Policy, Fundamentals, and Fundamentals Resonance: Strong Support for Capital Markets
2023-12-11
After the Central Political Bureau meeting in July proposed to "activate the capital market and boost investor confidence," regulatory authorities have taken comprehensive measures on the investment, trading, and financing sides to revitalize the capital market. The implementation of these policies improves the basic functions of the market, continuously optimizes the market ecosystem, and continuously introduces incremental funds. In the future, as the Chinese economy continues to stabilize and recover, and policies continue to strengthen, the capital market is expected to resonate with economic recovery. The heavyweight measures for active capital markets have been continuously implemented since July this year, and capital market reform measures have been intensively released. On August 27th, policies for active capital markets were intensively implemented, and the China Securities Regulatory Commission (CSRC) temporarily tightened the pace of IPOs, guiding listed companies to reasonably determine the scale of refinancing, requiring listed companies to invest funds in their main businesses, and strictly limiting diversified investments; The Ministry of Finance and the State Administration of Taxation have announced a halving of stamp duty on securities transactions; The stock exchange has lowered the proportion of financing margin to support moderate financing needs. In September, the State Administration for Financial Regulation issued a notice on optimizing the regulatory standards for the solvency of insurance companies, reducing risk factors and further opening up space for the entry of incremental insurance funds into the market; In the same month, the Shanghai and Shenzhen Stock Exchanges further regulated the reduction of shares. In December, the second phase of fee rate reform in the public fund industry was officially launched. The China Securities Regulatory Commission has studied and formulated the "Regulations on Strengthening the Management of Securities Trading in Publicly Offered Securities Investment Funds" to further optimize the distribution system of trading commissions. According to data from 2022, after the implementation of the Regulations, the total commission for stock trading of public funds will decrease from 18.868 billion yuan to 12.636 billion yuan, a decrease of 33.03%, saving investors 6.232 billion yuan in investment costs annually. The reform of the investment side has become the top priority of the current capital market reform and development. A reporter from Shanghai Securities News learned that the policy framework of China's modern capital market with Chinese characteristics has initially formed a "1+N+X" system, and one of its core measures is to develop a reform action plan for the investment side of the capital market. Next, the China Securities Regulatory Commission will comprehensively promote investment side reform, further expand medium and long-term funding sources, increase the actual proportion of equity asset investment, implement long-term assessment mechanisms, and focus on optimizing the market mechanism environment. The long-term positive economic fundamentals of the Chinese economy, which continue to stabilize and rebound, are the foundation for maintaining the stable operation of the capital market. Since the beginning of this year, measures to stabilize the economy have been continuously introduced, and multiple parties have worked together to boost confidence in the capital market. Looking ahead to next year, the sustained improvement in economic fundamentals also provides strong support for capital market reform. Since the beginning of 2023, the Chinese economy has withstood the risks and challenges from abroad and the downward pressure brought by the interweaving of multiple domestic factors, with GDP growth of 5.2% in the first three quarters. As the policy effects introduced earlier gradually become apparent, domestic demand continues to recover, corporate performance improves, and market confidence gradually recovers. On December 8th, the Political Bureau of the Central Committee of the Communist Party of China held a meeting to analyze and study the economic work in 2024, clearly proposing the overall tone of "adhering to the principle of seeking progress while maintaining stability", emphasizing "consolidating and enhancing the positive trend of economic recovery, and continuously promoting the effective improvement of quality and reasonable growth of quantity in the economy." A series of important deployments have conveyed new trends in economic work in 2024.
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Shanghai Securities Daily
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