[four major newspapers comment on the stock market: the A-share market does not have the basis for a sustained slump] affected by multiple factors, the A-share market fell sharply, falling more than 4% in intraday trading on the 19th, closing at 2907.82, down 3.78%, the lowest since June 2016. the Shenzhen Composite Index reported 9414.76, down 5.31%; and the gem index reported 1547.15, down 5.76%, the lowest since January 2015.

Affected by many factors, the A-share market fell sharply, falling more than 4% in intraday trading on the 19th, closing at 2907.82, down 3.78%, the lowest since June 2016; the Shenzhen Index reported 9414.76, down 5.31%; and the gem Index reported 1547.15, down 5.76%, the lowest since January 2015. The four major domestic securities newspapers issued relevant comments.

China Securities News: a-shares do not have the basis for a sustained plunge

Recently, the A-share index showed a volatile decline. In an interview with a reporter from the China Securities News, a number of experts said that China's economic development will be better than the market expected in terms of resilience and quality. Financial regulation is more coordinated, the policy toolbox is adequate, and it is fully capable of defusing market risks.

China's economy is full of resilience

According to the National Bureau of Statistics, in terms of production, industry grew steadily. From January to May, the added value of industries above the national scale increased by 6.9% compared with the same period last year, the same growth rate as from January to April. In terms of consumption, since the beginning of this year, the total volume of retail sales of consumer goods has increased by 9.5% from January to May, continuing a relatively rapid growth trend as a whole.

From the perspective of investment, although the overall investment growth rate has slowed down, the investment structure is being optimized. The growth rate of investment in the manufacturing industry accelerated, and private investment continued to grow rapidly. Manufacturing PMI has remained within the boom range for a long time, especially in May, when the manufacturing PMI was 51.9%, up 0.5% from the previous month.

In terms of employment, the unemployment rate in the national urban survey in May was 4.8 percent, down 0.1 percentage points from the previous month and from the same period last year. In terms of prices, CPI rose 1.8% in May from a year earlier, maintaining a moderate upward trend. PPI rose 4.1% in May, an increase of 0.7% over the previous month, but remained at a reasonable level as a whole. Therefore, prices are stable and employment is improving. Mao Shengyong, spokesman for the National Bureau of Statistics, said.

Judging from the basic economic situation, Liu Feng, chief economist and director of the Research Institute of China Galaxy Securities, said that at present, China's industrial production is still stable, there is room for further boost in domestic demand, moderate inflation pressure is limited, and consumption is generally stable. By focusing on expanding domestic demand, we can effectively hedge against changes in external demand. In the second half of the year, from the point of view of stabilizing domestic demand and preventing systemic risks, monetary investment on a sound and neutral basis is expected to be marginal loose, creating a suitable monetary and financial environment for stable growth, risk prevention and deleveraging.

China's economic growth will be better than market expectations in terms of resilience and quality. Xing Ziqiang, chief China economist of Morgan Stanley, said a few days ago that for example, rising consumption and private investment continued to rebound, further offsetting the impact of the slowdown in state-owned enterprises and infrastructure investment on China's economy. China's consumption growth will continue to be strong at present. In particular, the current hot job market in China will accelerate the rise in wages from the second half of this year to next year, thus providing support for consumption to continue to rise.

Yan Yan, chairman of China Integrity International and deputy director of the Institute of Economics of Renmin University of China, judged that China's economy has entered a new stage and the resilience of economic growth still exists. From a short-term perspective, China's economic growth has been maintained at 6.8% in the past three quarters, and the trend of short-term stabilization is obvious. "if we take a longer view, China's economy has begun to pick up in the past seven years. Therefore, based on the short-term and medium-term judgment, we believe that China's economy has stabilized and rebounded. "

"Economic fundamentals do not support the continuous collapse of the Chinese stock market. Tian Lihui, director of the Institute of Financial Development of Nankai University, said that the economic figures in May were good, the national economy maintained a steady momentum of progress, and the resilience of economic growth continued to increase. The stable macroeconomic situation is a solid foundation for the sound operation of the capital market.

