A-share valuation is still relatively low. Vice Chairman of the China Securities Regulatory Commission, Li Ming, has recently announced six key points.

May 19th to 20th, the 2025 Global Investors Conference hosted by the Shenzhen Stock Exchange was held in Shenzhen. The conference, with the theme of "New Quality Productivity: Investing in China's New Opportunities - the Open and Innovative Shenzhen Market", was attended by nearly 400 representatives from domestic and foreign exchanges and asset management institutions, showcasing the investment value of Chinese assets and the A-share market in various forms. During the conference, Li Ming, Vice Chairman of the China Securities Regulatory Commission, stated that in recent years, the CSRC has resolutely implemented the important deployment of the Party Central Committee and the State Council to promote high-level financial opening, further promoting market, product, and institutional two-way opening, and continuously improving the convenience and stability of cross-border investment and financing. Currently, the total market value of A-shares held by various overseas investors remains stable at around 3 trillion yuan, making them an important participating force in the A-share market. Li Ming's speech at the conference focused on six key points regarding Chinese economic and A-share investor value, listed company vitality, and adherence to capital market openness, as well as future capital market-related policy orientations. One of the key points mentioned was about "long-term and long-lasting investments". Since the beginning of this year, social security funds, insurance funds, pension funds, and other long-term funds have cumulatively net purchased over 200 billion yuan worth of A-shares, reflecting the formation of a benign cycle of accelerated inflow of long-term funds and stable growth in the stock market. Another key point related to A-share listed companies. Since 2024, over 90% of the newly listed companies are high-tech enterprises, indicating the continuous improvement in the technological quality and innovation vitality of A-share listed companies. The conference also emphasized the importance of rewarding investors. In 2024, A-share listed companies distributed a total of 2.4 trillion yuan in dividends and repurchased shares worth 147.6 billion yuan, both reaching historical highs. The dividend yield of the CSI 300 Index is close to 3.6%, showing a trend of more companies distributing dividends multiple times a year. Additionally, the conference addressed the A-share valuation. With the P/E ratio of the Shanghai and Shenzhen 300 Index at 12.6, significantly lower than major foreign market indices, the investment value of A-shares is becoming more prominent. Lastly, the conference discussed the continuous opening of the capital market. The pace of China's capital market opening will remain firm. The CSRC will strengthen the top-level system design of opening up in accordance with the requirements of institutional opening, and focus on advancing the compatibility of rules, regulations, management, and standards to better play the fundamental and long-term role of the system in promoting two-way opening. Investing in China means higher certainty Li Ming discussed the value of investing in China based on the fundamentals of the Chinese economy and the capital market. He stated that in the context of slowing global economic growth, China has been persistently expanding domestic demand and opening up, as well as accelerating the construction of a new development pattern, making it a major contributor to global GDP growth. China's GDP in the first quarter of this year achieved a strong start, demonstrating its resilience. In recent years, a series of policy measures in promoting the construction of a unified national market, expanding domestic demand, ensuring people's livelihood, and preventing and resolving risks in key areas have shown significant effects. Regarding the capital market itself, Li Ming noted that the new policy systems such as the "Nine New National Principles" and the "1+N" gradually taking effect since last year, the strengthening of regulatory enforcement and investor protection, the critical measures such as the entry of medium- and long-term funds into the market, and the reform of public funds are all deepening. The market ecosystem is rapidly improving, and with the continuous deepening of comprehensive capital market financing reforms, the intrinsic stability of China's capital market will be further enhanced. "Especially, the central government attaches great importance to strengthening the reserve of strategic reserves and market stabilization mechanism. The stabilization model, where the China Investment Corporation plays a role similar to a 'sovereign wealth fund' in the front, with strong support from the People's Bank of China and coordinated efforts from other areas, greatly enhances the confidence and capability of the capital market in facing various risks and challenges in a complex environment," Li Ming said. From a global perspective, in a time when stability has become a scarce resource, more stable China's economy and more resilient A-share market will provide irreplaceable investment opportunities for global investors. Since the beginning of this year, social security funds, insurance funds, pension funds, and other long-term funds have cumulatively net purchased over 200 billion yuan worth of A-shares, reflecting the formation of a benign cycle of accelerated inflow of long-term funds and stable growth in the stock market. A-share