China Merchants Securities chief strategist Li Haoyang said recent
counter-cyclical stabilization measures — focused on cross-market liquidity-risk
isolation, incentives for industrial capital, index-fund participation and
trading-rule adjustments — are being rolled out on a compact timeline with clear
tool roles. He said these measures are gradually breaking the prior negative
feedback loop, restoring investor risk appetite and establishing a multi-layer,
interoperable stability framework that links liquidity provision, capital
deployment and asset absorption. By combining short-term liquidity support with
capital-market institutional reform, the tools have shifted from isolated
actions to closed-loop coordination, strengthening policy effectiveness and
helping A-share valuations return toward a more reasonable range.
