China News Agency, Beijing, May 10. China's A-share market has experienced increased volatility this year.
Wang Jianjun, vice chairman of the China Securities Regulatory Commission, said in an interview with the media that the stable operation of the market has a solid foundation.
The China Securities Regulatory Commission disclosed relevant information on the 10th.
Wang Jianjun said that since the beginning of this year, the A-share market has experienced relatively large fluctuations, and market confidence has been frustrated, mainly due to the conflict between Russia and Ukraine, the Fed’s interest rate hike, the recent repeated epidemics and the increasing downward pressure on the economy. Internal and external factors are intertwined and resonated, and the market still exists. A certain overreaction.
Wang Jianjun believes that, in general, the impact of various risk factors on the A-share market is objective, but the impact is controllable, and the stable operation of the market has a solid foundation.
Wang Jianjun analyzed that, from a fundamental point of view, China's economy continued to recover this year, logistics and industrial chain supply chains are recovering in an orderly and forceful manner recently, and the fundamentals of China's long-term economic growth have not changed.
From a policy perspective, the effect of "steady growth" is accelerating, and positive signals in real estate, platform economy, regulation and guiding the healthy development of capital are conducive to stabilizing expectations in all aspects.
From the perspective of the capital market itself, the progress of resumption of work and production of listed companies has accelerated, and their performance has grown steadily.
The valuation of the A-share market is generally lower than that of the overseas market, and the dividend yield of the CSI 300 is 2.8%, which is comparable to the yield of the 10-year Treasury bond.
More importantly, in recent years, China's capital market has been continuously deepening its comprehensive reform, the market ecology is improving, and the market vitality is increasing. It has withstood various internal and external shocks that exceed expectations, showing strong resilience.
Wang Jianjun emphasized that at present, the scale of leveraged funds in the market is limited and the risks are controllable. The public funds are generally subscribed on a net basis, and there is no centralized redemption.
Short-term market volatility will not change the long-term positive trend of China's capital market.
Regarding the next steps to maintain the stable operation of the capital market, Wang Jianjun revealed that the first is to insist on promoting development and stability through reform.
Steadily promote the reform of the registration system for stock issuance, strictly control market access, and support eligible platform companies to list domestically or overseas.
The second is to give full play to the role of the internal stability mechanism of the market.
Together with relevant departments, we will encourage listed companies to repurchase, increase their holdings by major shareholders, increase dividends, and support listed companies in resuming work and production.
Encourage public funds and securities companies to subscribe for their asset management products with their own funds.
The third is to actively introduce medium and long-term funds.
Promote social security, insurance, bank wealth management and other institutions to increase the proportion of equity investment, and accelerate the implementation of the relevant system for personal pension investment in public funds.
The fourth is to maintain the stable operation of the futures market.
Work closely with relevant ministries and commissions to strengthen the joint supervision of futures and spot goods, enrich and improve futures varieties, give full play to the role of price discovery and risk management in the futures market, and serve the work of ensuring supply and stabilizing prices.
Fifth, strengthen communication and collaboration across ministries and commissions.
Regarding policies that may have a significant impact on the capital market, strengthen communication and coordination across ministries and commissions, cooperate in a good demonstration and evaluation, and strive for policy coordination.
The sixth is to improve the bottom line plan.
Formulate work plans to prevent and resolve risks in key areas of the capital market, and maintain the bottom line of no systemic risks.
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