In the shadow of the 2008 global financial crisis, China** took a massive fiscal stimulus to stabilize the economy with a 4 trillion yuan investment plan, a move that was called a "flood" bailout. Today, it seems that we have not witnessed a similar bailout. This does not mean a laissez-faire approach to the market, but a deliberate shift in strategy.
Although the 2008 bailout measures boosted market confidence in the short term, they did not fundamentally solve the long-term problems of the market. On the contrary, it can lead to the misallocation of resources and the accumulation of debt, laying the groundwork for future economic development. Therefore, simply copying the model of the past will not only fail to achieve the desired effect, but may exacerbate existing problems.
The current international environment has changed significantly from 2008. The long-standing high valuation and risk accumulation in the United States** have attracted the attention of global investors. If China takes large-scale bailout measures at this time, it is likely that a considerable part of the capital will flow to the United States**, thereby supporting the capital market of the United States, rather than China's own A** market.
The current bailout strategy focuses more on "curing the root cause". Through gradual market reforms, strengthened regulation, increased transparency, and optimized market structure, China** is striving to achieve long-term stability and healthy development of the market. Although this method of "simmering slowly" from the surface to the inside will not immediately bring a large increase in the market, it can lay a solid foundation for the sustainable development of the market.
The current non-bailout is actually a new bailout philosophy. Today, the global economic landscape is constantly changing, and China** has chosen a more prudent and long-term market governance strategy. In this way, we will not only be able to avoid short-term market fluctuations, but also lay a solid foundation for the long-term prosperity and stability of China's economy. In the future, we have reason to believe that this kind of market governance will bring more stable and sustainable development to China's capital market.