On July 24, 2023, China's Politburo set an unprecedented tone for the capital markets. The tone is aimed at activating the capital market, enhancing investor confidence, and injecting new vitality into the country's economy. However, this series of policy adjustments did not bring about **as quickly as the market expected**, on the contrary, **continued from the starting point of the bailout**, which attracted widespread attention and doubts.
The implementation of the policy does not seem to have the desired effect, which makes people wonder why. A series of changes that took place in the market exceeded expectations, with the market value evaporating by 10 in just five months85 trillion, and the per capita loss of shareholders reached 540,000 yuan. Such violent fluctuations occur in the case of a vigorous bailout, which makes people wonder whether policymakers really understand the operation of the market and whether they are predicting the possible reactions and changes of the market.
* Uncertainty and volatility have taken a huge toll on investor confidence. After the policy was introduced, the China Securities Regulatory Commission and a number of departments launched a rescue operation, however, the market did not usher in a collective recovery of investors. On the contrary, investors have been selling**, and there has been a massive ** market phenomenon**. This has triggered a deep reflection on the effectiveness of the policy and the problems of the market itself.
In the process, the structural problems of ** gradually surfaced. More than 4,500 *** and only more than 400 *** market structure makes people question its true value. Fundamental issues may be one of the root causes of this chain of events, and deeper reforms may be needed to address issues such as corporate governance, financial transparency, and investor protection.
This market storm has also posed a severe test to the country's image and credit. Many shareholders have suffered serious losses in the ** and have begun to question the governance and management of the country. At this time, the state needs to take investors' doubts seriously and take active measures to maintain the stability of the market. **The damage to image and credit is not only an economic problem, but also a crisis of social trust, how to gain trust and restore the image in this crisis has become a top priority.
For a long time, China** has brought disappointment to shareholders rather than gains. The downturn in the market has led to doubts about the existence of the market. The rescue action may be able to boost the market for a while, but if the problems of the market itself are not solved, it will be difficult for investors' confidence in the market to be fundamentally restored. Investors may choose to stay away from this seemingly risky market and move their money to other, more stable areas.
At the same time, the sharp rise in tech stocks has also raised concerns for investors about the future. During this period of market downturn, investors are beginning to question whether there is still hope for the future of tech stocks. The tech sector has always been considered the engine of China's economy, but if the outlook for tech stocks is uncertain, then the overall economy could also be dragged down.
In this turmoil, ** and regulators need to be more actively involved, adopt strong policies, and communicate more fully with investors. Explaining the intentions of policy adjustments, measures and expectations for the market, and transparently conveying information is a key part of maintaining market confidence. In addition, it is also a top priority to strengthen market supervision, guard against problems such as manipulation and information asymmetry, and create favorable conditions for the long-term and healthy development of the market.
At this critical juncture, China faces a moment of deep reflection on market mechanisms and governance structures. This is not only a financial crisis, but also a comprehensive test of the country's governance capacity and system. There is a need for more pragmatic policies to address the underlying problems of the market and give investors confidence in the market. Only through profound reform and all-round efforts can China build a healthy, stable and attractive capital market.