West Securities chief strategy analyst Cao Liulong said capital-market reforms
are continuing to take effect and large-cap blue-chip valuations are not high,
so A-shares need not be viewed pessimistically over the medium to long term. He
said securities–fund–insurance swap facilities provide institutions with a
reliable liquidity channel, and a special relending facility for repurchases and
buybacks supplies cash to listed companies and major shareholders; both measures
have helped break negative spirals and restore institutional willingness to buy
during stress. With related tool rates reduced and converted into long-term
arrangements, market self-stabilization now has institutional support.
