Since the launch of a series of policy "combination punches" in September last year, the Shanghai Composite Index has steadily climbed from nearly 2900 points to over 3700 points. Especially since July this year, market momentum has been further released. Recently, the transaction volume of the A-share market has exceeded 2 trillion yuan for several consecutive days, the balance of the two financing sectors has returned to over 2 trillion yuan after a decade, and the Shanghai Composite Index has reached a new high in nearly a decade... The A-share market is full of opportunities for growth, driven by the strong momentum brought by the continuous efforts and precise empowerment of China's macro policies. With the effective implementation of macroeconomic policies, the Chinese economy has shown strong resilience and continues to transmit to the capital market. Investor confidence has steadily increased, and there has been a positive interaction between funds and emotions. The internal stability of the market has significantly improved, and a solid foundation for asset valuation has accelerated. From "policy protection" to "economic resilience", then to "market stability" and even "value reassessment", a clear and interconnected positive cycle chain has been formed, injecting deep impetus into the sustained and healthy development of the A-share market. On September 24th last year, at the press conference of the State Council Information Office, multiple macro policies were launched simultaneously, covering multiple dimensions such as currency, real estate, and capital markets; Subsequently, the Political Bureau meeting of the Communist Party of China Central Committee held on September 26th deployed the next steps of economic work, further releasing policy warmth. Since then, facing the complex situation and multiple challenges of the domestic and international economic environment, China's macro policies have always been anchored to the general tone of "seeking progress while maintaining stability". Through the precise coordination of monetary and fiscal policies, and the organic combination of cross cycle and countercyclical adjustments, the foundation of stable and healthy economic development has been firmly established. In terms of monetary policy, the People's Bank of China has continued to ensure reasonable and sufficient liquidity in the financial market through a three-dimensional policy combination of "total volume regulation+price guidance+mechanism innovation". Specifically, on the one hand, two comprehensive reserve requirement ratio cuts (September 27, 2024 and May 15, 2025) have released about 2 trillion yuan of long-term funds, medium-term lending facilities (MLF) have been continuously increased for five months (starting from March 2025), and buyout reverse repurchase operations have been normalized, establishing a cross cycle liquidity supply mechanism; On the other hand, by lowering the 7-day reverse repo rate, we can guide the market interest rate downward and effectively reduce the financing costs for enterprises and residents. At the same time, innovative capital market special tools such as securities, funds, insurance company swaps, stock repurchases, increased holdings, and refinancing have been launched, providing market entities with more flexible liquidity management tools and stabilizing market expectations by guiding long-term funds into the market. Fiscal policy focuses on continuously increasing expenditure intensity and optimizing expenditure structure, which not only strengthens people's livelihood security, stabilizes residents' consumption ability and willingness, but also provides endogenous driving force for economic growth; By investing in key areas, we aim to cultivate new growth poles and promote industrial structure upgrading and innovative development. The latest data from the National Bureau of Statistics shows that from January to July 2025, investment in high-tech service industries increased by 6.2% year-on-year, which is 4.6 percentage points higher than total investment; The proportion of total investment in the service industry is 5.1%, an increase of 0.4 percentage points compared to the same period last year. At the same time, the tax reduction and fee reduction policies continue to strengthen and increase efficiency. Since the beginning of this year, tax incentives for industries such as manufacturing and technological innovation have been continued and optimized. In addition, the key role of special bonds in stabilizing investment and filling gaps has been played. In the first half of the year, a total of 2.16 trillion yuan of new local government special bonds were issued nationwide, a year-on-year increase of 45%, with a focus on areas such as transportation, water conservancy, and affordable housing projects. This not only drives the recovery of the industrial chain through infrastructure investment, but also forms high-quality assets through project implementation. At the same time, it provides stable government bond investment targets for the capital market, achieving synergy with monetary policy. This series of policies has helped China's economy operate smoothly in a complex environment, and has built a foundation for the healthy development of the A-share market through stable expectations. Li Zhan, Chief Economist of the Research Department of China Merchants Fund, stated in an interview with reporters: "Fiscal policy continues to intensify, and the scale of local special bond issuance has significantly expanded year-on-year. In addition, the central bank has implemented reserve requirement ratio cuts and interest rate cuts, maintaining a loose overall funding situation and providing solid support for the market." The policy direction aims to cultivate the "new" strength of the capital market. The precise empowerment of macro policies not only injects new vitality into current economic growth, but also solidifies the industrial foundation for long-term development. This structural optimization is profoundly reshaping the value logic of the capital market. Since September 24th last year, while stabilizing the economic fundamentals, policies have focused on key areas such as technological innovation, industrial upgrading, and new quality productivity, and have promoted the concentration of resources in high-efficiency and high value-added fields through targeted support. For example, the policy's support for technological innovation continues to increase. On May 7 this year, the People's Bank of China and the China Securities Regulatory Commission jointly issued an announcement on supporting the issuance of science and technology innovation bonds, and proposed a number of important measures to support the issuance of science and technology innovation bonds from aspects such as enriching the product system of science and technology innovation bonds and improving the supporting mechanism for science and technology innovation bonds. Subsequently, the Shanghai, Shenzhen, and North Stock Exchanges and the Traders Association followed up and released detailed measures, jointly forming a "combination punch" to support the issuance of science and technology innovation bonds. According to Wind Information data, as of May 7th, a total of 788 science and technology innovation bonds have been issued in the market, with an issuance scale of 980.249 billion yuan. The number and scale of issuances have increased by 102.05% and 159.09% respectively year-on-year, providing solid financial support for enterprises to overcome core technology bottlenecks, expand R&D investment scale, and accelerate the transformation of scientific and technological achievements. The cultivation of new quality productivity is of paramount importance in policy implementation. On June 18th, the China Securities Regulatory Commission released the "Opinions on Setting up a Science and Technology Innovation Growth Layer on the Science and Technology Innovation Board to Enhance Institutional Inclusiveness and Adaptability", which proposed to support more cutting-edge technology companies such as artificial intelligence, commercial aerospace, and low altitude economy to apply the fifth set of listing standards on the Science and Technology Innovation Board based on industrial development and market demand, and to increase support for emerging and future industries. Policy empowerment of technological innovation and new quality productivity has also promoted the improvement of capital market structure, efficiency, and investment value. On the one hand, it has significantly increased the "scientific content" of listed companies. Compared to 10 years ago, among A-share listed companies with a market value exceeding 100 billion yuan, the proportion of technology enterprises has increased from 12% to 27%, forming a clustering effect in fields such as integrated circuits, biomedicine, and new energy. On the other hand, it has promoted the performance growth of listed companies. Over the past five years, the compound annual growth rates of revenue for listed companies in the new generation information technology and new materials industries have reached 12.5% and 17.9%, respectively. At the same time, it has improved investor returns, with dividend buybacks exceeding 730 billion yuan in the past five years on the Science and Technology Innovation Board and the Growth Enterprise Market alone. From this, it can be seen that this precisely targeted policy empowerment not only strengthens the momentum of economic growth, but also forms a consensus in the capital market of "premium of high-quality assets". Investors' recognition of enterprises with core competitiveness and in line with the direction of industrial upgrading continues to increase, promoting the market to deepen towards a "structural market" and continuously injecting high-quality momentum into A-shares. Chen Li, director of Chuancai Securities Research Institute, told reporters that policies guide resources to gather in new directions and fields such as technological innovation, cultural innovation, and new consumption, laying the foundation for the medium-term structural market. In the future, with the continuous release of policy effectiveness and the sustained economic recovery, A-shares are expected to continue structural opportunities amidst fluctuations. (New Society)