Wu Feng, chief market strategy analyst at Societe Generale Securities, said in an interview with the Securities Times reporter a few days ago that with the end of the disclosure of the three quarterly A-share reports, compounding a series of domestic and foreign macroeconomic events at the end of October and beginning of November, A shares since November have left the low risk appetite stage suppressed by uncertainty in the previous period and entered a rebound cycle of emotional healing. This round of correction is more due to a return in valuation and risk appetite. The implementation of the incident and clear expectations are the core catalyst for the market to shift from bottoming out to repair. Looking at the medium term, the institutional balance of investment and financing relationships is profoundly reshaping the A-share market ecology and building a solid institutional chassis for the market. The return side of listed companies continues to be optimized. Since September, industrial capital has set off a new wave of repurchases and increased holdings. A number of industry leaders with steady cash flow have launched large-scale repurchase plans, increasing the share of cancellation-type repurchases, directly increasing earnings per share. Its sustainability and effects on earnings per share are significantly stronger than past symbolic repurchases. More importantly, since 2024, the total amount of pre-tax dividends and repurchases of all A-shares has continued to be higher than the sum of total equity financing and the net reduction in industrial capital holdings, reversing the pattern of net financing of A-shares in the past. At the same time, the new holdings reduction regulations strictly link shareholders' holdings reduction to break-up, liquidation, and dividend compliance, and restrict disorderly cash out; the rules cover penalty periods for illegal filing, short-term transactions, agreement transfers, and non-transactional transfer scenarios such as divorce and separation, and the space for detours to reduce holdings has narrowed markedly. The capital market stabilization mechanism continues to improve, and the establishment of a long-term support system with tools such as “equalization funds” in the remittance category, convenient exchange, and increased holdings, repurchase and refinancing are expected to enhance stability within the stock market and promote the steady and healthy development of the capital market. Wu Feng said that the dimensions of equity financing, shareholder returns, shareholders' holdings reduction, and market stabilization mechanisms together form a closed loop of a complete system, which can effectively support the bottom range of market operations.

Wu Feng, chief market strategy analyst at Societe Generale Securities, said in an interview with the Securities Times reporter a few days ago that with the end of the disclosure of the three quarterly A-share reports, compounding a series of domestic and foreign macroeconomic events at the end of October and beginning of November, A shares since November have left the low risk appetite stage suppressed by uncertainty in the previous period and entered a rebound cycle of emotional healing. This round of correction is more due to a return in valuation and risk appetite. The implementation of the incident and clear expectations are the core catalyst for the market to shift from bottoming out to repair. Looking at the medium term, the institutional balance of investment and financing relationships is profoundly reshaping the A-share market ecology and building a solid institutional chassis for the market. The return side of listed companies continues to be optimized. Since September, industrial capital has set off a new wave of repurchases and increased holdings. A number of industry leaders with steady cash flow have launched large-scale repurchase plans, increasing the share of cancellation-type repurchases, directly increasing earnings per share. Its sustainability and effects on earnings per share are significantly stronger than past symbolic repurchases. More importantly, since 2024, the total amount of pre-tax dividends and repurchases of all A-shares has continued to be higher than the sum of total equity financing and the net reduction in industrial capital holdings, reversing the pattern of net financing of A-shares in the past. At the same time, the new holdings reduction regulations strictly link shareholders' holdings reduction to break-up, liquidation, and dividend compliance, and restrict disorderly cash out; the rules cover penalty periods for illegal filing, short-term transactions, agreement transfers, and non-transactional transfer scenarios such as divorce and separation, and the space for detours to reduce holdings has narrowed markedly. The capital market stabilization mechanism continues to improve, and the establishment of a long-term support system with tools such as “equalization funds” in the remittance category, convenient exchange, and increased holdings, repurchase and refinancing are expected to enhance stability within the stock market and promote the steady and healthy development of the capital market. Wu Feng said that the dimensions of equity financing, shareholder returns, shareholders' holdings reduction, and market stabilization mechanisms together form a closed loop of a complete system, which can effectively support the bottom range of market operations.