Founder Securities Chief Economist Yan Xiang: China's Capital Market Better Supports New Growth Drivers
China’s capital market is increasingly aligned with and effective at supporting new growth drivers such as technological innovation and industrial transformation, according to Founder Securities' chief economist Yan Xiang. Recent reforms have improved the investment and financing framework, enhancing resilience and confidence in domestic markets. These changes are critical for fostering high-quality economic development and self-reliance in key technologies. The capital market has become a central platform for directing resources toward innovative sectors while also boosting household wealth through increased investment income. This helps strengthen domestic demand by allowing households to benefit from corporate growth. Additionally, the improved institutional framework supports long-term capital inflows and enhances stability amid global uncertainties. Since 2024, over 70% of A-share IPOs have occurred on innovation-focused markets like STAR Market and ChiNext. Long-term investors such as social security funds and insurers have significantly increased their holdings in A-shares, contributing to market resilience.
Topics: capital markets economic policy reforms