Opinion: Cultivating ‘Patient Capital’ in China’s Stock Market
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All eyes are on the trajectory of China’s A-share market. At a recent working conference, the China Securities Regulatory Commission emphasized that while the capital market is generally stabilizing and improving, it continues to face complex challenges with intertwined internal and external risks. The regulatory body called for “prioritizing stability” and “resolutely preventing drastic market fluctuations,” while outlining a push to create a market ecosystem defined by “long-term capital for long-term investment.”
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- China’s A-share market rose over 50% since September 24, 2024, reaching a 10-year high amid reforms and regulatory measures ensuring stability.
- Authorities emphasize attracting long-term capital (insurance, pensions, foreign funds) through reforms, increased transparency, and curbing speculation.
- Efforts focus on building a robust market ecosystem, cracking down on financial fraud and rumor-mongering, and prioritizing solid economic fundamentals.
- September 24, 2024:
- The rally in China’s A-share market began, with the Shanghai Composite Index rising from the 2,600-point level.
- 2025:
- The mutual fund industry implemented significant reforms in fee structures, manager compensation, sales practices, and performance benchmarks.
- By 2026:
- The Shanghai Composite Index had climbed to the 4,100-point level, a cumulative gain of over 50% since September 24, 2024.
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