The valuation is low and the liquidity is easy.

Analysts believe that A-share valuations are historically low and undervaluation brings a high margin of safety. The opportunity of the current position outweighs the risk, and after repeated bottoming out, the market will still return to the fundamental dominant track.

"on the whole, the A-share market is still in a state of healthy development. From a profit point of view, the vitality of the real economy has been repaired to a certain extent after the supply-side reform in 2017. Judging from the quarterly report, after excluding financial stocks, the average profit growth rate of listed companies reached 23.53%, which is in a relatively healthy state. Chen Li, director of Chuancai Securities Research Institute, said that judging from the valuation situation, the current valuation levels of all A-shares, Shanghai Stock Exchange 50, gem and other major indexes are roughly equal to or even lower than the level at the beginning of 2016, indicating that driven by earnings repair, the current stock price has better digested the valuation, and the absolute level of valuation is not high.

In terms of liquidity, Chen Li believes that in the case of deleveraging, the level of liquidity in the financial market this year is still more stable than that of last year, indicating that the monetary policy adjustment mechanism is becoming increasingly flexible. The recent succession of MLF by the central bank shows that the overall intention of the central bank to maintain stable liquidity in the money market has not changed. The valuation of the Chinese stock market is not high and the systemic risk can be controlled. Tian Lihui said that China's Shanghai 50 price-to-earnings ratio is only 12 times earnings and price-to-book ratio is only 1.6 times; the S & P 500 price-to-earnings ratio is 22 times, price-to-book ratio is 3.3 times; and the Dow Jones Composite average price-to-earnings ratio is 20 times, price-to-book ratio is 3.3 times.

The central bank once again sent a positive signal to stabilize market expectations. A relevant responsible person of the central bank said recently that looking to the future, the central bank will implement a sound and neutral monetary policy, strengthen the situation prediction and pre-adjustment and fine-tuning, strengthen the coordination of regulatory policies, and grasp the strength and rhythm of the policy. we will improve the two-pillar regulation and control framework of monetary policy and macro-prudential policy, actively and effectively respond to possible external shocks, stabilize market expectations, maintain the smooth operation of the financial market, and promote financial reform and opening up in an orderly manner. We will promote the steady and healthy development of economy and finance.

Looking forward to the trend of the A-share market in the second half of the year, many securities firms believe that risk prevention and new economic transformation are still the core thread. The most pessimistic time in the A-share market in 2018 is over, and we are actively bullish on the second half of the year. From a policy point of view, expanding domestic demand, opening up finance and encouraging the new economy are expected to provide a better policy environment. From the perspective of liquidity, under the tone of sound and neutral monetary policy, A shares are still stock funds game market in the second half of the year. From the perspective of the global stock market, A shares have strong profitability, reasonable valuation and risk premium, and can be relatively optimistic in the second half of the year.

Policy dividends are expected to continue to be released

From the Asian financial crisis to the subprime mortgage crisis in the United States, the market is worried about the "every eight crisis". In fact, the global economy is in the spring of recovery in 2018, and global policy is accelerating the shift from demand-side stimulus to supply-side reform.

Industry insiders believe that, as a forerunner, China's supply-side reform has begun to bear fruit. In the short term, China's stable growth policy reserves are sufficient, and there is more room for continuous release of policy dividends in the future. In the medium to long term, reforms in various fields will be accelerated and become the cornerstone of China's new economic resilience.

