and head of strategic research department Kou Zhiwei suggested that fiscal policy pay more attention to residents. He said that the damage to the residential sector has been the main feature of the economy since 2020, and the force direction of the policy is also mainly aimed at enterprises, especially those with relatively good situation such as manufacturing. Monetary policy recommendations are substantially loose. He believes that China's risk-free interest rate deviates from a reasonable level to some extent. After considering the capital cost, enterprises may not be able to make profits, the burden of residents' housing loans is heavy, and the social expected rate of return is high, resulting in turbulence in the capital market.

industry regulatory policies focus on dredging

Since the beginning of this year, in the face of the complex and severe economic situation outside China, all regions and departments have stepped up efforts to stabilize growth and support the real economy, the industrial economy has recovered steadily, and enterprise profits have increased slightly. One of the core competitiveness of the capital market lies in its ability to serve the real economy. Many financial institutions have made suggestions to serve the real economy, and the industry regulatory policies are more dredged and less blocked. At the current stage, the market needs to see the practical implementation of more positive policies to enhance the confidence of market subjects.

Boshi fund director Changjiang Xiangyang put forward that some industries are facing some practical problems to be solved, such as new energy and new energy vehicle industries, facing the pressure of ensuring the supply of some raw materials, and look forward to the corresponding help of the government; For example, the game industry is related to a large number of jobs. We look forward to adjusting the distribution of edition numbers as soon as possible on the premise of maintaining the healthy development direction of the industry.

Harvest Fund said it would actively implement various financial stability policies, adhere to long-term ism in the process of investment and research, give better play to the role of professional institutional investors in serving the real economy, and promote the optimization, adjustment and upgrading of the real industrial structure.

strengthen the opening-up and cooperation of capital markets

In the view of many financial institutions, the meeting of the financial committee of the State Council also conveyed an important spirit that the state and policy attitude of China's capital market opening to the outside world have not changed, and enterprises are encouraged to go out and overseas funds come in.

Liu Jianping, general manager of China Europe Fund believes that from a global perspective, China's economy is very robust and growing, and such an excellent fund is basically attractive to all kinds of international investors. Therefore, in the past few years, the scale of international funds participating in China's capital market in various forms has maintained rapid growth. With the promotion of institutional two-way opening of China's capital market, it is believed that more and more international investors will pour in and be optimistic about the Chinese market.

It is suggested that the Chinese capital market and the Chinese capital market should be further opened, and the Chinese capital market should be strengthened; Continue to strengthen communication with US regulators and reach an agreement on China US audit and supervision cooperation as soon as possible.

Xingshi investment believes that the restrictions on foreign investment should be further optimized, such as the appropriate expansion of the subject matter of the Shanghai Shenzhen Hong Kong stock connect, the increase of domestic risk hedging instruments, the appropriate opening of stock index futures, etc. This will contribute to the further inflow of overseas funds, enhance the international status of China's capital market and further China's participation in international financial governance. China's active participation in international financial market governance, in turn, can help prevent and better resolve cross-border capital market risks.

effectively play the role of "ballast" of long-term capital market

As the largest category of institutional investors in China's market, public funds play an important role in maintaining the stable development of the capital market. Many industry insiders interviewed generally said that it is of great significance to increase the proportion of long-term funds entering the market.

In terms of increasing the proportion of long-term funds, Yang Xiaosong, general manager of China Southern Fund put forward three suggestions: first, vigorously promote the healthy development of the second and third pillars of pensions and deal with the pressure of national aging; Second, continue to promote the reform of the capital market, promote internationalization and realize the comprehensive registration system; Third, China's economic and industrial policies further improve the synergy with financial supervision, communicate with the market in time, and guide the market expectation to be reasonable and stable, so as to attract more long-term funds. Yang Xiaosong said that this was highlighted at the special meeting of the financial committee. We believe that this is a very important step for the development of China's capital market.

Han Xianwang, chief economist of huitianfu Fund also said that the proportion of long-term funds needs to be further improved. In recent years, the "irrational decline" in the A-share market has occurred from time to time. To a certain extent, the voice of long-term funds is still limited and the proportion of short-term funds is relatively high, resulting in ups and downs in the market. Therefore, the scale of long-term capital entering the market needs to be further improved to give more effective play to the role of "ballast" of long-term capital market.

further enrich the capital market product line

With the development of the capital market becoming more and more mature, in order to better meet the diversified investment needs of the capital market and investors, institutional suggestions stimulate the product innovation vitality of the fund company and enrich the diversified product line.

Boshi Fund said to strengthen product innovation, focus on industries that need key support, and promote the revitalization of equity or stock assets through raising funds through new products. Boshi fund, for example, can further deepen and help the development of real enterprises by taking public REITs of infrastructure as the starting point. It is considered that infrastructure REITs play a positive role in reducing enterprise asset liability ratio, preventing and resolving hidden debt risk, improving enterprise reinvestment ability, improving infrastructure operation efficiency and promoting a virtuous circle of investment.

For enriching the capital market product line, Wang Chen, CEO of Jiukun investment put forward two specific suggestions. One is to encourage the development of more index funds and quantitative index enhanced funds and expand the bull power of A-share stability. Second, introduce and improve the market maker system to increase the effective depth and toughness of the market. It is suggested to carry out the pilot of the market maker mechanism in China, which can not only improve liquidity and maintain transaction activity, but also stabilize market fluctuations, promote price discovery, and help cultivate professional investors and expand the team of institutional investors.

investor education has a long way to go

In recent years, the wave of residents' wealth allocation has opened, the Internet of superimposed wealth management and asset management industries has significantly accelerated, and the equity market has ushered in great development. However, the awareness of matching risk and return of some investors has not been fully established, and many institutions said that investor education still needs to be further strengthened.

Jiang Xiangyang suggests that public fund companies continue to improve investor services, pay attention to market hotspots and the direction concerned by investors, enhance the pertinence of investor company and enhance the sense of acquisition of investors. He said that public offering institutions should express firm confidence in the resilience of China's economic development. Although the capital market is improving in the long term, short-term fluctuations are inevitable. Public offering managers should adhere to being partners with customers, go through the fog with investors, overcome impetuosity with faith, embrace change with innovation, practice responsibility with action, and actively give full play to the due role of public funds in maintaining the stability of the capital market.

Han Xianwang said that investor education still has a long way to go. Due to the good performance of the equity market in recent years, some investors underestimated the risks implied in equity investment, and the awareness of matching risk and return has not been fully established. Therefore, in the process of decline, the redemption pressure of products will also increase. In the future, the education of resident investors should be further strengthened, and the investment concept of long-term investment and matching risk and return should be established to adapt to the era of big wealth and big asset management

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