Five chief executives speak together: to stabilize the market requires the confidence of all parties

category:Finance
 Five chief executives speak together: to stabilize the market requires the confidence of all parties


On February 1, the peoples Bank of China, the Ministry of finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of foreign exchange issued the notice on further strengthening financial support to prevent and control the epidemic of pneumonia caused by new coronavirus. It is possible to maintain a reasonable and sufficient liquidity, provide differentiated credit support to enterprises in severe epidemic areas, especially small and micro enterprises, and make it difficult to repay loans due to enterprises seriously affected by the epidemic 30 practical measures have been put forward in terms of extension or renewal of loans. For the smooth operation of the market, the central bank and the CSRC have made many favorable measures, which will play a role in stabilizing the market. Li Daxiao, chief economist of Yingda securities, said in an interview with Securities Daily that a number of measures have released positive policy signals and given confidence to the market.

Although the negative effects do exist, they also need to be viewed objectively. The state has introduced relevant measures to mitigate the negative impact of the epidemic on economic operation, including the central banks investment of 1.2 trillion yuan in the open market, and the joint issuance of documents by multiple departments calling for further strengthening of financial support. Li Zhan, chief economist of Zhongshan securities, said in an interview with the Securities Daily that on the whole, the negative impact of the epidemic was mainly short-term and temporary, with little impact on the medium and long-term trend of Chinas economy and capital market. The positive factors supporting the medium and long-term trend of the economy and market, such as the improvement of the service ability of the financial system and the strength of the stable growth policy, still exist. These positive factors will drive the capital market to go well. Investors should not be overly pessimistic about the follow-up market trend.

Zhang Ming, chief economist of Ping An Securities, told Securities Daily that in the medium and long term, A-share market need not be pessimistic. On the one hand, the current valuation of A-share is still relatively low in the global market and still has investment value; on the other hand, from the perspective of Chinas economic fundamentals, the overall trend of the economy is optimistic and stable. Moreover, the new round of regional economic integration that China is promoting is also conducive to improving the efficiency of resource allocation and stimulating economic growth.

The current market of A-share market is mainly to follow the international market to make up the decline. Liu Feng, chief economist of China Galaxy Securities, told Securities Daily that it is important to maintain liquidity, adjust allocation according to his own situation and reduce risk exposure. Dont blindly hype individual stocks. Key industries and indexes will gradually show investment value due to panic selling and oversold.

Zheng Lei, chief economist of Baoxin finance, also agreed. In an interview with the Securities Daily, he said that from the perspective of overseas market performance, it is inevitable that a shares will fluctuate significantly on the first day of opening. However, the market will not lose control when the central bank and the CSRC have made arrangements.

Data shows that during the Spring Festival, the global stock market fell significantly. S & P 500 index fell 3.01%, NASDAQ index fell 2.68%, Hang Seng Index fell 5.72%, A50 futures fell 7.04%, other countries stock markets also fell to varying degrees.

Market convergence

On February 2, the head of relevant departments of the CSRC said in an interview that the relevant departments will keep a high vigilance, adhere to the bottom line thinking, introduce and study hedging tools, and ease market panic for possible changes in the A-share market after the opening of the market.

In addition to policy guarantee, Li Daxiao believes that people from all sides of the market should also actively invest in stabilizing the market. For example, long-term funds can increase the strength of entering the market and become the stock market stabilizer; shareholders of listed companies can also actively buy back to stabilize the market; investors should also continue to adhere to value investment and rational investment to protect the market.

In response, Zhang Ming agreed. He pointed out that to prevent the excessive adjustment of the stock market, on the one hand, the government should provide sufficient liquidity support; on the other hand, important institutional investors such as social security funds should also play a role. In the case of severe market fluctuations, bargain hunting should be appropriate to enhance market confidence.

We should focus on guiding the rational investment behavior of institutional investors, avoid the irrational panic catharsis, and play a bad demonstration effect. Liu Feng believes that institutional investors are the cornerstone of market stability. They should be more professional, avoid irrational panic selling behavior and short-term speculation, correctly identify and use hedging and other tools to hedge risks, based on rational and scientific investment concept, objectively analyze the impact of the epidemic on the economy and market, and make rational investment choices. Li Zhan believes that to keep the market stable, we should continue to introduce policies to reduce the negative impact. For example: provide financial and financial subsidies for small and medium-sized enterprises and industries with greater impact. Help enterprises to prevent and control the epidemic and guide the recovery of social production order in a timely manner. Zheng Lei also said that it is necessary to make appropriate adjustments to macroeconomic policies, such as: reducing reserve ratio and interest rate; exempting the service industry from January to February tax, and other industries appropriately reducing taxes; providing targeted subsidies to targeted groups; and accelerating the development of planned construction projects this year. Source: responsible editor of Securities Daily: Yang qian_nf4425

We should focus on guiding the rational investment behavior of institutional investors, avoid the irrational panic catharsis, and play a bad demonstration effect. Liu Feng believes that institutional investors are the cornerstone of market stability. They should be more professional, avoid irrational panic selling behavior and short-term speculation, correctly identify and use hedging and other tools to hedge risks, based on rational and scientific investment concept, objectively analyze the impact of the epidemic on the economy and market, and make rational investment choices.

Li Zhan believes that to keep the market stable, we should continue to introduce policies to reduce the negative impact. For example: provide financial and financial subsidies for small and medium-sized enterprises and industries with greater impact. Help enterprises to prevent and control the epidemic and guide the recovery of social production order in a timely manner.

Zheng Lei also said that it is necessary to make appropriate adjustments to macroeconomic policies, such as: reducing reserve ratio and interest rate; exempting the service industry from January to February tax, and other industries appropriately reducing taxes; providing targeted subsidies to targeted groups; and accelerating the development of planned construction projects this year.