valuation remains at a relatively low level Currently, the A-share market has more than 5000 listed companies covering various sectors of the national economy, vividly illustrating China's complete industrial categories and accelerated transformation and upgrading. Li Ming pointed out that despite various pressures, the overall performance of A-share listed companies remains resilient, with three-quarters of companies achieving profits and half of them seeing profit growth. There are two notable changes worth mentioning. Firstly, the technological quality and innovation vitality of A-share listed companies have continued to rise. Since 2024, over 90% of the newly listed companies are high-tech enterprises, and a rapid emergence of leading companies in advanced manufacturing, digital economy, and green low-carbon sectors, showcasing Chinese companies' competitive edge globally and attracting widespread attention from global investors. The innovation momentum of listed companies is strong, with a total of 1.6 trillion yuan spent on R&D by physical listed companies in 2024, a year-on-year growth of 3.1%, with over 800 listed companies having an R&D intensity exceeding 10%. "We will soon introduce further reform measures for the Science and Technology Innovation Board and the Growth Enterprise Market, providing more adaptable and inclusive institutional support for the innovative growth of enterprises," Li Ming said. Secondly, listed companies are increasingly focusing on rewarding investors. In 2024, A-share listed companies distributed a total of 2.4 trillion yuan in dividends and repurchased shares worth 147.6 billion yuan, both reaching historical highs, with more companies distributing dividends multiple times a year, and the dividend yield of the CSI 300 Index approaching 3.6%, further strengthening the stability and predictability of returns for investors. Li Ming emphasized that the current valuation level of A-shares remains relatively low, with the P/E ratio of the Shanghai and Shenzhen 300 Index at 12.6, significantly lower than major foreign market indices, highlighting the increased value of A-share allocation. The CSRC recently released the revised "Major Asset Restructuring Management Measures for Listed Companies", increasing support for the asset restructuring of listed companies. In the future, efforts will continue to guide listed companies to actively enhance investment value through methods such as cash dividends, repurchases, mergers and restructurings, continuously building a group of high-quality and dynamic listed companies, and providing more high-quality investment targets for global investors. Additionally, the CSRC will optimize arrangements for qualified overseas investors and support eligible foreign institutions in applying for new businesses and establishing new products.Through methods such as cash dividends, share repurchases, and mergers and acquisitions, we aim to enhance investment value, continuously create a group of high-quality and dynamic listed companies, and provide global investors with more quality investment targets.Four efforts to firmly advance the opening up of China's capital market In recent years, the China Securities Regulatory Commission has actively expanded cross-border connectivity, fully lifted foreign shareholding restrictions for industry institutions, continuously expanded the range of futures and options products that foreign institutions can participate in trading, and a series of measures have achieved positive results. Li Ming said that the pace of China's capital market opening up will remain firm. According to the requirements of systematic opening up, we will strengthen the top-level institutional design for opening up to the outside world, and focus on promoting the pace of opening up by enhancing the compatibility, transparency, systematization, and cooperation of foreign institutions in terms of foreign institutions. Specifically, efforts will be made to promote the compatibility of rules, regulations, management, and standards, allowing institutions to better play a fundamental and long-term role in promoting two-way opening through institutional compatibility. Efforts will also be made to enhance the transparency and predictability of the system, improve communication mechanisms with international investors, further enhance the efficiency of overseas listing record management, optimize arrangements for qualified foreign investors, support eligible foreign institutions to apply for new businesses, establish new products, and continuously improve the cross-border financial services system. Efforts will be made to enhance the systemic openness to the outside world, strengthen the mutual coordination of the opening up of stock, bond, and futures markets, increase the supply of internationalized futures and options products, and enrich asset allocation and risk management tools. Efforts will also be made to strengthen bilateral and multilateral cross-border regulatory cooperation, actively participate in the formulation of international standards and rules, further strengthen cooperation between the mainland and Hong Kong markets, and consolidate Hong Kong's position as an international financial center. Li Ming said that foreign capital is an important participant and builder of China's capital markets. He hopes that global investors can provide valuable opinions, share beneficial experiences, and jointly create a market ecosystem where all types of funds are willing to come, stay, and develop well. This article is from "Cailian News" and edited by GMTEight: Liu Jiayin.