Foreign media: The 'national team' has shown remarkable results in rescuing the market

On Monday, July 13th, the Shanghai Composite Index closed at 3970.39 points and the Shenzhen Composite Index closed at 12614.16 points, with over a thousand stocks rising in both markets. After two consecutive trading days of limit up per thousand shares on Thursday and Friday last week, the Chinese stock market continues to experience a strong reversal. With the continuous fermentation of relevant policies, many foreign media are optimistic about the future trend of the Chinese stock market. A commentary article on the Chinese website of the Financial Times referred to last week as "a week worth recording in the history of China's capital market", and the author believes that this is a signal that the Chinese stock market is beginning to recover its lost ground after three consecutive weeks of decline. The article title of "Deutsche Welle" is "The National Team Has Achieved Significant Results in Rescuing the Market". Many Chinese investors interviewed referred to July 9th as the "Great Counterattack Day". A veteran stock investor who entered the market in the 1990s told Deutsche Welle, "The recent favorable policies are overwhelming, and the country is doing everything possible to protect investor confidence The sustained stabilization and improvement of the A-share market have also received praise for the government's measures to boost the stock market. The Lianhe Zaobao of Singapore wrote that China's current round of market rescue has risen to the leadership of the State Council, and the Central Bank, the Ministry of Finance, the SASAC, the CSRC and the CIRC have taken simultaneous actions. This huge "national power" has stabilized the market. Reuters Chinese website also pointed out in an article that the joint efforts of the Chinese regulatory authorities have finally achieved results in the stock market rescue measures. The series of policy combination punches from the central bank's reserve requirement ratio cut on June 27 to the present demonstrate the resolute attitude of the regulatory authorities in rescuing the market. Many foreign media have noticed that on July 9th, Premier Li Keqiang presided over a symposium on the economic situation of some provincial (regional) government officials. The statement about the capital market in his speech appeared in the press release of Xinhua News Agency and was quoted by multiple foreign media outlets: Despite various challenges and risks in the process of progress, we will not take it lightly, have the ability and confidence to prevent regional systemic risks, maintain economic operation within a reasonable range, promote open and transparent, long-term stable and healthy development of the capital market and money market, provide a favorable financial environment for the development of the real economy, and promote China's economy to achieve medium to high speed growth and move towards a medium to high end level. The statement of the Chinese Premier is like a shot in the arm, which has restored the confidence of many observers in the Chinese capital market. On July 9th, the Forbes biweekly website published an article titled "There is no need to panic about the collapse of the Chinese stock market". The author believes that the adjustment of the Chinese stock market is healthy and beneficial, and is unlikely to have a significant adverse impact on the real economy. A commentary article on FT Chinese website also clearly stated that the main shock of the "earthquake" in the Chinese stock market is passing, and everyone has already survived the most difficult period. "Post disaster reconstruction" is coming. The good news also comes from the structural changes in the Chinese stock market. The Wall Street Journal of the United States pointed out that after a significant decline in A-shares, the driving force for financing and stock trading is rapidly fading. The Lianhe Zaobao of Singapore wrote that the "negative feedback cycle" of the futures index leading the decline and the spot falling has been broken in view of the reappearance of the trading limit of more than 1000 shares in Shanghai and Shenzhen. At the same time, many foreign institutions are also bullish on A-shares, holding positive expectations for the future of the Chinese stock market. According to the BBC website, earlier on July 9th, Oliver Blanchard, the economic advisor of the International Monetary Fund, stated in Washington that the decline in the Chinese stock market is not worth overly worrying about, and the current adjustment of the Chinese stock market can be said to be "healthy". Goldman Sachs' China strategy analyst Liu Jinjin also stated in an interview with Bloomberg that although the Chinese stock market is experiencing its biggest turbulence in many years, it has not undermined its bull market expectations. With the government's rescue measures driving investor confidence back, there is still room for the A-share market valuation to rise, and it will return to a bull market trajectory.