On April 22, Yi Huiman, Secretary of the Party committee and chairman of the CSRC, presided over the Party committee (expansion) meeting to convey and study the deployment of the special meeting of the financial committee of the State Council on the morning of April 22 on implementing the spirit of the recent important meeting of the Party Central Committee on economic and social work, analyzed the key and sensitive issues concerned by the current market, studied response measures and policy reserves, and re implemented and promoted the relevant arrangements of the financial committee of the State Council.
The meeting stressed the need to respond to market concerns in a timely manner, guide market expectations, stimulate market vitality and potential, further improve market resilience and promote the stable and healthy operation of the capital market.
Recently, various departments, including the CSRC, issued a number of policies and signals to stabilize the market.
CSRC: guide market expectations and promote the stable and healthy operation of the market
The CSRC conveyed and studied the deployment of the special meeting of the financial committee of the State Council on the morning of April 22 on implementing the spirit of the recent important meeting of the CPC Central Committee on the current economic and social work, analyzed the key and sensitive issues concerned by the current market, studied the response measures and policy reserves, and re implemented and promoted the recent arrangements of the financial committee of the State Council.
The meeting stressed the need to respond to market concerns in a timely manner, guide market expectations, stimulate market vitality and potential, further improve market resilience and promote the stable and healthy operation of the capital market.
recently, many ministries and commissions have made joint efforts to stabilize the market
Recently, there have been some fluctuations in the capital market. Various ministries and commissions have issued a number of policies and signals to stabilize the market. On April 21, the CSRC held a symposium for institutional investors, which was attended by the main heads of the national social security fund and some large banking and insurance institutions. The CSRC said that the long-term fundamentals of China’s economy have not changed, the ecology of the capital market has been continuously optimized, the quality of listed companies and the structure of investors have shown a good trend, the residents’ demand for wealth management has been strong, and the international attraction has been increasing. At present and in the future, the development of the capital market is still in an important period of strategic opportunities.
The CSRC calls on all institutions to accurately recognize changes, respond scientifically and actively seek changes, take improving investment management ability, especially equity investment ability, as the core competitiveness, actively expand the breadth and depth of participation in the capital market, give full play to their professional advantages, and contribute to the high-quality development of the capital market. First, enhance investment capacity. Attach importance to equity investment in strategic planning, constantly strengthen the construction of investment and research capacity, expand the team of investment talents, establish and improve the investment system, improve the ability of risk management and control, and optimize the company’s business model; Second, promote the implementation of long-term assessment. Long term assessment is the key mechanism to balance the investment side and the liability side. We should focus on the long term, implement long-term assessment, and promote and strengthen the concept of long-term investment and value investment; Third, give full play to the function of professional investors. Actively participate in the governance of listed companies by exercising voting rights, inquiry rights, suggestion rights and other means, promote listed companies to improve quality, pay attention to cultivating the pricing ability of new share issuance, and play the role of professional buyer; Fourth, increase the proportion of equity investment. Giving full play to the advantages of long-term funds can overcome short-term market fluctuations, make good use of the amount of equity investment, further expand the proportion of equity investment and improve the level of long-term income.
In response to the opinions of the general office of the State Council on promoting the development of individual pensions, the CSRC said that it would accelerate the implementation of various measures to deepen the reform of the capital market, speed up the formulation and introduction of supporting rules and systems for individual pension investment in public funds, improve the construction of infrastructure platforms, and optimize the medium and long-term capital market environment; Continue to strengthen the supervision of institutions and employees, improve the management ability and standardized operation level of managers, strengthen investor protection, ensure the safety and standardization of pension investment and operation, and promote the high-quality development of individual pensions.
When attending the Boao Forum, Yi Gang, governor of the central bank, said that there had been some fluctuations in China’s financial market recently, which were influenced by both external impact factors and internal factors such as the spread of China’s epidemic and the increasing downward pressure on the economy. In the face of these challenges, China’s monetary policy has been laid out in advance, and its prudent monetary policy has increased its support for the real economy. Since December 2021, LPR over 1 year and 5 years has decreased by 15 basis points and 5 basis points respectively. By the end of March this year, the scale of broad money (M2) and social financing had increased by 9.7% and 10.6% respectively, a significant increase over the end of the previous year.
Yi Gang stressed that China will continue to implement a prudent monetary policy, and will comprehensively use a variety of tools to provide more support for small, medium-sized and micro enterprises and increase support for the real economy.
positive factors gather to strengthen the confidence of people in the A-share market
Institutional sources believe that due to the impact of the epidemic plus the rise of US bond interest rates and other internal and external factors, the A-share market has been adjusted recently. However, in the short-term shock of the current round of market, there are also many positive signals, such as the positive entry of northward funds into the market and the relevant departments encouraging long-term funds to increase the proportion of equity investment. The short-term pessimism of some investors does not affect the investment value of a shares, and all parties in the market should have hope for the future market.
Haitong Securities Company Limited(600837) chief economist and chief strategist Xun Yugen said that the current round of adjustment of Shanghai and Shenzhen 300 index has been obvious, and the valuation has been close to the level at the beginning of 2019. The current round of adjustment of SSE 50 index has been obvious, and the valuation has reached a new low since 2019. Gem refers to the current valuation has been at a historically low level. The steady growth policy has been strengthened, and positive progress has been made in epidemic prevention and control. We should have hope for the future.
Liu Gesong, a star fund manager, pointed out in the quarterly fund report that with the convening of the financial committee meeting in the first quarter, the market had obvious bottom characteristics. From a medium and long-term perspective, we are not pessimistic about the future capital market
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