2024-03-10 22:53:00
Wu Shan
“Enhance the inherent stability of the capital market.” This is an important deployment of capital market-related work in this year’s government work report.
As an important channel for market-oriented allocation of resources, issues related to the high-quality development of the capital market have been repeatedly discussed. During the National Two Sessions in 2024, members of the delegation made suggestions and suggestions focusing on current market concerns. Among them, increasing the introduction of medium and long-term funds is regarded as the core of investment-side reform and the key to enhancing the inherent stability of the capital market.
On March 6, at the economic-themed press conference of the second session of the 14th National People’s Congress, Wu Qing, chairman of the China Securities Regulatory Commission, elaborated on the new regulatory concept of “two strong and two strict”, that is, strengthening the foundation and strengthening the foundation, strict supervision and strict management. When talking about how to enhance the inherent stability of the capital market, Wu Qing’s answer is “one cornerstone + five pillars”. One cornerstone is high-quality listed companies; five pillars include a more reasonable capital structure, a better basic system, a more effective market adjustment mechanism, better professional services, and stricter supervision and law enforcement.
In this regard, regulatory authorities have a series of effective practices. It is mainly reflected in paying more attention to the balanced development of investment and financing, continuing to carry out actions to promote the improvement of the quality of listed companies, striving to build a healthier and more transparent market environment where medium and long-term funds are willing to “take root”, and comprehensively promoting basic systems such as issuance, listing, trading, and continuous supervision. Optimize and improve, and at the same time solidly promote the construction of the rule of law in the capital market, increase the punishment of various securities violations and crimes, form many cases with a declarative effect, effectively maintain the “open, fair and just” market order, and protect investors, especially The legitimate rights and interests of small and medium investors. In addition, cross-departmental collaboration will be strengthened to jointly alleviate institutional barriers to medium- and long-term capital entry into the market, relax restrictions on the proportion of stock investments such as insurance funds, encourage the development of equity funds, support bank wealth management funds in improving equity investment capabilities, and actively promote the implementation of long-term investment by various institutions. Conduct periodic assessments to strengthen investment stability.
At present, the favorable conditions for my country’s economic development are stronger than the unfavorable factors, and the economic rebound will be further consolidated and strengthened. However, it is not easy to achieve the expected goals. It is not only necessary to maintain the basic macroeconomic stability, but also to expand new space for “advance” while firmly promoting high-quality development. The fluctuations in the capital market some time ago once again exposed some deep-seated problems, and it is urgent and necessary to enhance the inherent stability of the capital market.
Enhancing the inherent stability of the capital market requires concerted efforts from all parties. Institutional investors such as public funds, bank financial management, and insurance funds are the main sources of medium and long-term funds in the capital market. They are also the key force in the capital market to perform functions such as value discovery, resource allocation, and residents’ wealth management. We must actively expand the breadth of participation in the capital market. and depth, improve investment management capabilities, especially equity investment capabilities, transform “key variables” into “maximum increments”, further strengthen the inherent stability of the capital market, and accelerate the formation of a synergy to promote high-quality development of the capital market.
Specifically, institutional investors should effectively enhance their overall view and macro analysis and judgment capabilities, improve their understanding of the attributes and responsibilities of medium- and long-term funds, strive to expand the scale and proportion of equity investment, strengthen counter-cyclical layout, and practice rational investment and value with practical actions. Investment, long-term investment, is crucial to forming a more reasonable capital structure.
At the same time, it is also indispensable to improve professional management capabilities and compliance and risk control levels. Institutional investors should combine different business layouts, allocation concepts, and performance goals to promote differentiated development and innovation, expand the scale of medium and long-term funds, optimize the investment research management organizational structure and talent training mechanism, actively promote the improvement of active management capabilities, and optimize investment strategy; we must also improve our own governance level, including adhering to full coverage of compliance and risk control, optimizing the long-term assessment incentive and restraint mechanism, establishing and improving a management system that is compatible with long-term assessment, strengthening the standardized management of employees, etc., and further returning to the roots. , work diligently and conscientiously to provide better professional services.
The sun shines and everything changes. In the next stage, measures to stabilize the market and stabilize confidence will be intensified and more effective, the rhythm and pace of reform will be accelerated, and policy synergy will gradually increase. Institutional investors must give full play to their respective advantages, act proactively, and work hard. Be promising and responsible, enhance the inherent stability of the capital market, build a solid foundation for healthy development, and jointly promote the high-quality development of the capital market.
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