A series of significant positive signals emerged in the A-share market on July 20, with key market participants implementing concrete actions to support market stability.

A coordinated effort from six major sectors is underway to bolster market confidence. This includes the China Securities Regulatory Commission (CSRC) holding an investor forum to listen to market concerns. Simultaneously, state-owned capital platforms, central state-owned enterprises (SOEs), listed companies, public and private fund managers, and insurance capital have all launched actions such as share buybacks, increased holdings, self-investment, and enhanced equity allocations. Stock ETFs have continued to see substantial net inflows, while foreign institutions and leading securities firms have also expressed optimistic views. This multi-faceted approach aims to collectively strengthen confidence in the capital markets.

Regulatory Engagement with Investors

The regulator is proactively managing market expectations through direct communication.

On the morning of July 20, CSRC Chairman Wu Qing visited a securities branch in Beijing to conduct research and chaired an investor symposium. He engaged in face-to-face discussions with eight investor representatives, including both large and small retail investors, to gather opinions on promoting the stable and healthy development of the capital market.

During the meeting, investors shared their experiences and insights from participating in the stock market. They noted that since the implementation of the new "National Nine Articles," China's capital market has generally shown a trend of stability and improvement. While recent A-share market volatility has been influenced by factors including imported external risks, the fundamental policy, innovation, and security logic of the capital market since "September 26" remains unchanged. Short-term fluctuations do not alter the long-term positive trajectory. Suggestions included strengthening counter-cyclical adjustments in primary and secondary markets, implementing multiple measures to guide long-term capital into the market, standardizing the development of quantitative trading and AI applications, further encouraging listed companies to increase dividend payouts, raising the cost of securities-related illegal activities, and fully promoting the high-quality development of the capital market.

Chairman Wu Qing stated that investors are the foundation of the market and the most important participant group. The CSRC will continue to advance risk prevention, strong regulation, and high-quality development in an integrated manner, fully maintain stable market operations, strive to improve the transparency and authenticity of listed companies for better investor returns, urge industry institutions to operate normatively and enhance investor services, continuously improve long-term investor protection mechanisms, and resolutely uphold an open, fair, and just market order, enabling investors to better share in the fruits of high-quality economic and capital market development.

State Capital Platforms Step In with Major Purchases

State-owned capital operation platforms, as core forces for market stability, have clearly signaled and taken action to support the market.

On the evening of July 19, China Chengtong announced that its subsidiaries, Chengtong Capital and Chengyang Investment, have recently focused on making substantial purchases of Chinese equity assets related to state-owned and central enterprises, with cumulative buying nearing 100 billion yuan.

Subsequently, China Reform Holdings announced that its subsidiary, Guoxin Investment, has utilized over 500 billion yuan from special relending facilities for stock repurchases and increased holdings, along with supporting funds, for market stabilization purposes.

Both institutions explicitly stated they will continue to use their own capital and relending quotas to make substantial purchases of central SOE shares, technology stocks, and ETFs, expressing firm confidence in China's economic and capital market prospects and committing to fully maintain the stable and healthy operation of the capital market.

Listed Companies Announce Buybacks, Increased Holdings, and Positive Earnings

Beyond state capital platforms, industrial listed companies have simultaneously introduced share buyback and increased holding plans, coupled with strong interim earnings reports, solidifying fundamental market support.

Based on their assessment of long-term operational value, numerous listed companies have launched share repurchase plans and shareholder increased holding schemes to stabilize secondary market investor confidence.

Data shows that over the past weekend (from the evening of July 17 to July 19), 39 companies on the Shanghai Stock Exchange disclosed announcements related to increased holdings or buybacks. Among these, 9 announcements involved new plans for increased holdings or buybacks. On the Shenzhen Stock Exchange, 16 announcements were made, with 5 involving new plans.

Over a longer period in July, Shanghai-listed companies have collectively disclosed 212 announcements related to buybacks and increased holdings, including 58 new plans with a maximum planned amount of 81 billion yuan. Shenzhen-listed companies have collectively disclosed 257 such announcements, including 55 new plans with a maximum planned amount of 76 billion yuan.

Concurrently, a group of technology companies have collectively released positive earnings pre-announcements for the first half of the year, indicating continued fundamental improvement.

Companies including Suzhou TFC Optical Communication, Tongfu Microelectronics, Tongling Nonferrous Metals Group Tongguan Copper Foil, China National Building Material International Composite Materials, Fuchuang Precision, Xiamen Xoceco Electronics, and Hundsun Technologies have released earnings pre-announcements, all expecting significant year-on-year growth in net profit for the first half.

Among them, Suzhou TFC Optical Communication expects first-half net profit to reach 7 to 8 billion yuan, representing a year-on-year increase of 77.56% to 102.93%.

Public and Private Fund Managers Initiate Self-Investment Campaigns

Public fund managers have announced plans to deploy their own capital into the equity market.

Bosera Funds announced that, based on confidence in the long-term healthy and stable development of China's capital market, it will invest a total of 50 million yuan of its own capital into its publicly offered equity funds in the near future.

Major private fund managers have also announced self-investments. Lingjun Investment set a new record for the largest self-investment by a private fund manager this year. On the evening of July 19, Lingjun Investment stated that the company and its core personnel will use 200 million yuan of their own funds within two weeks to subscribe to the company's private securities fund products.

On the same day, private fund manager Square Sum Investment announced that, based on confidence in the long-term development of China's capital market, it will invest 1 billion yuan of its own capital to subscribe to its products.

