Shanghai Stock Exchange front-page article: Strictly guard against market ups and downs, consolidate the stable and positive momentum of the capital market, and regulatory authorities initiate countercyclical adjustments

# Shanghai Securities News

Recently, regulatory authorities have continuously intensified supervision, launched counter-cyclical adjustments, and guided the market to return to rationality and achieve long-term stability and sound development through moderate intervention when the market is overheated. Industry insiders believe that counter-cyclical adjustments help maintain trading fairness, address the disadvantaged position of small and medium-sized investors amid information asymmetry, and further guide capital to shift from theme speculation back to the value of real economy, laying a solid foundation for the capital market to serve technological innovation and industrial upgrading.

Currently, the capital market is building a strong defense against risks, promoting the construction of a market stabilization mechanism with Chinese characteristics, and the market is showing a warming and positive trend. A few days ago, the China Securities Regulatory Commission (CSRC) held the 2026 System Work Conference, deployed a new round of capital market reform tasks, and prioritized "stability".

The conference clarified that it will comprehensively strengthen market monitoring and early warning, promptly conduct counter-cyclical adjustments, intensify trading supervision and information disclosure supervision, severely investigate and punish illegal acts such as excessive speculation and even market manipulation, and resolutely prevent drastic fluctuations in the market. It will continue to broaden the channels and methods for sourcing medium- and long-term funds, and fully create a market ecosystem featuring "long-term capital for long-term investment".

Industry insiders opine that counter-cyclical adjustments can effectively boost market confidence through policy tools during market downturns, and guide the market to return to rationality and achieve long-term stability and sound development through moderate intervention when the market is overheated. Medium- and long-term funds serve as the "ballast stone" against market volatility, and the entry of "long-term capital into the market" is conducive to optimizing the capital structure and guiding the concept of value investment.

Recently, regulatory authorities have continuously tightened supervision and launched counter-cyclical adjustments. Starting from January 9, the CSRC has successively filed investigations into cases including the abnormal fluctuation of Tianpu Co., Ltd.'s stock price, the suspected misleading statements in Sunflower's restructuring plan, and the suspected misleading statements in Ronbay Technology's announcement of major contracts, effectively safeguarding the healthy and stable development of the market.

On January 14, the Shanghai, Shenzhen and Beijing Stock Exchanges issued a notice adjusting the margin ratio for margin trading, raising the minimum margin ratio for investors to purchase securities on margin from 80% to 100%.

From January 12 to January 16, the Shanghai Stock Exchange took self-regulatory supervision measures against 365 cases of abnormal securities trading behaviors such as price manipulation and spoofing, and conducted special inspections on 20 major events of listed companies. During the same period, the Shenzhen Stock Exchange took self-regulatory supervision measures against 387 cases of abnormal securities trading behaviors, inspected 15 major events of listed companies, and reported 5 clues of suspected illegal cases to the CSRC.

In an interview with Shanghai Securities News, Tian Lihui, a professor of finance at Nankai University, stated that the recent "combination of regulatory measures" launched by authorities is a targeted policy implementation based on financial cycle theory. Overheated markets tend to give rise to the "herd effect" and valuation bubbles. Through counter-cyclical adjustments, the market is brought back to the track of value. With the coordinated efforts of leverage control, trading supervision and law enforcement deterrence, speculative bubbles are squeezed, the pricing mechanism is restored, and a systemic risk prevention barrier is established at the institutional level.

"If speculation is allowed to spread unchecked, it will ultimately harm the hard-earned money of hundreds of millions of investors and undermine the core functions of the capital market," Tian Lihui said. He believes that these measures not only maintain trading fairness and address the disadvantaged position of small and medium-sized investors amid information asymmetry, but also guide capital to shift from theme speculation back to the value of real economy, laying a solid foundation for the capital market to serve technological innovation and industrial upgrading.

In an interview with Shanghai Securities News, Zhang Peng, deputy director of the Listed Companies Research Center of the Chinese Academy of Social Sciences, pointed out that the series of measures recently introduced by regulatory authorities are both a "reassurance pill" and a "long-term remedy". On the one hand, they emphasize the stable and positive trend of the capital market; on the other hand, they illustrate that only "stability", especially "long-term stability", is the foundation for the market's long-term sound development. "The timely intervention in illegal acts such as excessive speculation in the market has also strengthened the development of trading supervision and information disclosure from the source, laying an important foundation for the long-term healthy and stable development of the capital market," he said.

In the new round of capital market reform tasks, the CSRC clarified that it will continue to deepen the reform of public funds, continuously broaden the channels and methods for sourcing medium- and long-term funds, launch various products and risk management tools suitable for long-term investment, actively guide long-term, rational and value investment, and fully foster a market ecosystem of "long-term capital for long-term investment".

Tian Lihui believes that the entry of "long-term capital into the market" can guide the market to focus on the fundamentals of enterprises rather than chasing short-term themes. He suggested making efforts in three aspects: first, simplifying the approval process for long-term capital to enter the market and reducing institutional frictions; second, implementing tax deferral for stocks held for more than one year to encourage "long-term capital to truly engage in long-term investment"; third, incorporating ESG into assessment criteria to cultivate a value investment culture. The ultimate goal is to form a positive circular ecosystem where "high-quality assets attract long-term capital, long-term capital stabilizes the market, and a stable market incubates more high-quality assets".

**Source**: Shanghai Securities News

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