At the press conference held by the State Council Information Office on September 24, 2024, the People's Bank of China, the State Administration for Financial Regulation, and the China Securities Regulatory Commission jointly launched a package of policies to stabilize growth, stabilize the market, and stabilize expectations, sending a strong signal of financial support for high-quality economic development. Since the beginning of this year, the daily trading volume of the A-share market has repeatedly reached 3 trillion yuan, and the balance of financing has exceeded 2.4 trillion yuan... A set of latest data reflects that in the past year since the implementation of the "9.24" package of policies, the foundation of China's capital market's "stability" has continued to consolidate, and the "dynamic" ecology has accelerated. These positive changes cannot be achieved without the continuous efforts and precise implementation of policies. The implementation of the "1+N" policy system in the capital market has been effective, achieving multidimensional breakthroughs in funding supply, market structure, and ecological construction. Market participants predict that the next step is to deepen the comprehensive reform of investment and financing, accelerate the new round of capital market reform and opening up, enhance the attractiveness and inclusiveness of the market, and continuously improve the internal stability and investment attractiveness of the capital market. These policy measures are worth looking forward to. The characteristic of "activity" highlights multiple key indicators indicating that the vitality of the A-share market is continuously being released. Driven by a series of policies, market trading activity has significantly increased, and investors' enthusiasm for participation is high. ——The scale of dual financing in the entire market has increased, and the risk appetite in the credit market is becoming more optimistic. As of September 18th, the balance of margin trading and securities lending in the market was 2402.465 billion yuan. Li Qiusuo, Chief Domestic Strategy Analyst of the Research Department of China International Capital Corporation, believes that the return of the balance of the two funds to a high level indicates that investors are continuously increasing their allocation of A-share equity, and market activity continues to improve. ——The daily average transaction volume has significantly increased. Since the beginning of this year, the daily trading volume of the A-share market has repeatedly exceeded 3 trillion yuan, with a total market value of over one trillion yuan. Tian Lihui, Dean of the Institute of Financial Development at Nankai University, believes that the current increase in transaction volume is the result of the joint efforts of policies and the market. From a policy perspective, macro policies such as fiscal subsidies and institutional reforms such as long-term capital inflows are coordinated to release liquidity and reshape pricing logic. Industrial policies focus on technological self-reliance and self-improvement, driving up the valuation of related tracks. From a financial perspective, the dual resonance of retail investors, leveraged capital inflows, and foreign investment recovery has led to a shift in risk appetite. From a fundamental perspective, in a low interest rate environment, funds flow towards high dividends and growth assets, and some companies' interim performance exceeds expectations, forming a positive cycle of "valuation repair+performance realization". ——Investors are entering the market at an accelerated pace. According to data from the Shanghai Stock Exchange, the number of new A-share accounts opened in August was 2.6503 million, a month on month increase of 34.97% and a year-on-year increase of 165%. Zhang Xia, Chief Strategy Analyst of China Merchants Securities, believes that the current financing balance and private fund scale continue to rise, the number of active individual investors opening accounts, and the continuous net subscription of industry ETFs have become the main channels for residents' incremental funds to enter the market. Looking ahead to the future, the issuance of equity public funds will continue to relay and is expected to become one of the important sources of incremental funds. One of the key factors contributing to the increase in market activity and the rebound in investor risk appetite is the continuous consolidation of the foundation of "stability" in the context of policy synergy and effectiveness. Since September 24th last year, a package of heavyweight financial policies has been implemented, and the coordination of macro policies has continued to strengthen, providing solid support for market stabilization, recovery, and confidence repair. Deepening the reform of the capital market system is the driving force for enhancing the inherent stability and activity of the market. The launch of the "1+6" policy on the Science and Technology Innovation Board, the implementation of the new version of the management measures for major asset restructuring of listed companies, the promotion of medium - and long-term fund entry and public fund reform, and the release of the "Implementation Opinions on Doing a Good Job in Finance in the Capital Market"... In the past year, multiple policies have worked together to enhance market resilience and depth from multiple dimensions such as market level, fund structure, and service entities. These