Nurturing Long-Term, Stable And Healthy Multi-Level Capital Market

When it comes to financial reform, Li Keqiang said that China's development is basically based on reform and opening up.

Reform in the financial sector has always been advancing towards marketization and rule of law.

Our adjustment to the quotation mechanism of the RMB exchange rate is a move to conform to the changes in the international financial market and conform to the market rules.

Next, the Chinese government will expand the pilot reform of financial reform in Shanghai free trade area, accelerate the marketization of RMB interest rates, gradually improve the RMB exchange rate formation mechanism, encourage financial innovation, and promote a higher level of opening up of the financial industry, so that financial development can serve the real economic growth more effectively.

When it comes to capital market, Li Keqiang pointed out that this year, the international financial market continued to shake, and China's capital market, especially the stock market, once experienced abnormal fluctuations.

The relevant departments of the Chinese government have taken measures to stabilize the market in time to prevent possible systemic financial risks. This is in line with international practice and is also based on China's national conditions.

We will continue to push ahead with reform, strengthen institutional building, and actively foster a multi-level, pparent, long-term, stable and healthy capital market.

Speaking at an important speech in the city of London, President Xi Jinping pointed out that we are accelerating the development of new industrialization, informatization, urbanization, agricultural modernization, developing capital markets and improving the level of open economy.

And exports, foreign investment and foreign investment will be more balanced.

On the same day, during talks with British Prime Minister Cameron, Xi Jinping pointed out that he supported the high level, diversified and multi-level pragmatic cooperation between the two countries' capital markets.

Releasing liquidity is the most important way to boost the economy. I believe our country will further release liquidity. It is the only option to reduce liquidity. It will not rule out the possibility of a drop in the market after today's closing.

Recently, the Central Committee of the Communist Party of China issued the "Communist Party of China Disciplinary action Ordinance" eighty-eighth content caused the market attention, we all have a lot of hot debate about "party members can also speculate in stocks".

According to the latest regulations of the sanctions Ordinance, Party members who engage in profit making activities in violation of relevant provisions will be dismissed from the party at the highest level, including the ownership of shares or securities of non-listed company (enterprises), and the buying or selling of stocks or other securities investment.

This has caused many party members and shareholders to start a cold sweat. Some party members are afraid of violating the "red line" and have the intention to sell their households.

In fact, if we read the relevant regulations carefully, we will understand that party members can invest in normal stock, which is commonly known as "speculation".

At present,

It has become an important way of investment for the working class. It is impractical to prohibit party members from engaging in legitimate securities trading.

The latest disposal regulations impose strict restrictions on stock investment, mainly in order to prevent party members and cadres from making use of their functions and powers to make investments, especially by using their influence or other improper means to obtain or forcibly buy or sell stocks or conduct internal pactions. Therefore, as long as legal compliance is required and the source of funds is normal, Party members' stock speculation is unrestricted.

The central bank has cut back in routine open market operations.

The scale of the fund was put into operation for 7 days. The operation only implemented 20 billion yuan, far lower than the 50 billion yuan level in the same period last week.

After expiring the amount of expiry, this week realized a net return of 45 billion yuan.

On the previous day, the central bank carried out 6 months' medium-term loan facility (MLF) of 11 financial institutions to reach 105 billion 500 million yuan, maintaining the 3.35% interest rate in August this year, equivalent to inject funds into the market.

According to statistics, as of the end of 9, the MLF operation balance amounted to 490 billion yuan.

A lot of recent financial and economic data are pointing to the downward pressure on the domestic economy.

At the same time, although the RMB exchange rate began to stabilize against the US dollar, in September, foreign exchange accounted for another month's drop in financial institutions.

As a result, the market for the central bank to cut interest rates, lowering the voice of the rise again.

Analysts pointed out that the reverse repurchase shrinkage and net return, and MLF has been restarted. Although there is a slight difference in direction and quantity, the reasons behind the operation can almost be asserted that our monetary policy's "easy journey" is still halfway, and if necessary, the central bank still has the possibility of lowering interest rates or even cutting interest rates.