Additionally, Xuanxin Asset Management, Yanhe Private Fund, and Shanghai Shiva Asset Management announced self-investments of 10 million yuan, 30 million yuan, and 20 million yuan respectively on July 17.

Insurance Capital Reaffirms "Long-Term Capital" Role, Boosts Equity Allocations

On July 20, leading insurance capital institutions including Ping An Insurance, China Pacific Insurance, PICC Group, and New China Life Insurance voiced strong support for capital market development.

Ping An Insurance stated that as a large comprehensive financial group and a significant force in capital market development, the company is fully confident in China's economic prospects and firmly optimistic about the long-term value of China's capital market. The company will further leverage its advantages as large-scale, long-term capital, flexibly use various comprehensive financial tools and investment strategies, and continuously increase investment in strategic emerging industries, advanced manufacturing, new infrastructure, and value-oriented sectors, demonstrating the responsibility of patient capital through concrete actions.

In 2026, Ping An Insurance will adhere to its stable and sustainable cash dividend policy and philosophy. It will actively prepare for interim and annual profit distribution work in accordance with its Articles of Association, sharing the fruits of its high-quality development with investors and tangibly enhancing their sense of gain.

China Pacific Insurance stated that this year, the company has continued to leverage the long-term investment advantages of insurance funds and increased its equity allocation ratio. It will continue to invest in stocks and ETFs within sectors like technology growth, consumption, and new energy, supporting the cultivation and development of new quality productive forces and acting as genuine patient capital in the market.

Regarding dividends, in 2026 the company will focus on optimizing the dividend distribution rhythm and actively prepare for interim profit distribution. Authorized by the 2025 annual shareholders' meeting resolution for the board to decide on the 2026 interim profit distribution plan, it aims to enhance the stability, sustainability, and predictability of dividends, further improving investor获得感 (sense of gain).

PICC Group stated that as a value investor adhering to long-termism and the patient capital philosophy, it firmly believes in the development prospects of China's capital market. It will actively seize the dual opportunities of capital market valuation repair and industrial growth through practical actions, resolutely serving as a value discoverer in China's capital market, a "ballast stone" for maintaining market stability, and a main force in serving the real economy, contributing to the high-quality development of China's capital market.

New China Life Insurance stated that the company is confident in China's economic development and firmly optimistic about the prospects of China's capital market. Upholding a long-term, value-oriented, and prudent investment philosophy, it actively serves national strategies and supports the real economy. It will continue to leverage the advantages of insurance funds as strategic, long-term, and patient capital, increase the intensity of equity asset investment, enhance support for technological innovation and new quality productive forces, continuously optimize the structure of equity asset allocation, and firmly support capital market development.

Substantial Net Inflows into Stock ETFs

Last week, massive amounts of capital entered the market through stock ETFs against the market trend.

According to statistics, during the week of July 13 to 17, stock ETFs overall saw a net inflow as high as 2.03592 trillion yuan. Among these, broad-based ETFs had a net inflow of 1.5612 trillion yuan, setting a new high for weekly net inflows since April 2025.

Looking at the fund flow structure from last Friday, broad-based ETFs were the major "fund magnets." The overall net inflow for all ETFs that day was 826.3 billion yuan, with broad-based ETFs accounting for 646.92 billion yuan and sector/thematic ETFs seeing a net inflow of 118.3 billion yuan.

Specifically for core indices, the CSI 300 Index became the preferred "ballast stone" for capital. ETFs tracking this index saw a single-day net inflow of 180.89 billion yuan, with cumulative inflows over the past five trading days exceeding 399 billion yuan. ETFs related to the CSI 1000 Index also saw a net inflow of 256 billion yuan during the same period.

Regarding individual products, Huatai-PineBridge CSI 300 ETF performed particularly prominently, with a single-day net inflow of 93.27 billion yuan on July 17 and a cumulative net inflow of 214 billion yuan over the past week. Meanwhile, CSI 300 ETFs under leading public fund managers collectively received large purchases. ChinaAMC CSI 300 ETF saw a single-day net inflow of 17.51 billion yuan, with its latest size reaching 394.13 billion yuan. E Fund CSI 300 ETF had a net inflow of 29.26 billion yuan, increasing its size to 472.55 billion yuan. The CSI 300 ETFs under Huatai-PineBridge, E Fund, Harvest Fund, and ChinaAMC collectively "absorbed" 166 billion yuan that day, with a total weekly net inflow exceeding 355 billion yuan.

As of the close on July 20, major A-share market indices showed mixed performance. The Shanghai Composite Index rose 0.85%, the Shenzhen Component Index fell 0.71%, the ChiNext Index gained 0.42%, and the STAR Market Composite Index declined 2.28%. The total market turnover reached 2.72 trillion yuan.

It has been reported that Wall Street giant Citigroup has adjusted its emerging market asset allocation, downgrading its rating on South Korean stocks and upgrading its rating on Chinese stocks to "overweight." The rationale cited is turbulent trading in the South Korean market, while the Chinese market may benefit as this year's rally, initially led by a few AI winners, is expected to broaden to more sectors.

A research report from CITIC Securities stated that the recent phase of adjustment in the A-share market is primarily due to a rebalancing of shareholding structures after gains, rather than a reversal in economic fundamentals or industry trends. Looking ahead, with the gradual release of interim earnings reports, optimization of market trading structures, and continued influx of incremental funds, the medium- to long-term trend of A-shares remains resilient. The market is expected to return to a pricing logic centered on fundamentals and industrial growth.