Friends, let’s cut through the noise. A recent piece in the Economic Daily, penned by Jin Guanping, hits on something crucial: China’s capital markets need both stability and dynamism. It’s not an ‘either/or’ situation; it’s a ‘both/and.’
We’ve been talking about unlocking more long-term capital – and this isn’t just about throwing money at the problem. It’s about removing the roadblocks, simplifying access, and genuinely attracting patient, long-term investment. This means serious work on addressing lingering structural issues.
But here’s the kicker – the biggest draw isn’t just access. It’s quality. Listed companies must step up. We need to see improved governance, better performance, and frankly, more shareholder returns. Increased dividends and share buybacks are not ‘nice-to-haves’; they’re essential for building investor confidence.
Let’s break down why this matters – and why now:
China’s economic foundation is solid. We have a stable macro environment and a robust regulatory framework.
This creates a perfect environment to foster a capital market that doesn’t just trade, but builds, empowering emerging industries and high-quality development.
Long-term capital isn’t just money; it’s a vote of confidence. It says investors believe in the long-term story.
Without active shareholder returns, markets stagnate, and investor interest wanes, ultimately hindering growth.
Ultimately, we have the capacity to build something truly exceptional – a market that’s not just big, but resilient, attractive, and focused on generating value. It’s time to demand more, and I believe we will see the change. Don’t just watch, participate!