"the second half of 2018 will be a new starting point for 40 years of China's reform and opening up, and more practical reform and opening-up measures that exceed expectations are expected to be launched one after another. Cheng Shi, chief economist of ICBC International, believes that first, supply-side reform has ushered in a new relay. In the second half of the year, the focus of China's supply-side reform policy will shift to the marketization of factor prices, and the dividend of precision and long-term reform will accelerate, driving China's stable economic growth. Second, structural inflation has reached a small peak. As the supply-side reform shifts from the first stage to the second stage, structural inflation will fluctuate and strengthen in the second half of the year, forming a small peak, after which it will gradually return to a moderate trend in 2019. Third, China's economy has re-established the trend of reform. More practical reform and opening up measures that exceed expectations are expected to be launched one after another. Fourth, China's economy fosters structural investment opportunities. Thanks to the new relay of reform and the small peak of inflation, investment themes such as the new economy, consumption upgrading, "Belt and Road Initiative" and the reform of state-owned enterprises deserve continued attention in the second half of the year.

Qin Peijing, chief strategist at CITIC, said it is expected that policies will be introduced in the future to clarify the "policy bottom". First of all, the orientation of broadening public finances and expanding domestic demand will become more and more clear. For example, the draft amendment to the personal income tax Law has been submitted to the standing Committee of the 13th National people's Congress for deliberation. Second, deleveraging requires relatively loose monetary conditions. It can be seen from the fact that the central bank did not follow the Fed to raise interest rates and raise MLF interest rates again recently. In the process of the landing of the new regulations on asset management, because of the reserve requirements, shadow banks will have a broad sense of credit leakage in the return statement, and the possibility of continuous reserve reduction to release loanable funds is not low. With the gradual landing of the policy, after clarifying the "policy bottom", the risk preference of A-share market will be effectively supported.

Tian Lihui stressed that in an effective and controllable monetary environment, capital markets do not have the basis for a sustained collapse. At present, the central bank implements a prudent and neutral monetary policy, moderately adjusts the monetary floodgates, effectively guides market expectations, the monetary liquidity is reasonable, and the flexibility of macro-control is increasing, so that it can grasp the strength and rhythm of deleveraging, and gradually create a suitable monetary and financial environment for supply-side structural reform.

Tian Lihui stressed that through a variety of measures to strengthen financial supervision, China has basically formed a coordinated financial supervision system, and there will not be a situation of "Kowloon water control, no one is responsible" again. In China's current financial system, financial regulatory authorities have a variety of means to regulate the stock market, and the policy toolbox is sufficient, which is fully capable of dealing with market risks.

Securities Daily: China's economic fundamentals do not support a sharp fall in the stock market

On June 19, the domestic stock market fell sharply, but from the perspective of China's economic fundamentals, especially the huge potential of the domestic market and the driving force of industrial upgrading, it is a major trend for the economy to maintain steady growth, the stable operation of the capital market and the increasing attractiveness of the capital market, which will not be reversed by the current trade factors.

From the perspective of the trend of China's economic development, especially the trend of endogenous power and domestic demand market, it is guaranteed to maintain the momentum of sustainable and high-quality economic development. Over the past 11 quarters, China's economic growth has been stable between 6.7% and 6.9%, showing strong resilience and stability. According to the latest data from the National Development and Reform Commission, the electricity consumption of the whole society increased by 11.4% in May from a year earlier, an increase of 6.4 percentage points over the same period last year. In the first five months of this year, the number of railway goods delivered by the country increased by 6.9% compared with the same period last year, according to the China Railway Corporation. Data from the people's Bank of China show that medium-and long-term loans to non-financial enterprises and institutions increased by 403.1 billion yuan in May, indicating that financial support for the real economy is relatively solid.

The latest quarterly report of listed companies shows that among the more than 3500 listed companies in Shanghai and Shenzhen stock markets, more than 60% of the companies' performance increased in the first quarter compared with the same period last year, while more than 30% of the companies' performance decreased compared with the same period last year. Net profit growth rates in industries such as diversified telecommunications services, life science tools and services, building materials, household non-durable consumer goods, semiconductor products and equipment all exceed 100%. As an important platform for supporting high-quality economic development, the capital market will continue to play an important supporting role.

