A recent State Council executive meeting called for improving capital-market
stabilization mechanisms to bolster stock-market stability and support orderly
capital-market development. Dong Zhongyun, chief economist at AVIC Securities,
said authorities should continue to monitor policy effectiveness and funding
supply-demand, accelerate and deepen the impact of existing stabilization
measures, raise participation by financial institutions and listed companies,
and track actual cash injections and the progress of buybacks and additional
purchases. He urged dynamic monitoring of funding imbalances to avoid
concentrated short-term liquidity stress and its negative feedback. Over the
medium to long term, policymakers should strengthen mechanisms for long-term
capital to enter the market to enhance market stability and resilience.
