Guosheng Securities chief economist Xiong Yuan said coordinated capital-market reforms are reversing the prior "financing over returns" cycle, creating a virtuous loop of listed-company quality improvement, stronger shareholder-return mechanisms and

2026-10-25

Guosheng Securities chief economist Xiong Yuan said coordinated capital-market reforms are reversing the prior "financing over returns" cycle, creating a virtuous loop of listed-company quality improvement, stronger shareholder-return mechanisms and greater willingness by long-term capital to allocate to A-shares. Institutional gains are slow to materialize, but reforms raise the certainty of A-share long-term returns, steer market pricing back to fundamentals and bolster medium- to long-term allocation confidence.