The outline of the 15th Five Year Plan clearly proposes to improve the capital market function that coordinates investment and financing, optimize basic systems such as issuance and listing, information disclosure, mergers and acquisitions, and delisting, improve the quality of listed companies, and establish a long-term mechanism to enhance internal stability. Against the backdrop of intensifying international geopolitical conflicts and global financial market turbulence, the strategic significance of this deployment is highlighted. Industry insiders interviewed by reporters pointed out that the A-share market has multiple supporting factors, and with the continuous promotion of comprehensive reforms in investment and financing, including the entry of medium and long-term funds, the "stability" foundation of the capital market will become more solid. A-shares are supported by multiple factors. In recent times, the global financial market has been volatile due to the intensification of international geopolitical conflicts. According to Wind statistics, the Dow Jones Industrial Average, Nasdaq Index, and S&P 500 Index have fallen by 5.65%, 3.18%, and 4.33% respectively since March. In the Asian market, the Nikkei 225 Index and the Korean Composite Index have fallen by 11.21% and 11.05% respectively during the same period. The fluctuation range of commodity prices such as crude oil and gold has significantly increased. The turbulence in global financial markets highlights the challenges faced by risk assets in the face of intensifying geopolitical conflicts. From the perspective of market performance, compared to other Asian economies, the A-share market has shown some resilience. According to Wind data, since March, the daily trading volume of A-shares has remained stable above 2 trillion yuan, while the balance of the two financing companies has remained stable at around 2.6 trillion yuan. Industry insiders generally believe that A-shares are supported by multiple factors. According to He Ning, Chief Economist at Open Source Securities, the driving force behind China's asset revaluation is gradually shifting from "valuation repair" to a more sustainable "profit driven" new stage. From a macro fundamental perspective, the Chinese economy has demonstrated strong resilience and growth resilience in a complex external environment. Industrial production has steadily increased from January to February, AI demand has supported strong exports, and the three major sub items of fixed investment have bottomed out and rebounded under the impetus of fiscal intervention. Price levels continue to recover, and economic fundamentals form a solid foundation for asset value revaluation. In addition, geopolitical conflicts accelerate the global transition between new and old energy sources, and the fragility of fossil energy supply chains drives countries to seek "energy security" and "de risking". China not only has the advantage of the entire new energy industry chain and technological leadership, but also its energy diversification strategy and large-scale strategic reserves are conducive to buffering the negative impact on the economy. Meng Lei, a China stock strategy analyst at UBS Securities, stated that the implied volatility of major A-share indices in recent times has been lower than during the escalation of the global trade conflict in April 2025 and other major overseas indices. It is expected that the profit growth rate of all A-shares will increase to 8% in 2026. In terms of profit margin, the introduction of more supportive policies and the promotion of "anti internal competition" are expected to further improve the profit margin of non-financial sectors. The net flow of funds from broad-based ETFs has come to an end since February. Considering the incremental macro policies, the burst of technological innovation sparks, and the continuous reform of capital markets and market value management, the valuation of the A-share market is expected to be restored in the medium term. Regulatory focus on enhancing the intrinsic stability of the market. Against the backdrop of global financial market turbulence, it has become particularly important to enhance the intrinsic stability of China's capital market and prevent and resolve external shocks. Regulatory authorities are highly concerned about this. The Chairman of the China Securities Regulatory Commission, Wu Qing, previously stated that efforts should be made to strengthen the "breakwater" and "wave prevention" of capital market risks. We will comprehensively strengthen market risk monitoring, pay close attention to the cross market, cross period, and cross-border transmission of risks, consolidate and strengthen strategic strength reserves and market stability mechanism construction, further improve the mechanism for medium and long-term capital inflows, dynamically improve the policy toolbox for dealing with external input risks, prepare and make good use of the toolbox, and make every effort to maintain the stable operation of the market. The China Securities Regulatory Commission recently emphasized the need to strengthen bottom line thinking, closely track changes in the international financial market and internal and external environment, strengthen the linkage monitoring and supervision of domestic and international futures and spot markets, continuously consolidate and strengthen the construction of China's characteristic market stability mechanism, and make greater efforts to promote the improvement of governance and value enhancement of listed companies, further enhancing the inherent stability of the market. Tian Lihui, Dean of the Institute of Financial Development at Nankai University, told reporters that the key to building a strong "breakwater" for the capital market lies in shifting from "passive response" to "active construction" of risk isolation mechanisms, which requires the implementation of a "monitoring isolation coordination" trinity. We need to use regulatory technology to build a comprehensive risk radar that can track cross-border fund movements and cross market transmission pathways in real time; Dynamically enrich the policy toolbox, strengthen countercyclical regulation and the role of medium - and long-term funds as a "ballast stone"; Deepen cross-border regulatory cooperation and improve macro prudential management of capital flows. He stated that at the micro level of the market, it is necessary to strictly control the cross-border exposure and derivative leverage of financial institutions, establish stress testing and early warning systems for cross-border risk contagion, and prevent severe fluctuations in overseas asset prices from being impacted through channels such as QDII and interconnectivity. At the level of expected management, it is necessary to further enhance policy transparency and communication efficiency, hedge external uncertainty with deterministic policies, and avoid self realization of panic emotions. Promoting the entry of medium and long-term funds into the market is a key step in enhancing the inherent stability of the market. This year's government work report proposes to further improve the mechanism for medium - and long-term capital inflows into the market. Wu Qing stated that it is necessary to improve the market mechanism and ecology of "long-term investment", perfect the construction of China's characteristic market stability mechanism, enrich the means and mechanisms of cross cycle and counter cycle adjustment, and further enhance the inherent stability of the market. Huaxi Securities pointed out that from the perspective of policy context, from the September 2024 meeting of the Political Bureau of the Communist Party of China Central Committee, which clearly proposed to "vigorously guide the entry of medium and long-term funds into the market", to the implementation of the "Implementation Plan for Promoting the Entry of Medium and Long term Funds into the Market" in 2025, and then to this year's government work report, which clearly proposed to "further improve the mechanism for the entry of medium and long-term funds into the market", the policy focus is not only on "promoting entry into the market", but also on making long-term funds "willing to come, stay, and grow large", highlighting the long-term ecological construction and order maintenance of the capital market, indicating that medium and long-term funds are not only temporary funds to support the market, but also an important component of the construction of the capital market stability mechanism. Tian Lihui pointed out that internal stability is the "immune system" of the market itself, which is more important than any external support. The essence of intrinsic stability is to enable the market to have both resilience to withstand shocks and self-healing elasticity. Enhance internal stability, and on the funding side, make medium and long-term funds truly become ballast stones, changing the fragile structure of the market that overly relies on short-term funds; On the asset side, it is necessary to improve the quality of listed companies, strictly control the entry and smooth exit, make dividend buybacks the norm, and provide investors with stable return expectations; On the institutional side, it is necessary to improve the countercyclical adjustment mechanism and form a self repairing rule system in trading mechanisms, leverage constraints, risk hedging tools, and other aspects. (New Society)