The Politburo meeting of the Communist Party of China Central Committee held on July 30th proposed to enhance the attractiveness and inclusiveness of the domestic capital market. In the eyes of market participants, this has outlined a clear path for the reform and development of the capital market in the second half of the year. At present, we are at a critical point in the final sprint of the 14th Five Year Plan and the layout of the 15th Five Year Plan. In the second half of the year, the "1+N" policy system of the capital market is expected to continue to be improved, including further improving the market stability mechanism, guiding medium and long-term funds to enter the market, and continuously improving the investor protection system. In July, the total number of new A-share accounts opened reached 1.9636 million, a year-on-year increase of over 70% and a month on month increase of over 19%, laying a solid foundation for market stability; Since the beginning of this year, the monthly number of new accounts opened in A-shares has remained above 1.5 million. The above data is the latest example of the increasing attractiveness of the A-share market and the full consolidation of the market's stabilization and improvement trend. On the policy front, from the implementation of the "Guiding Opinions on Promoting Medium - and Long term Fund Entry into the Market" to the release of the "Implementation Plan for Promoting Medium - and Long term Fund Entry into the Market"; From the reform of public funds, to the comprehensive promotion of the personal pension system nationwide, and further strengthening the long-term assessment of state-owned commercial insurance companies; During the 14th Five Year Plan period, the construction of long-term mechanisms has accelerated, policy coordination has significantly increased, and the strategic force gathering effect has become prominent, from the launch of a package of "combination punches" to stabilize the market by multiple departments such as the People's Bank of China, the State Administration of Financial Regulation, and the China Securities Regulatory Commission, to the central Huijin Corporation playing the role of a "quasi leveling fund". The foundation of capital market stability has been consolidated and the trend of stability has continued. In the next stage, the foundation of market stability still needs to be further strengthened. Relevant departments need to accelerate the construction of a long-term mechanism for the inherent stability of the capital market, and make every effort to consolidate the market's trend of stabilization and improvement. Among them, strengthening the reserve of strategic forces and promoting the entry of medium and long-term funds into the market are still the key points. Wu Kaida, Chief Analyst of Strategy at Tianfeng Securities, predicts that the focus of future policies may be on implementing more long-term capital inflows into the market and adjusting assessment mechanisms. Regarding the promotion of medium and long-term capital inflows into the market, Mao Hansong, President of the China Securities Financial Research Institute, suggested that efforts should continue to be made to improve the financial and tax policies, investment policies, and regulatory systems for medium and long-term capital. To improve the mechanism for stabilizing the market, we should also enhance the effectiveness and foresight of market monitoring, supervision, and risk response, and strengthen expectation guidance. Tian Xuan, Dean of the National Institute of Finance at Tsinghua University, suggested that we should promote the deep integration of technology and finance, and use big data, artificial intelligence, and other technologies to improve market efficiency. Strengthen regulatory collaboration, improve cross departmental linkage mechanisms, and build a stable, transparent, and predictable market environment. According to Wind data, as of August 8th, the A-share market has seen 1427 new listed companies since 2021, aiming to cultivate a more inclusive investment and financing ecosystem. From the perspective of listed sectors, 376 companies have listed on the Science and Technology Innovation Board, 520 on the Growth Enterprise Market, and 232 on the Beijing Stock Exchange, accounting for nearly 80% of the total; From an industry perspective, enterprises from fields such as information technology, new materials, and healthcare are the majority... During the 14th Five Year Plan period, the capital market's "active water" continued to gather in the hard technology sector. From merging the main board and small and medium-sized board of the Shenzhen Stock Exchange, to establishing the Beijing Stock Exchange, and then promoting the stock issuance registration system throughout the market; From the introduction of the "Eight Measures for the Science and Technology Innovation Board" to the implementation of the "1+6" policy measures to further deepen the reform of the Science and Technology Innovation Board; From the release of the "Sixteen Measures to Support Technology" to the introduction of the "Six Measures for Mergers and Acquisitions" and other documents... During the 14th Five Year Plan period, policies will tilt towards the "new" and accelerate the construction of a capital market ecosystem that is more conducive to supporting comprehensive innovation. Market participants expect that emerging pillar industries will continue to be the focus of reform in the next step. With the increasingly perfect and optimized multi-level capital market system, the capital market will cultivate a more inclusive investment and financing ecosystem, playing