He Xun Investment Advisor Gao Luming: After Another Stop to the Decline Next Week, There Will Likely Be a Rebound or Even a Bottom

On March 21, Hexun Investment Advisor Gao Luming stated that a major positive development is coming—the Financial Law is about to be implemented. How will this impact the market next week? When can the market stop falling and rebound? Let’s first look at the news. On that day, the draft of the Financial Law was officially released for public consultation, with several key points.

First, the central bank, together with relevant senior departments, will implement macroprudential regulation and management of the financial market, and may adopt counter-cyclical and cross-cyclical adjustment measures as needed.

Second, a sound financial market risk rapid response mechanism will be established to properly address major risks such as abnormal market fluctuations, panic, and liquidity shortages. This means there will be a quick response system for such risks in the future. Recently, a significant factor in the sharp decline of A-shares was the transmission of external risk events to the A-share market. If this happens again, relevant institutions, especially the central bank, can directly inject funds based on the law to stabilize the market quickly and reduce investor losses.

Currently, the market lacks stable funds to support steady growth, so this news is undoubtedly positive for the market. Additionally, the draft emphasizes that if listed companies, their controlling shareholders, actual controllers, or senior management engage in false statements, insider trading, market manipulation, or other actions that harm investors’ legitimate rights and interests, causing losses, they will be legally liable for compensation.

This point is crucial. In the past, the cost of illegal activities in the market was too low. Now, with the implementation of the Financial Law, wrongdoers will have to compensate investors, and in severe cases, may even face bankruptcy. This will significantly reduce investor losses.

This news is also a major positive for market sentiment. The market has been adjusting continuously and is now in the latter stage of correction. Influenced by this news, it will boost market confidence. Moreover, after stopping the decline again next week, the market is very likely to rebound or even bottom out. Therefore, investors need not be pessimistic or anxious.

(Edited by: Cui Chen HX015)

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