Liu Shiyu, chairman of the Securities Regulatory Commission, went to the business department on Sunday to hold an investor forum to listen to investors' opinions and suggestions on the reform, development and stability of the capital market. Holding a face-to-face forum between the chairman and investors at a time of market downturn shows not only the importance that regulators attach to the market and investors, but also the intention to stabilize the market and boost confidence at a critical moment.

At the forum, Liu Shiyu's remarks mainly included:

1. The CSRC has always attached great importance to the voices from the front line of the market, and the opinions and suggestions put forward by investors today are of great value for enriching and perfecting the reform and opening-up package of the capital market.

2. The CSRC will always be guided by General Secretary Xi's thought of socialism with Chinese characteristics in the new era, thoroughly understand the spirit of the 19th CPC National Congress, and resolutely implement the decision-making arrangements of the CPC Central Committee and the State Council. we will unswervingly adhere to the direction of marketization, the rule of law and internationalization, and continue to promote the deepening reform and all-round opening up of the capital market.

3. truly implement the "six stability" requirements of the CPC Central Committee on economic and financial work, and organically combine various measures of capital market reform and opening up, comprehensive and strict supervision measures in accordance with the law with stabilizing and boosting confidence.

4. Firmly adhere to the "two unwavering", strengthen innovation in many aspects such as systems and tools, and effectively support the development of private enterprises.

5. There are hundreds of millions of small and medium-sized investors in China's stock market, which is with Chinese characteristics. The CSRC will always shoulder the mission of protecting the legitimate rights and interests of investors, especially medium and small investors, and strive to create an open, fair, fair, clear and transparent capital market ecology.

A forum for investors held in the sales department

Today, Liu Shiyu went to the business department of Beijing Dongzhimen South Street of CSC FINANCIAL CO.,LTD Company to conduct a survey and held a forum for investors to listen to investors' opinions and suggestions on the reform, development and stability of the capital market.

A total of 15 representatives of private equity funds and individual investors attended the meeting. Investors have analyzed the basic reasons for the downward range and pressure of the A-share market since the beginning of this year from many angles, and believe that the most important thing at present is to deepen reform and expand opening up to the outside world as the main line to boost market confidence. It is suggested that we should enhance the strategic position of the stock market, deepen the reform of state-owned enterprises, develop mixed ownership, improve the quality of listed companies, improve the basic system, including the trading system, reduce taxes and profits to support the development of private equity funds, and guide long-term investment behavior. cultivate institutional investors, promote long-term funds to enter the market, macro management and regulatory departments and market investors should strengthen counter-cyclical awareness and promote the stable and healthy development of the capital market.

Liu Shiyu said that the CSRC has always attached great importance to the voices from the front line of the market, and the opinions and suggestions put forward by everyone today are of great value for enriching and perfecting the package of deepening reform and opening up of the capital market.

The CSRC will always be guided by General Secretary Xi's thinking on socialism with Chinese characteristics in the new era, thoroughly understand the spirit of the 19th CPC National Congress, resolutely implement the decision-making arrangements of the CPC Central Committee and the State Council, and unswervingly adhere to the direction of marketization, the rule of law, and internationalization. we will continue to promote the deepening reform and all-round opening up of the capital market and launch one. We will truly implement the "six stability" requirements of the party Central Committee on economic and financial work, and organically combine various measures for the reform and opening up of the capital market and comprehensive and strict supervision measures in accordance with the law with stabilizing and boosting confidence. Firmly adhere to the "two unwavering", strengthen innovation in many aspects, such as systems and tools, and effectively support the development of private enterprises. There are hundreds of millions of small and medium-sized investors in China's stock market, which is with Chinese characteristics. The CSRC will always shoulder the mission of protecting the legitimate rights and interests of investors, especially medium and small investors, and strive to create an open, fair, fair, clear and transparent capital market ecology.

The market is in the doldrums and the intention to maintain stability is obvious.

Since the beginning of this year, the A-share market has entered a downward channel. The Shanghai Composite Index has fallen to 2606 points from 3314 points at the beginning of the year, a decline of more than 21.3%. Especially in the recent week, after the National Day holiday, the Shanghai stock market fell from 2768 points to 2606 years. In just 4 days, it fell by more than 160 points, affecting investor sentiment.

