Editorial: To Revitalize the Stock Market, Deepening Registration System Reform Is Crucial

Recently, regulatory authorities have taken a series of actions to lift China’s sluggish stock market, such as reducing the stamp duty on stock trades, tightening IPO regulations to limit the number of offerings, and lowering margin financing ratios. These bundled measures aim to meet the call from the Chinese Communist Party’s Politburo meeting in July to “revitalize the capital market and boost investor confidence.” At a time when stock market performance has been lacking, these initiatives are an attempt to break the negative feedback loop of investor pessimism and market decline. However, these measures still might fall short of truly bolstering investor confidence as they fall into the category of short-term or specific policies.