hello, stock market | when emotions explode, patient capital is the “smart money”
2024-09-30
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"high volume changyang", "trillion transactions", "recovering 3,000 points"... in the past few days, stimulated by a series of heavyweight policies, the stock market has been boiling for a long time.
patient capital is the real “smart money”
the political bureau of the cpc central committee held a meeting on september 26. the meeting emphasized that efforts should be made to boost the capital market, vigorously guide medium and long-term funds to enter the market, and open up the blocking points for social security, insurance, financial management and other funds to enter the market. it is necessary to support mergers, acquisitions and reorganizations of listed companies, steadily promote the reform of public funds, and study and introduce policies and measures to protect small and medium-sized investors.
this is the second time in two months that the capital market has been mentioned at a politburo meeting. the political bureau meeting held in july proposed the need to coordinate risk prevention, strengthen supervision, promote development, boost investor confidence, and enhance the inherent stability of the capital market.
on the night of september 26, the china securities regulatory commission announced that recently, with the consent of the central financial commission, the central financial office and the china securities regulatory commission jointly issued the "guiding opinions on promoting the entry of medium and long-term funds into the market" (hereinafter referred to as the "opinions"). specifically, the "opinions" mainly introduce three key measures:
the first is to build and cultivate a capital market ecosystem that encourages long-term investment.
the second is to vigorously develop equity public funds and support the steady development of private securities investment funds.
the third is to strive to improve the supporting policies and systems for the entry of various types of medium and long-term funds into the market.
for some time, “patient capital” and “medium- and long-term funds” have been hot words. compared with short-term capital, the investment logic of patient capital is different. the advantage of patient capital is that it operates with a high degree of professionalization and stability. it places more emphasis on long-term returns and does not care about short-term market fluctuations. the oversoldness of the short-term market just brings a low-cost advantage for medium and long-term capital to enter the capital market. in addition, the increase in long-term funds will further reflect the value discovery function of the market.
data show that by the end of august this year, the total market value of a-shares held by professional institutional investors such as equity public funds, insurance funds, and various types of pension funds was close to 15 trillion yuan. among them, the national social security fund has been in the domestic stock market since its establishment. the average annualized return on investment has reached more than 10%, becoming a model of long-term investment and value investment in the a-share market. it can be seen that patient capital is a correction of short-term speculation and an exploration of future economic development models. in this sense, patient capital is the real "smart money."
but the fact is that there are still obvious deficiencies in the development of long-term funds in my country's capital market. problems such as insufficient total medium and long-term funds, poor structure, and insufficient leadership are still prominent. the institutional environment for "long-term money and long-term investment" is not yet complete. form.
on the other hand, despite the twists and turns in china's economy, the long-term positive trend has not changed. especially boosted by a series of combined measures such as lowering reserve requirements and interest rates, and reducing existing housing loans, market confidence has been greatly boosted, and chinese assets are being overall optimistic. therefore, the promulgation of the "opinions" aims to vigorously guide medium and long-term funds to enter the market, open up the blocking points for social security, insurance, financial management and other funds to enter the market, and strive to boost the capital market. it is a timely rain.
capital requires patience, and reform also requires patience.
the capital market is an important support for a strong financial country, and its importance is self-evident.
in july last year, the politburo meeting proposed “the need to activate the capital market and boost investor confidence.” at the end of october last year, the central financial work conference proposed the need to “give better play to the hub function of the capital market, promote the deepening and solidification of the stock issuance registration system, develop diversified equity financing, vigorously improve the quality of listed companies, and cultivate first-class investment banks and investment institutions. promote the high-quality development of the bond market" while "activating the capital market." on april 12 this year, the new "nine articles of the nation" were officially released. the china securities regulatory commission and the exchanges immediately released more than 20 supporting documents. the "1+n" policy system of the capital market was gradually implemented, and the capital market strengthened supervision and risk prevention. , and achieved some preliminary results in promoting high-quality development. during this period, relevant departments also repeatedly proposed the goal of "strengthening patient capital", but objectively speaking, the market performance was not ideal.
previously, the shanghai composite index had been hovering near 3,000 points for a long time. it hit a periodic low of 2,635 on february 8. as of the end of august, it had fallen for four consecutive months. investor confidence was low. it was related to safety, regulation, transparency, an open, dynamic and resilient market is a far cry from that.
it can be seen that capital requires patience, and reform also requires patience. be a friend of time. we should take a long-term view and deepen capital market reform. it cannot be achieved overnight. any new system must undergo market testing and regulatory refinement.
judging from the market sentiment in the past few days, the confidence of investors in the secondary market is being ignited, and their enthusiasm for long positions is gradually aroused; from a financial perspective, with the implementation of rrr and interest rate cuts, rmb assets are gradually becoming an important object of global capital attention and allocation. from a fundamental point of view, the fundamentals of my country's economy and favorable conditions such as a vast market, strong economic resilience, and great potential have not changed... this has provided opportunities for further reform and opening up of my country's capital market, and also put forward higher requirements.
(popular news·fengkou finance reporter liu xiao)