Under this market background, Liu Shiyu held a forum of shareholders, starting from what individual investors wanted, getting close to the market, and asking investors, it can be seen that he has understood investors' worries about the frequent decline of the market, which reflects the intention of maintaining stability and protecting the market.

"Stability" is the basis and premise of deepening the reform and opening up of the capital market. Giving full play to the advantages of the capital market to promote the combination of industry and finance is inseparable from the "stable" market environment. Since last year, a number of chairmen of the CSRC have publicly stated their position and have always adhered to the general tone of the work of striving for progress in the midst of stability, under the unified command and coordination of the Financial Committee of the State Council, and in accordance with the requirements of "stabilizing the overall situation, overall coordination, classified policies, and precise bomb disposal." we will persist in comprehensive and strict supervision in accordance with the law, strengthen risk prevention in key areas, severely crack down on violations of laws and regulations, rectify market chaos, and strive to maintain the stable operation of the market.

Only by stabilizing the market can we promote the capital market reform measures, and only by stabilizing the market can we better serve the real economy. Recently, the CSRC is still carrying out reform and exploration in mergers and acquisitions, the change of the Development and Review Commission, and the investigation of refinancing, all of which are key measures to increase the proportion of direct financing. Reform should not only be more stable on the road, but also hold a forum for shareholders at this time. It also shows that regulators, including the CSRC, attach importance to the stock market.

Multi-departments work together to mitigate risks, and there is still room for monetary policy

In addition to the CSRC, the central bank, the Bancassurance Regulatory Commission and local governments have all adopted various measures to reduce risks.

Yi Gang, governor of the central bank, said today that the current monetary policy remains sound and neutral, neither loosening nor tightening. There are enough policy tools in the monetary policy toolbox.

In terms of economic fundamentals, China's current economic growth is stable, and the target of 6.5% is expected to be achieved this year, perhaps slightly higher.The price level is in a benign range. The current CPI is 2% and the PPI is 4%. It is expected that the CPI for the whole year is slightly higher than 2%. The PPI is between 3 and 4%. Corporate profits have increased, and taxes and wages are also at a good level. Domestic consumption is the main driver of growth. In terms of balance of payments, the external surplus continues to shrink. China's current account surplus has been running for a long time, peaking at 10% of GDP in 2007, and has since declined year by year. The current account ran a deficit in the first half of this year and is likely to have a small surplus for the full year, which is expected to be less than 1 per cent of GDP. The above shows that China's economic growth has been mainly driven by domestic demand, consumption and services have become the main drivers, and the external surplus is shrinking.

In order to alleviate the equity pledge risk of the stock market, the Bancassurance Regulatory Commission will formulate corresponding policies to allow risk capital to participate in equity investment in a more flexible way to resolve the equity pledge risk of listed companies; Shenzhen SASAC has also set up special funds to improve the liquidity of listed companies through the combination of stocks and bonds.

Institutional point of view: long-term allocation to meet the starting point

Many market participants see opportunities in the market downturn.

Many private equity firms believe that "the worst time in the market is the best time to invest", "professional institutions invest in bargains", and "often the worst time in the market is the best time for PE investment". Although there are some fluctuations in the current capital market, better long-term value investment opportunities have emerged.

The head of the Wells Fargo fund said the domestic factors that suppressed the expansion of A-share valuations this year were changing positively. Domestic credit spreads have peaked and fallen since July as policy has become more aggressive, meaning the impact of credit contraction is weakening. The latest bank financial management rules hit the ground better than expected. At the listed company level, the ROE level reached 9.4% in the middle of this year, up significantly from 8.8% in the first quarter, meaning that the selection of individual stocks is already very meaningful.

The recent policy of reducing taxes and fees, as well as the voice of supporting the private economy, will continuously create conditions for the promotion of the endogenous value of A-shares. We are actively looking forward to the rebound of leading indicators such as social finance growth and M1, which may be the most significant sign for the A-share market to start a new return cycle.