an increasingly important role in supporting technological innovation and promoting high-quality economic development. Financing policies will continue to strengthen support for the development of science and technology innovation and new quality productivity, and enhance financing services for the entire lifecycle of science and technology innovation enterprises. Tian Xuan believes that in enhancing inclusiveness, relevant departments will focus on building a multi-level capital market, improving differentiated listing standards, expanding corporate financing channels, and strengthening information disclosure and regulatory mechanisms. Among them, the launch of a package of measures to deepen the reform of the ChiNext board and other policies is worth looking forward to. The investment policy will focus on strengthening patient capital, guiding various types of capital to invest early, small, long-term, and hard technology, in order to better meet the funding needs of scientific and technological innovation enterprises. Xie Yaxuan, Deputy Director of the R&D Center of China Merchants Securities, believes that cultivating patient capital requires further improvement of venture capital and capital market systems, guiding funds to tilt towards hard technology fields such as basic research and cutting-edge technology; Consider establishing a dynamic assessment mechanism to balance the relationship between mature technology industrialization and original innovation investment, further facilitating the exit channels of equity investment, including mergers and acquisitions, and allowing long-term capital to see reasonable return expectations. The enhancement of inclusiveness in the capital market system does not mean that IPOs will expand on a large scale. It is reported that relevant departments will continue to strictly control the entrance to issuance and listing, and do a good job in countercyclical regulation. Effectively improving the quality and efficiency of investor protection, from the practice of the special representative litigation cases of Kangmei Pharmaceutical and Zeda Yisheng, to the initiation of the two special representative litigation cases of Jintongling and Meishang Ecology; From the implementation of the Zijing Storage advance compensation case to the successful resolution of the first national insurance institution subrogation case involving directors, supervisors, and senior executives; During the 14th Five Year Plan period, the channels for investor rights protection and relief have been continuously expanded, the foundation of the investor protection system has been continuously strengthened, and the concept of "putting investors first" has been better implemented, from the first nationwide insurance institution filing a market manipulation "support lawsuit+loss calculation" case where investors won the lawsuit, to the first nationwide "demonstration mediation+arbitration confirmation" mechanism resolving group disputes in private equity funds where investors were compensated. Experts interviewed by reporters believe that since the "improvement of investor protection system" was included in the "14th Five Year Plan" in 2021, the "large-scale insurance" system has been continuously improved, continuously optimizing the good market ecology where investors are willing to come, stay, and develop well. In the future, the measures of "cracking down on the big, the bad, and the key" will be more prominent. The relevant departments will further strictly punish malicious illegal activities such as market manipulation, insider trading, and illegal disclosure of information in accordance with the law, and make the violators pay a heavy price. We should increase the three-dimensional accountability of administrative, civil, and criminal responsibilities, and also make good use of sufficient funds and qualifications to impose fines, severely punish offenders, and release a zero tolerance signal of using strong drugs to cure diseases and imposing heavy penalties to control chaos. ”Associate Professor Lv Chenglong from the Law School of Shenzhen University suggested. The relevant departments will also "strike early, strike small, and strike pain" to prevent problems before they arise. They will take the rectification of "black mouth" and illegal stock recommendations in the stock market as an important part of regulating the order of information dissemination in the capital market and improving the market ecology. They will create a clean and upright market environment for investors from the source and protect their legitimate rights and interests in accordance with the law. Liu Junhai, a professor at the Law School of Renmin University of China, suggested that the main responsibility of the platform should be compacted, and technical advantages such as big data analysis should be brought into play. More accurate screening and attack should be made on information related to illegal stock recommendation, "black mouth" in the stock market, and illegal capital allocation, so as to comprehensively squeeze the living space for fraud and misleading information. Further efforts should be made to unblock channels for investor rights relief. Professor Tang Xin from Tsinghua University Law School stated that both representative litigation and demonstration judgment mechanisms can improve the efficiency of case trials and reduce the cost of investor rights protection. We look forward to the court system issuing comprehensive and systematic minutes of symposiums or judicial interpretations to provide high-level and systematic provisions for the demonstration judgment mechanism. (New Society)