Economy

Why do foreign institutions frequently make the sound of "long China"?

2024-02-06   

Recently, Wang Qionghui, CEO of Morgan Fund Management (China) Co., Ltd. in China, stated that Morgan Group will work together with domestic partners, fully leverage the group's global advantages, uphold the strategic determination of "investing in China and being long in China", and jointly promote China's "New Beautiful 50" to the world. In fact, several foreign-funded institutions have expressed optimistic views recently. Why do foreign institutions frequently make the sound of "long China"? Firstly, from the perspective of the fundamentals of the Chinese economy, we have responded to multiple shocks with stability, accumulated development momentum with progress, and solidly promoted high-quality development. The main expected goals have been successfully achieved. Behind this hard-earned transcript is the strong resilience, great potential, and abundant vitality of the Chinese economy, which has not changed its long-term positive fundamentals. Secondly, from the perspective of the capital market, the continuously launched measures highlight the coordination of "stability" and "progress", and take more powerful and effective measures to stabilize the market and confidence. For example, after the national video conference on "deploying visits to listed companies and promoting high-quality development of listed companies", various regions and departments quickly responded, actively carried out visits, listened to the operational development status and difficulties encountered by listed companies, and worked together to brainstorm and discuss major plans for the high-quality development of listed companies. On February 4th, Yi Huiman, Secretary and Chairman of the Party Committee of the China Securities Regulatory Commission, presided over a meeting of the Party Committee. The meeting proposed to accelerate the research and visits of listed companies, effectively solve specific difficulties and problems, and increase support for high-quality listed companies. Listed companies are an important micro foundation for high-quality economic development, and high-quality development of listed companies is the only way to enhance the vitality and resilience of the capital market. Many regions are organizing specialized teams to conduct research and promote the high-quality development of listed companies in their jurisdiction, which sends a strong signal of the government's firm support for the capital market and the high-quality development of listed companies. Once again, from the perspective of listed companies themselves, on the one hand, they respond to numerous difficulties by using a combination of cost reduction, efficiency improvement, research and development innovation, and promote their high-quality development; On the other hand, repurchase, increase in holdings, and non decrease in holdings have become keywords in many recent announcements of listed companies. Among them, there are several phenomena worth paying attention to. Firstly, in terms of the purpose of repurchasing shares, the number of companies implementing "cancellation style repurchases" has increased; Secondly, the repurchase plans of many listed companies have been quickly implemented; Thirdly, multiple listed companies have announced action plans to enhance quality, efficiency, and return, injecting confidence into the market and investors through practical actions. In summary, the author believes that the frequent statements made by foreign institutions to "long China" reflect more of the increasing attractiveness of A-shares. (Lai Xin She)

Edit:Hu Sen Ming Responsible editor:Li Xi

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