The 3000-point front line of the Shanghai Composite Index does face some real pressure that needs to be resolved. But objectively speaking, the first line of 3000 points is already a relatively low index range, and investment opportunities have increased. This is evidenced by the continued inflow of foreign capital of 122 billion yuan in the past two months. Of course, whether foreign investors are here to buy the bottom or not, the price-to-earnings ratio of the A-share market has shown an advantage. The Shanghai Composite Index and the CSI 300 Index are all trading at 13 times earnings, on a par with the FTSE 100 index in the UK and the DAX index in Germany. In the United States, the Dow Jones Index and the Standard 500 Index are all trading at 25 times earnings. This shows that the comparison of Shanghai and Shenzhen stock markets in the global market also has investment value.

From the perspective of internal governance of the stock market, there are two main problems in the near future: one is the pressure on the listing of high-quality large-cap stocks, and the other is the relative lack of liquidity. In order to deal with the current situation, it is necessary to stabilize the hearts and minds of the people and take necessary measures in these two aspects. On June 19th, XIAOMI asked for a moratorium on the issuance of CDR and obtained regulatory approval. This is a positive response.

To ensure adequate liquidity in the domestic market, while preventing liquidity from being "wasted", that is to say, liquidity should be put to proper use through strict supervision and proper dredging. The capital market is an important place to promote the leverage reduction of entity enterprises. For high-quality stocks, it is necessary to ensure their liquidity requirements. Great attention should be paid to the centralized liquidation of some pledged stocks. Equity pledge financing is an important means of modern market financing. Whether the risk of equity financing pledge is big or small, and how to deal with it more appropriately, should be evaluated comprehensively by enterprises, professional service agencies, regulatory departments and society, and one-size-fits-all should be avoided. For the companies with too high proportion of equity pledge and the risk of default, it is also necessary to smooth the way and rhythm of disposal. The competent financial departments should make proper arrangements for liquidity and make necessary policy adjustments according to this reality.

In an interview with the Financial Times on the afternoon of June 18, the relevant responsible person of the people's Bank of China issued a statement on liquidity-related issues, pointing out that he would pay close attention to the international and domestic economic and financial trends and implement a sound and neutral monetary policy. we will strengthen the prediction and pre-adjustment of the situation, strengthen the coordination of regulatory policies, grasp the intensity and rhythm of policies, and increase support for the real economy, such as small and micro enterprises. We will improve the two-pillar regulatory framework of monetary policy and macro-prudential policies, actively and effectively respond to possible external shocks, stabilize market expectations, maintain the smooth operation of the financial market, promote financial reform and opening up in an orderly manner, and promote the stable and healthy development of the economy and finance. This statement of the people's Bank of China is very important, and all large financial institutions should actively implement the spirit of the people's Bank of China, implement policies and measures to support the real economy, and transmit the effects of economic and financial stability in place.

While macroeconomic policies are stable and flexible, we should further consolidate the real economic foundation, persist in deepening supply-side structural reform, and firmly promote greater reform and opening up. We should make full use of the market potential of the country with nearly 1.4 billion people, promote the upgrading of domestic demand and better link up with the global market, and contribute China's strength and wisdom to the construction of an open world economy. At the same time, it is necessary to speed up the reform and opening up of the capital market, especially to expand the scale of long-term funds entering the market and strengthen the strength of institutional investors. It is necessary to further improve supervision, improve the quality of listed companies, unswervingly promote the shift of strategic focus in the capital market, and provide greater support for innovation-driven and high-quality economic development!

Shanghai Securities News: the favorable factors for the operation of the stock market have not changed

Affected by multiple factors, the A-share market fell sharply yesterday in the form of "emotional catharsis". The daily decline of the Shanghai Composite Index reached 3.78%, more than 1,000 stocks in the two cities fell by the daily limit, and the daily trading volume of the market reached a new high in nearly three months. Yesterday's market volatility, with a more obvious panic-style characteristics. The impact of external markets and concerns caused by some uncertainties are important reasons for the massive sell-off by investors.

