After a week of adjustment, the Shanghai Composite Index regained its upward momentum, breaking through the 3,000-point psychological barrier during Tuesday's trading session, which has somewhat restored market confidence. Recently, following the index's breach of the 3,000-point mark, a round of consolidation and bottom-testing occurred. On one hand, I advise everyone to maintain confidence and patience; as long as one holds quality stocks or funds, it is advisable to wait patiently for the market to rebound. The 3,000-point level will eventually be regained, a fact repeatedly proven by the experience of the past decade and a half. Although over the past 17 years, the Shanghai Composite Index has broken through the 3,000-point level nearly 60 times, it has also reclaimed that level 60 times, and the time spent below 3,000 points is significantly less than the time spent above it. The downside potential below 3,000 points is also much smaller compared to the upside potential above it. Once the 3,000-point level is breached, some contrarian investment funds may enter the market to position themselves.

On the other hand, I actively call for the national team to increase its market participation, not only to support the market but also to lift it, fundamentally reversing the market's downward trend and establishing an upward trend. Once the market establishes an upward trend and the money-making effect improves, the willingness of external funds to enter the market will gradually strengthen.

The market is not short of money now; it lacks confidence. According to data released by the central bank, residents' deposits increased by 9 trillion in the first five months, and over the past three years, they have increased by 60 trillion. These funds, lying dormant in bank deposit accounts, can only earn a low return of 1%-2%. Once investment opportunities in the market are identified, these funds are expected to move from deposits. In the past, the real estate market had a strong money-making effect, and funds often moved towards the property market. However, the golden investment period for the real estate market has now ended, with a decline in transaction volumes and falling housing prices. Therefore, it is unlikely that residents' savings will shift towards the real estate market at this time, and the capital market is expected to become the next reservoir to absorb excessive liquidity, becoming the market into which residents' deposits will flow. However, to initiate this process, large funds are needed to reverse the market's downward trend, thereby creating a money-making effect and boosting investor confidence.

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Recently, the China Securities Regulatory Commission (CSRC) has conducted a special study on further deepening the reform of the capital market. The chairman of the CSRC, Wu Qing, and other members have successively carried out research in Beijing, Shanghai, Guangzhou, Shenzhen, and other places, fully listening to opinions on further deepening the reform of the capital market. During the research, everyone unanimously believed that promoting the high-quality development of the capital market is of great significance for supporting high-level technological self-reliance and the development of new quality productive forces. All parties are confident in the continued stable and good development of China's economy and the stable and healthy development of the capital market. To adapt to new situations and requirements, it is necessary to closely focus on promoting Chinese-style modernization, adhere to the main line of strong regulation, risk prevention, and promoting high-quality development, adhere to goal orientation and problem orientation, make good use of the key move of reform, adhere to the direction of marketization and legalization, further remove the bottlenecks and blockages that restrict the high-quality development of the capital market, and continue to improve the quality and efficiency of the capital market's service to the real economy.

Further deepening the reform of the capital market should closely focus on serving scientific and technological innovation and the development of new quality productive forces, and accelerate the construction of a full-chain market service system and related institutional mechanisms that are compatible with the direction. Adhere to quality first, strictly control the IPO access, improve the precise identification mechanism for technology-based enterprises, coordinate the balance between primary and secondary markets, promote medium and long-term funds into the market with greater intensity, focus on enhancing the inherent stability of the capital market, adhere to strict regulation according to law, further enhance the adaptability and specificity of securities lending, quantitative, and delisting supervision, severely crack down on serious illegal and regulatory violations such as financial fraud and fraudulent issuance, further improve the investor compensation and relief mechanism, strengthen investor protection during the delisting process, take multiple measures to stimulate the vitality of the mergers and acquisitions market, support listed companies to focus on optimizing and strengthening their main businesses, carry out absorption mergers and industrial integration, vigorously improve the quality of listed companies, further promote the smooth "raising, investing, managing, and exiting" cycle of private equity venture capital funds, guide enterprises to invest early, small, long-term, and hard technology, strictly压实 intermediary institutions' gatekeeper responsibilities, and accelerate the improvement of professional service capabilities.

The comprehensive deepening of reform measures by the CSRC has implemented the requirements of the new "Nine National Articles," which is expected to boost market confidence and promote the capital market to stabilize and rebound. Recently released economic data show that the economy has begun to recover, but the strength of the recovery is not yet significant, and more policies are needed to stimulate domestic demand, create jobs, and increase residents' income, in order to boost consumption and drive further economic recovery.

PMI is a leading indicator of economic growth. The PMI data for June have been released, with China's manufacturing PMI at 49.5% for June, unchanged from the previous month, indicating that the economic prosperity still needs to be improved, which requires more "major moves" to boost the economic performance. Looking at the changes in sub-indices, the production side has increased steadily, new momentum has accelerated growth, the vitality of micro-entities has improved, the pressure of raw material costs has fallen in the short term, and the overall economic operation is stable.

In June, China's manufacturing production activities maintained a steady and increasing momentum, with the production index at 50.6%, still within the expansion range. The economic policies introduced earlier have gradually taken effect, which has played a good role in promoting enterprises to expand production. Some industries have received orders well, which has supported the overall production activities of the manufacturing industry. New momentum has accelerated growth, with the equipment manufacturing PMI at 51% in June, up by 0.3 percentage points from the previous month, with both the production index and new order index rebounding from the previous month, rising to above 53% and 52%, respectively. The high-tech manufacturing PMI was 52.3%, up by 1.6 percentage points from the previous month, with the production index close to 54%, up by more than one percentage point from the previous month, and the new order index at 53%, up by nearly two percentage points from the previous month.

In June, the business activity index remained above the 50% threshold, with both the non-manufacturing business activity index and the composite PMI output index above 50%, in the expansion range, which also indicates that the non-manufacturing business activity index remains in an expansion state. In June, China's non-manufacturing business activity index and the composite PMI output index were both 50.5%, down by 0.6 and 0.5 percentage points from the previous month, respectively.

From the output perspective, China's economy has generally maintained expansion, but the foundation for continuous recovery and improvement still needs to be consolidated. Enterprise production remains in expansion, and the demand in the manufacturing market is still insufficient. In the second half of the year, policies to stabilize economic growth are expected to further intensify, especially in stimulating investment and boosting consumption. More policy support is needed to boost enterprise investment confidence and resident consumption confidence, and the foundation for economic growth is also expected to be more solid. In the second half of the year, China's economic outlook is expected to show an accelerated recovery, which will also bring opportunities for the capital market to rebound. The performance of the capital market in the second half of the year is expected to be better than in the first half, and the money-making effect is also expected to gradually increase.