West Securities chief strategy analyst Cao Liulong said capital-market reforms are continuing to take effect and large-cap blue-chip valuations are not high, so A-shares need not be viewed pessimistically over the medium to long term. He said securities–fund–insurance swap facilities provide institutions with a reliable liquidity channel, and a special relending facility for repurchases and buybacks supplies cash to listed companies and major shareholders; both measures have helped break negativ

West Securities chief strategy analyst Cao Liulong said capital-market reforms are continuing to take effect and large-cap blue-chip valuations are not high, so A-shares need not be viewed pessimistically over the medium to long term. He said securities–fund–insurance swap facilities provide institutions with a reliable liquidity channel, and a special relending facility for repurchases and buybacks supplies cash to listed companies and major shareholders; both measures have helped break negative spirals and restore institutional willingness to buy during stress. With related tool rates reduced and converted into long-term arrangements, market self-stabilization now has institutional support.