The stock market is not only the expected market, but also the confidence market. Although the Shanghai and Shenzhen stock indexes fell sharply yesterday, rational analysis shows that the three favorable factors that support the basis of market operation, including the continued development trend of macroeconomic stability, liquidity will remain reasonable and stable, and the basic system of market operation has not changed.

At the same time, with the continuous deepening of the construction of various basic systems in recent years, the work of financial deleveraging and financial risk prevention has been increasingly effective, and the ability of our market to respond to and resist external disturbances has also been enhanced. The sharp drop in volume reflects the pessimistic mood of the market in the short term, but after the emotional catharsis, investors should also treat the ups and downs of the market rationally and objectively recognize the short-term and long-term factors that affect the operation of the market.

The favorable factors for economic stability remain the same.

Macro economy is the basis of the trend of the stock market. At present, China's economy is generally stable, the trend of steady development continues, and the performance of listed companies, as an economic "barometer", continues to improve, and the favorable economic fundamentals that determine the medium-and long-term operation of the stock market have not changed.

Statistics show that in 2017, the operating income of listed companies on the Shanghai and Shenzhen stock markets increased by 18.80% over the same period last year, an increase of 10.12% over the previous year, and net profit increased by 19.10% over the same period last year, an increase of 11.65% over the previous year. At the same time, the new economy and new momentum continued to accumulate, and the net profits of listed companies in strategic emerging industries increased by 21.80% in 2017 compared with the same period last year.

The basic situation of economic operation in recent years shows that the stability of China's macro-economy is increasing day by day. The latest economic performance indicators for May further support this point. The added value of large-scale industries increased by 6.8% in May, 0.3 percentage points higher than the same month last year, and the service industry production index rose 8.1% year-on-year, 0.1 percentage points higher than the previous month.

At the same time, consumption plays a more and more fundamental role in promoting economic growth. In recent years, the contribution of consumption to economic growth has been stable at about 60%. Although the overall growth rate of investment has declined, the investment structure has been continuously optimized and investment in the real economy has shown signs of stabilizing. The economy's dependence on trade fell from 64% in 2006 to 33% last year, below the world average of 42%. The growth rate of China's consumption has been running smoothly this year, and the National Bureau of Statistics, the Ministry of Commerce and other ministries have repeatedly stated that domestic consumption will maintain steady growth in the second half of the year.

For the whole of last year, China's GDP growth rate of 6.9% was not only much higher than that of developed economies such as Europe, the United States and Japan, but also surpassed that of other BRICS countries, becoming the "locomotive" of global development. Mao Shengyong, spokesman for the National Bureau of Statistics, said recently that China's economy has the conditions to maintain a relatively good growth trend in the second half of the year and is full of confidence in achieving economic growth of about 6.5% for the whole year. Industry experts also generally believe that China's economy has great potential and resilience, and will maintain a good medium-and long-term trend of steady and healthy growth.

The favorable factors for maintaining a reasonable level of liquidity remain unchanged.

The liquidity of the financial market is one of the important factors affecting the trading activity of the stock market. The people's Bank of China implements a prudent and neutral monetary policy, timely adjusts and improves macro-prudential policies, and strengthens pre-adjustment, fine-tuning and expectation management. Financial market liquidity has been maintained at a reasonable level, and this favorable factor will continue in the future.

Since the beginning of this year, the people's Bank of China has improved its flexibility in currency operation compared with last year, showing a protective attitude towards capital. On the one hand, through the application of reverse repurchase, medium-term lending facilities, standing lending facilities and other tools, the central bank provides liquidity to the market for different periods. On the other hand, the deposit reserve ratio of some financial institutions has been lowered to replace MLF, increasing the stability of funds in the banking system, and implementing targeted reserve cuts in inclusive finance, releasing more than 400 billion yuan.

