Share buybacks, increases in holdings, dividends, and the "heat index" of these activities continue to rise; efforts to promote medium and long-term capital entering the market, and public solicitation of opinions on guidelines for market value management; strict crackdown on illegal share reductions, and orders to repurchase... Recently, a series of new changes and measures in the capital market have vividly reflected the regulatory orientation of "investor-centricity."

Market insiders anticipate that, adhering to the investor-centric approach, regulatory authorities will systematically review and assess key institutional arrangements in the capital market from the perspective of maintaining market fairness. They will promote the investability of listed companies, enhance the inherent stability of the capital market, strictly enforce regulatory laws, and improve investors' sense of gain, better assisting in stabilizing the economy, the market, and expectations.

Promoting the Investability of Listed Companies

Promoting the investability of listed companies is a top priority in practicing the "investor-centric" philosophy. Investability is also one of the criteria for evaluating the high-quality development of listed companies.

Market participants believe that improving the quality evaluation standards of listed companies, urging and guiding them to strengthen the awareness of rewarding investors, and actively carrying out share buybacks and cancellations, as well as cash dividends, are important manifestations of vigorously promoting the investability of listed companies.

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Gao Ruidong, Chief Economist at Everbright Securities, stated that the regulatory authorities' continuous improvement of the system, guiding listed companies to further reward investors through cash dividends and share buybacks in line with their development and financial conditions, will attract more investors and enhance the valuation of listed companies.

Further strengthening the construction of market value management mechanisms is also an important measure to enhance the investability of listed companies. The China Securities Regulatory Commission (CSRC) has publicly solicited opinions on the "Guidance for Listed Companies No. 10 - Market Value Management (Draft for Comments)," requiring listed companies to legally manage their market value.

CITIC Construction Investment Securities believes that the draft for comments responds to investors' demands for listed companies to conduct market value management, aiming to further guide listed companies to improve investability and enhance the level of investor returns.

In addition to investability, investor protection during the delisting process of listed companies is also a concern. Emphasizing the "investor-centric" philosophy and building a new market ecosystem that can "exit smoothly" and "exit stably" has become a common call. Industry insiders believe that delisting involves regulatory authorities, investor protection agencies, local governments, and other aspects. To achieve the goal of exiting smoothly and stably, the joint efforts and collaborative forces of all parties are required.

Enhancing the Inherent Stability of the Capital Market

Enhancing the inherent stability of the capital market is crucial for maintaining investor confidence and ensuring the healthy development of the financial ecosystem. This involves a multifaceted approach that includes improving the transparency of market operations, strengthening the regulatory framework to prevent market manipulation and fraud, and ensuring that market participants have access to accurate and timely information.

By focusing on investor protection and education, regulatory bodies can foster a culture of responsible investment, which in turn can lead to more stable market behavior. This is achieved by providing investors with the tools and knowledge they need to make informed decisions, reducing the likelihood of panic selling or buying that can lead to market volatility.

Moreover, enhancing the stability of the capital market also involves promoting a balanced and diverse investment landscape. This means encouraging a wide range of investment options that can withstand various economic conditions and shocks, thus providing a buffer against market instability.

In conclusion, by prioritizing investor-centric policies and measures, the capital market can become more robust and resilient, better serving the needs of investors and the broader economy.Enhancing the inherent stability of the capital market and making every effort to maintain its smooth operation is an intrinsic requirement of practicing the "investor-oriented" philosophy.

To strengthen the inherent stability of the capital market, it is necessary to enhance the expectation management of market participants and increase the consistency of macro policy orientations. Yang Chengzhang, Chief Economist at the Research Institute of Shenwan Hongyuan Securities, suggests that in terms of macro regulation, it is important to increase the coordination between economic policies and non-economic policies to prevent policy adjustments in individual industries from causing severe fluctuations in the capital market and to correct policies that may lead to unstable market expectations in a timely manner. At the same time, it is essential to pay more attention to public opinion guidance, both to increase positive interpretation of economic development achievements and to face the phased issues that arise during the transformation and development of the economy, guiding market participants to form reasonable expectations.

Enhancing the inherent stability of the capital market also requires improving the ability to respond to risks. "To do a good job in cross-market, cross-industry, and cross-border risk monitoring and response, strengthen transaction supervision, and improve the expectation management mechanism..." Liu Chen, a researcher at the Bank of China Research Institute, stated that this year, regulatory authorities have deployed a series of mechanisms and policy measures from maintaining smooth market operation, preventing and resolving risks in key areas, improving expectation management mechanisms, and coordinating openness and security, to enhance the inherent stability of the capital market and focus on stabilizing confidence and expectations.

As the "bottlenecks" for medium and long-term capital entering the market are further cleared, the inherent stability of the capital market is expected to continue to strengthen. Harvest Fund believes that the recent joint issuance of the "Guiding Opinions on Promoting Medium and Long-term Capital into the Market" by the Central Financial Office and the China Securities Regulatory Commission (CSRC) provides a clear "action program" for medium and long-term capital to enter the market and improve the coordinated functions of investment and financing in the capital market. This is of great importance for further guiding and playing the positive effects of medium and long-term capital entering the market, strengthening the long-term nature of investment behavior, enhancing the market's inherent stability, and consolidating the foundation for the smooth operation and healthy development of the capital market.

Improving the Regulatory Law Enforcement System

The implementation of the "investor-oriented" philosophy cannot be separated from a stricter regulatory law enforcement system for the capital market, which requires strong punishment for illegal and irregular behaviors that disrupt normal trading order, fraudulent issuance, financial fraud, etc., and comprehensively protects the legitimate rights and interests of investors.

Recently, some controlling shareholders and directors and supervisors of listed companies have illegally reduced their holdings, undermining the foundation of market integrity, disrupting normal trading order, and harming the interests of a large number of small and medium investors. In response, regulatory authorities have acted quickly, "accurately" and "painfully" targeting illegal share reduction behaviors, and ordering repurchase to maintain a fair trading order in the market.

Recently, the securities regulatory bureaus of Beijing, Shanghai, Shenzhen, and Jiangsu have taken action against investors who have illegally reduced their holdings in stocks of companies listed on the Beijing Stock Exchange. They have taken administrative regulatory measures to order the repurchase of illegally reduced shares and the payment of price differences to the listed companies, and have recorded these actions in the securities futures market integrity file.

Lyu Chenglong, an associate professor at the Law School of Shenzhen University, stated that since the General Office of the State Council forwarded the CSRC and other departments' "Opinions on Further Doing a Good Job in the Comprehensive Punishment and Prevention of Financial Fraud in the Capital Market," relevant departments have continued to increase the crackdown on financial fraud and the infringement of the interests of listed companies, increased the transfer of criminal cases, and made good use of mechanisms such as collective litigation, representative litigation, and "model judgment + professional mediation" to effectively strengthen accountability and further send a strong regulatory signal.At the same time, by heavily pressing down on the responsibilities of intermediary agencies and enhancing the effectiveness of inspection and law enforcement, it will force these agencies to better assume their "gatekeeper" responsibilities and better protect the legitimate rights and interests of investors.

"From recent regulatory cases, the number of cases where intermediary agencies are sued by investors is increasing. Those intermediary agencies that cannot continuously and effectively fulfill their 'gatekeeper' duties will be subject to stricter regulation. Changes in the market ecosystem will promote intermediary agencies to better shoulder their 'gatekeeper' responsibilities," said Song Yixin, a partner at Shanghai Hanlian Law Firm.