People related to the Guangdong Development Fund also said that the financial market is often in a state of overreaction, but the law of mean regression has existed for a long time. Considering the controllable systemic risk of the economy, the medium-and long-term expected returns of A-shares are generally more attractive. In fact, foreign capital inflows into A-shares have reached an all-time high so far this year. From the perspective of value investment, the current is a better time for long-term capital allocation of A-shares.

First of all, after the policy shift to structural "broad credit", the current broad sense of social finance growth shows signs of stabilizing, which will actively underpin the operation of the economy.Different from the economic downward cycle after 2011, the current overcapacity of industrial enterprises has significantly alleviated, while real estate inventories are also low, and the deflationary pressure on the real economy is limited.

Second, in the environment of tighter US dollar liquidity, the main characteristics of the hit countries are high foreign debt, double deficits, low growth and high inflation, and China's economic situation is obviously more robust.

Third, the government's hedging policy is positive as a whole, including continuing to increase reform and opening up, reducing taxes and fees for enterprises and individuals, and implementing more flexible policies to stabilize growth, so as to turn external pressure into internal motivation.

Comments: promote reform to stabilize confidence, wait for the bright spring

The CSRC held a forum for investors over the weekend to consult investors on issues of concern to the market and investor representatives, showing that regulators have understood investors' concerns about the frequent decline of the market, reflecting the intention of maintaining stability and protecting the market. Liu Shiyu, chairman of the CSRC, said that it is necessary to organically combine various measures for the reform and opening up of the capital market and comprehensive and strict regulatory measures in accordance with the law with stabilizing and boosting confidence.

If the capital market wants to better serve the real economy and increase the proportion of direct financing, we must pay attention to the returns of investors. There are hundreds of millions of investors in A-shares. In the case of a continuous decline in the market, a large number of funds have evaporated and investors have suffered serious losses. Many investors have to cut and leave the market, which will not only affect the market trading volume, make investors' confidence more negative, and damage the normal operation of the market. It will also slow down the pace of capital market reform and opening up and hurt the capital market environment that serves the real economy.

"Stability" is the basis and premise of deepening the reform and opening up of the capital market. Giving full play to the advantages of the capital market to promote the combination of industry and finance is inseparable from the "stable" market environment.The recent continuous decline in the stock market has aroused concern, undermined the stable foundation, and deviated from the economic fundamentals to a certain extent. As the regulatory authority of the capital market, the CSRC has the obligation to explain clearly the true situation of the market and to curb the further contagion of irrational emotions. Since the beginning of this year, the overall development of China's economy has been stable and stable, and the resilience of fundamentals has exceeded expectations. with the fine-tuning and relaxation of macro policies, the credit crunch has begun to ease, and the downward trend of investment will be reversed, and the possibility that economic growth will remain in the "desirable range" is increasing. In the international environment, although trade frictions bring great uncertainty and market expectations may weaken the marginal pulling effect of external demand on the economy, China is looking for constructive solutions to resolve trade disputes. there is still considerable room for monetary policy tools, including interest rates, reserve requirements and monetary conditions to cope with uncertainty.

Past experience tells the marketThe continuous decline of the stock market will gather risks, so we must improve the risk monitoring, early warning and early intervention mechanisms, and strengthen overall planning and coordination from top to bottom to prevent problems in the bud.Recently, the risk of equity pledge has triggered market discussion, and some of the equity pledge risks of high-quality bids have been exposed again. In order to deal with the risks, financial supervision and control cooperation should go first. On the one hand, the Banco Insurance Regulatory Commission pointed out that it will formulate corresponding policies to allow dangerous capital to participate in equity investment in a more flexible way to resolve the equity pledge risks of listed companies. On the other hand, Shenzhen SASAC has set up special funds to improve the liquidity of listed companies through the combination of stocks and bonds. These measures will help to alleviate the risk of equity pledge in the market, so that some stocks in danger of a "soft landing". If the stock market wants to welcome spring, it needs to take measures to keep out the cold in winter and eliminate the hidden dangers in the bud, so as to wait for the bright spring.

It takes time for the market sentiment to calm down, and the market decline is also affected by many factors. however, the market's over-pessimistic expectations will eventually be falsified by resilient fundamentals, and high-quality assets will eventually usher in an opportunity to repair after overfalling.