Generally speaking, the steady and neutral monetary policy has achieved good results, the liquidity of the banking system is reasonable and stable, the scale of monetary credit and social financing has increased moderately, the market interest rate has been basically stable, and the cost of comprehensive social financing has steadily declined. financial support to the real economy is relatively stable, playing an important role in serving the real economy and preventing and controlling financial risks.

Yesterday, the main person in charge of the people's Bank of China said in an interview with the Shanghai Securities News that it would make forward-looking policy reserves and make comprehensive use of various monetary policy tools to maintain reasonable and stable liquidity. At the same time, we should grasp the strength and rhythm of structural deleveraging and keep the bottom line that systemic financial risks do not occur.

In a recent interview with the media, the relevant responsible person of the people's Bank of China also said that he would pay close attention to the international and domestic economic and financial trends, implement a sound and neutral monetary policy, strengthen the situation prediction and pre-adjustment and fine-tuning, and strengthen the coordination of regulatory policies. we should grasp the strength and rhythm of policies, increase support for real economies such as small and micro enterprises, and improve the dual-pillar regulation and control framework of monetary policy and macro-prudential policies. Actively and effectively respond to possible external shocks, stabilize market expectations, and maintain the smooth operation of the financial market.

The favorable factors for the continuous consolidation of the market foundation system remain unchanged.

In recent years, the improvement of a series of basic systems in the financial and capital markets and the gradual landing of a series of reform and opening up measures are making the internal foundation of market operation more solid.

Since last year, the A-share market has maintained the normalization of the issuance of new shares, strictly checked the examination and control, prevented "illness from entering the mouth", and at the same time increased support for enterprises in the new economy; adopted various measures to standardize refinancing and mergers and acquisitions, speed up the construction of delisting system, crack down on market chaos; introduce new rules to reduce holdings, standardize the behavior of major shareholders, and urge listed companies to increase their dividends. Speed up the construction of a multi-level capital market system and improve the systems and mechanisms of the new third board market. The basic system of the market has been further improved, and the participants in the market have become increasingly mature, which has undoubtedly further consolidated the foundation of the long-term and stable operation of the market.

On this basis, the process of reform and opening up of China's capital market is accelerating day by day, and the market has entered the fast lane of high-level two-way opening. At present, the Shanghai-Shenzhen-Hong Kong Stock Connect is running smoothly, the QFII and RQFII systems are becoming more perfect, and the floodgates of foreign-controlled joint venture securities companies, funds, and futures companies have gradually opened. Since June, A-shares have been included in the MSCI index, and A-shares have been gradually included in the "shopping cart" of world investors.

By taking the initiative to expand the opening of the capital market to the outside world, introducing overseas competitors, supporting domestic institutions to go out, optimizing the multi-level capital market system and structure, and introducing and cultivating diversified market entities, the anti-risk ability of the capital market is constantly improving.

Dong Dengxin, director of the Institute of Finance and Securities of Wuhan University of Science and Technology, believes that the strong supervision of the financial market and the stock market in the early stage has played a good role in optimizing the market ecology, which is not only conducive to reducing the level of market risks. it also provides help for the long-term stability and improvement of the market, the gradual decline in the leverage level of the financial market, and the corresponding improvement of the financial market's ability to resist risks, which is very good for preventing external shocks.

Experts and market institutions generally believe that the current stock market profit level and valuation have been relatively matched, A shares have gradually entered the value investment range. In fact, the A-share market has been favored by overseas funds recently. Before the 19th, the Shanghai-Shenzhen-Hong Kong Stock Connect had maintained a net inflow of northward capital for 18 consecutive trading days. Among them, the daily net inflow of funds going northward through the Shanghai and Shenzhen Stock Connect reached 6.032 billion yuan on June 4, setting a new record for one-day net inflows since May. As of yesterday's close, northbound funds in June a total net inflow of 30.4 billion yuan.