policy measures continuously improve the multi-level capital market system from multiple dimensions such as market stratification, trading mechanisms, capital supply, and serving the real economy, enhance the inherent stability and activity of the market, and lay a solid foundation for the long-term healthy development of the capital market. ”Analysis by Tian Lihui. Promoting the entry of medium and long-term funds into the market is a key move to enhance market vitality and strengthen the inherent stability of the capital market. The Guiding Opinions on Promoting the Entry of Medium and Long term Funds into the Market and the Implementation Plan for Promoting the Entry of Medium and Long term Funds into the Market have been issued, further expanding the pilot scope of long-term investment of insurance funds, and comprehensively implementing long-term assessments of public funds, pension funds, etc. for more than 3 years... These institutional arrangements face the problems of "insufficient long-term funds" and "insufficient long-term funds" in A-shares, focusing on clearing the entry barriers and demonstrating the policy determination to promote "long-term investment". In the view of Liu Chen, a researcher at the China Banking Research Institute, through a series of policies such as the wave of repurchases by listed companies, the "quasi equalization" function of central Huijin, the strong promotion of market value management and assessment by the State owned Assets Supervision and Administration Commission, and the joint increase of institutional investors, the force of market "stability" continues to grow. Building a market ecosystem that values law and trustworthiness is an important guarantee for consolidating the market's stability and positive trend. From cracking down on fraudulent issuance and continuous information disclosure fraud in accordance with the law, to cracking down on illegal activities that interfere with the normal operation of the market and disrupt the order of the capital market, such as the dissemination of false information, "rights protection and black industry", and unfair competition in the issuance and listing process, to promoting the improvement of the quality of listed companies through typical case trials, and facilitating investors to protect their legitimate rights and interests in accordance with the law... In the view of Lv Chenglong, associate professor of the Law School of Shenzhen University, regulating the behavior of securities, futures and fund operating institutions and other market participants in accordance with the law is comprehensively promoting the high-quality development of the capital market and continuously optimizing the good market ecology of investors' willingness to come, stay, and develop well. Reform is starting again. Currently, the market is stabilizing and consolidating, but the foundation for stability still needs to be strengthened. Next, with the expectation of further deepening the reform of capital market investment and financing, and promoting listed companies to enhance their investment value, the inherent stability and long-term attractiveness of the market are expected to be further enhanced. In terms of financing, it is expected that policy measures to better support the development of new quality productivity will be launched, deepen the reform of the Science and Technology Innovation Board, Growth Enterprise Board, and Beijing Stock Exchange, and enhance institutional inclusiveness and adaptability. Tian Xuan, Dean of the National Institute of Finance at Tsinghua University, believes that on the basis of a significant increase in stock market activity, the positioning of the Science and Technology Innovation Board and the Growth Enterprise Market should be further improved, the listing channels for unprofitable enterprises should be expanded, and market inclusiveness should be enhanced. In terms of investment, promoting the entry of medium and long-term funds into the market and developing patient capital are still the focus. We can improve the supervision of equity investments in insurance, annuities, and other funds, promote long-term assessments, and optimize market entry mechanisms for wealth management and trusts. Improve the quality of listed companies, strengthen the construction of a system for punishing and preventing financial fraud, make good use of market value management tools, and enhance investor returns. We should increase tax incentives for personal pension funds, simplify processes, promote system interoperability, and attract more medium - and long-term funds into the market. ”Tian Lihui suggested. In terms of assets, it is necessary to promote listed companies to enhance their investment value, strictly control the transfer of benefits, and improve corporate governance. Chen Li, director of Chuancai Securities Research Institute, suggested that the "Six Articles on Mergers and Acquisitions" and the management measures for major asset restructuring of listed companies should be further implemented to promote resource integration and industrial upgrading; Strictly implement the policy of returning all items and accelerate the clearance of inferior enterprises; Promote the implementation of financial fraud punishment and prevention opinions, strengthen the supervisory function of independent directors, further consolidate the foundation of market stability, and stimulate the driving force of vitality. (New Society)