Politburo comments on capital markets signal further reform

Beijing is moving to shore up confidence in its capital markets.

ICYMI: When the Politburo met on April 28, it said it wanted to "stabilize and enhance confidence in the capital market."

• However, it didn’t explain what that meant.

A May 22 column in the Economic Daily offers some clarity.

Writing under the pen name Jin Guanping – which represents the State Council’s position – the front-page article acknowledges:

• “The capital market has experienced some fluctuations recently. Stabilizing and enhancing confidence requires systematic and sustained efforts.”

These efforts include:

• Cracking down on “malicious” short selling and illegal activities like financial fraud and market manipulation
• Supporting IPOs by “high-quality” companies, while strengthening delisting mechanisms
• Expanding channels for institutions like pension funds and insurers to invest, while encouraging listed companies to increase dividends and share buybacks

When the Politburo comments on capital markets, we listen.

• In July 2023, the Politburo said it would “enliven capital markets” and “lift investor confidence.”
• Within weeks, regulators rolled out a wave of administrative measures to boost stock valuations.

Get smart: The measures outlined by the Economic Daily build directly on the capital market reforms authorities have pursued since early 2024.

• Those reforms laid the foundations for A-shares’ resurgence since mid-2025.

Get smarter: The pace of reform has slowed this year.

• We suspect authorities are preparing another wave of reform to help achieve their ambtion of delivering a sustainable slow bull market.