Haitong analysis, A-share weakness is not due to fundamental factors, all A-share PE is 16.1 times, PB is 1.7 times, have been slightly lower than the Shanghai Composite Index 2638 level. Haitong believes that the A-share market is still at the bottom of the medium-term market, but investors do not need to panic in the short term, the stock market's own profits and valuation have been matched.

Bank of China International Securities also believes that the overall valuation of A shares has been reasonable, the valuation of the main broad-based index of the market is at the historical average level, and the market valuation is also much lower than the expected growth rate of performance, and valuation is no longer the main contradiction in the operation of the market.

Securities Times: you might as well be more calm in the face of market fluctuations

Affected by many factors, the A-share market fell sharply, falling more than 4% in intraday trading on the 19th, closing at 2907.82, down 3.78%, the lowest since June 2016; the Shenzhen Index reported 9414.76, down 5.31%; and the gem Index reported 1547.15, down 5.76%, the lowest since January 2015.

It is natural for the market to rise and fall, A-share volatility has its own law of operation, but yesterday's market trend was obviously divorced from the fundamentals, worry is to blame. On the one hand, the unstable state of the surrounding stock market, so that A shares can not be left alone. The linkage between the domestic capital market and the overseas market is getting closer and closer, and the impact of the peripheral market on A-shares is becoming more and more obvious, and the general decline in the global market has also involved A-shares. Under this background, the market's worry about trade friction has been amplified; on the other hand, listed companies have frequently exploded equity pledge news, which has deepened the market's anxiety. The superposition of multiple factors led to the concentrated release of irrational concerns, causing the market to plummet.

In fact, these concerns are more likely to "scare yourself". The United States claims that it will draw up a tax list of $200 billion after the $50 billion tax list, which is more of an extreme pressure and threat. The United States has not drawn up a specific tax list, nor has it stated a clear tax schedule. 200 billion is more of shouting blackmail. As for equity pledge, the proportion of listed companies being closed is very small, and most of the affected companies ease the pressure by delaying pledge and relieving pledge.

Worry is magnified, it is easy to make irrational selling behavior, investors should remain calm and rational.

First of all, China's economic fundamentals are sound, the resilience of economic growth is enhanced, the total supply and demand is more balanced, and the growth momentum is accelerated. Since the beginning of this year, RMB is one of the few currencies that have appreciated against the US dollar. It is the most dynamic and promising economy in the world. The pull of domestic demand on China's economy is rising, the degree of dependence on trade is lower than the world average, and China's economy is increasingly able to cope with external shocks. Yi Gang, governor of the central bank, said that China is a large market with a population of more than 1.3 billion, has great endogenous economic potential, and has sufficient conditions and space to deal with all kinds of trade frictions.

Second, the capital surface is relatively abundant, the central bank has frequently released liquidity in recent days, liquidity will remain reasonable and stable under the precise management, a number of forward-looking measures have made sufficient policy reserves, and various monetary policy tools have also laid the foundation for the stability of liquidity.

Third, at the market level, when some investors struggled with worry, some prescient funds began to be actively arranged, especially in the context of the opening of Shanghai and Shenzhen-Hong Kong links and the inclusion of A-shares into MSCI, foreign enthusiasm for the Chinese market continued to rise, with the net inflow of "Land Stock Connect" reaching 50.851 billion yuan in May alone.

In addition, the latest first-quarter reports of listed companies show that of the more than 3500 listed companies in Shanghai and Shenzhen stock markets, more than 60% of them increased in the first quarter compared with the same period last year, while more than 30% of them declined compared with the same period last year. The capital market continues to play an important supporting role as an important platform for supporting high-quality economic development. Only when investors clearly see the various factors affecting the medium-and long-term development of the market, will they not be magnified by the short-term adverse effects. At present, there is a certain deviation between the stable situation of China's economy and the pessimistic expectations of depressed investor confidence. Once expectations are adjusted, it will give China's capital market an upward opportunity.