Experts praised policymakers for their support of the financial sector

Mondo Finance Updated on 2024-03-01

Experts said that the importance that Chinese policymakers attach to the financial industry can be seen from the capital injection of the first market and the efforts to better balance market innovation and regulation, which is conducive to the long-term stability of the A** market and the high-quality development of listed companies.

He said that it is necessary to build a diversified and professional financial product and service system, and continuously promote the development of market-oriented and law-based financial innovation.

xi The opening ceremony of the study session was attended by provincial and ministerial** on January 16 on the theme of promoting high-quality financial development.

In a report sent to clients on Monday, analysts at UBS, the world's leading banking group, estimated that net capital inflows into the A** market from the start of the year to Friday, for example, by "national teams" such as Central Huijin, a subsidiary of China's sovereign wealth, may have exceeded 410 billion yuan ($57 billion).

UBS analysts write that as long-term investors, the "national team" is "unlikely to be in the near future."

The benchmark Shanghai Composite Index was **1 on Wednesday91%, SZSE Component Index ***24%。

Analysts at Noah Holdings, a Shanghai-based financial services provider, believe that this volatility is justified with the recent emergence of the A** market.

Since the resumption of trading after the Spring Festival holiday on February 19, the Shanghai Composite Index has soared nearly 45%, mainly driven by better-than-expected Chinese New Year consumption data, improved market liquidity and an AI boom.

They said that while volatility may not be avoidable, it can be said that the A** market is gradually bottoming out amid a slight improvement in corporate profitability.

More importantly, the CSRC responded in a timely manner to investor concerns about corporate governance, shareholder returns, and trading reforms.

They added that investors' outlook and risk appetite, which was the main factor that dragged down the index in previous months, have improved significantly.

One example given by analysts at Noah Holdings is tighter controls on quantitative trading. Quantitative trading is a relatively new trading method that uses mathematical models and programs to replace humans to analyze*** and make investment decisions.

In a Feb. 20 announcement, the Shanghai and Shenzhen stock exchanges said they would strengthen the monitoring and analysis of quantitative trading, especially high-frequency trading, in terms of mechanisms, market access, trading activities, information and institutions.

The China Securities Regulatory Commission (CSRC) on Tuesday convened a seminar on improving capital market mechanisms and consolidating the rule of law.

Wu Qing, chairman of the China Securities Regulatory Commission, said at the symposium that the rule of law should lay a solid foundation, stabilize expectations, and play a greater role in the high-quality development of the capital market.

According to the "China ** Daily" on February 22, the China Securities Regulatory Commission said that it will gradually introduce new quantitative trading regulatory policies at an appropriate time.

Yang Delong, chief economist of First Binhai**, said that efforts to optimize the trading mechanism and strengthen supervision will help improve the transparency, credibility and activity of the A** market.

He suggested that regulators should also strengthen supervision of intermediaries such as sponsors and accounting firms to ensure that they perform their duties.

Related Pages