Tonight, the Standing Committee of the People s Republic of China made a rare statement, and the Cen

Mondo Finance Updated on 2024-02-01

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According to a CCTV news report, today's National Standing Committee meeting mainly listened to a report on the operation of the capital market and work considerations. The meeting emphasized the need to improve the basic system of the capital market, pay attention to the balance of investment and financing, improve the quality and investment value of listed companies, strengthen the entry of medium and long-term funds into the market, and enhance the internal stability of the market. The meeting also emphasized the need to strengthen capital market supervision, adopt a "zero tolerance" policy for violations of laws and regulations, and create a standardized and transparent market environment. In addition, the meeting emphasized the need to take effective measures to stabilize the market and confidence, maintain the consistency of macroeconomic policies, innovate policy tools, and promote the steady development of the capital market.

After-hours news shows that the National Standing Committee will be held in advance and pay attention to the operation of the capital market, which is quite rare. The focus of the meeting included increasing the entry of medium- and long-term capital into the market and a "zero tolerance" attitude towards illegal activities. This indicates that the top management is already concerned about the sharp decline in A-shares and will take measures to stabilize the market. The exact measures are not yet known, but the news is positive for the market. However, it is uncertain whether there will be a higher opening higher tomorrow, and the A50 index has not reacted.

The Office of the CPC Central Committee and the Office of the State Council issued the "Implementation Plan for the Comprehensive Reform Pilot of Pudong New Area (2023-2027)", which mentions the need to support the high-level reform and opening up of Pudong New Area and promote financial support for scientific and technological innovation. The plan also includes improving the institutional arrangements for the capital market for the listing and financing of technology enterprises, mergers and acquisitions, and studying the launch of options products on the Science and Technology Innovation Board, so as to provide financial services to facilitate cross-border technology transactions.

This plan of the Central Committee and the State Council is very important, giving greater autonomy to Pudong New Area, promoting a greater degree of reform and opening up, and exploring experience for the country's institutional opening-up. For the A** market, this plan mentions the study of the launch of options products on the Science and Technology Innovation Board, which may provide hedging tools for the Science and Technology Innovation Board and improve liquidity.

The National Standing Committee once again emphasized the need to increase the entry of medium and long-term funds into the market, and some people in the industry called for the introduction of leveling ** to stabilize market volatility. Many industry insiders believe that the current A-shares below 2800 points have a high investment cost performance. They believe that now is a good time to launch the leveling **, and the market win rate at this time is definitely higher than 2900 points and 3000 points. Leveling the market can not only protect the market in the short term, but also make the curve more stable in the long run.

Ai StocksJun has called for the introduction of leveling**, but believes that the current market situation is more difficult, and a larger scale of funds is needed to stabilize the market. However, it is not known whether the level will be introduced, and it is only a call from industry insiders. In general, the National Standing Committee once again mentioned the entry of medium and long-term funds into the market, indicating the importance of high-level management to stabilize the market.

The central bank released the second quarter monetary policy implementation report. The report pointed out that it is necessary to resolutely implement the general tone of seeking progress while maintaining stability, maintain a reasonable growth in the scale of broad money M2 and social financing, and maintain reasonable and abundant liquidity. The report also mentioned that it is necessary to adhere to the prudent monetary policy without loosening or tightening, flexibly use various tools, maintain the smoothness of the monetary policy transmission mechanism, and promote the in-depth promotion of the reform of the financial system.

The tone of the central bank's monetary policy implementation report for the second quarter is relatively stable, reiterating the principle of prudent monetary policy not being loose or tight. Maintain reasonable and abundant liquidity, and continue to support the development of the real economy. The report also mentions the flexible use of various tools, which means that the central bank will flexibly adjust its tools and policies according to market conditions to ensure the smooth flow of monetary policy transmission mechanism. Overall, the report sent a signal that the central bank would maintain a stable policy, and the market reaction was muted.

Yi Huiman, chairman of the China Securities Regulatory Commission, said in an interview that the next step will be to promote the opening of the science and technology innovation board and broaden the channels for investors to participate. Yi Huiman also said that the Science and Technology Innovation Board is a trial declaration system, and the follow-up will carry out the reform of the pilot registration system. He said that the next step will be to actively promote the reform of equity division and promote the problem of excessive market value of listed companies.

This is the relevant policy mentioned by the chairman and senior management of the China Securities Regulatory Commission again since they said at the end of last year that they would open up the Science and Technology Innovation Board. The opening of the STAR Market and the pilot registration-based system will provide more innovative technology enterprises with opportunities for listing and financing, which will help promote the healthy development of scientific and technological innovation and capital markets. Yi Huiman's statement is a positive signal for the market, and it is expected that the opening up of the Science and Technology Innovation Board and the reform of the registration system will be gradually promoted this year.

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