Today, the National Bureau of Statistics released the GDP growth data for the second quarter and the first half of the year. China's GDP in the second quarter grew by 4.7% year-on-year, a slight decline compared to the 5.3% growth in the first quarter. Overall, the first half of the year achieved a year-on-year increase of 5.0%, meeting the target set at the beginning of the year. The Bureau of Statistics stated that a comprehensive and dialectical view is necessary, recognizing both the "form" of short-term fluctuations and the "trend" of long-term development.

The economic growth rate in the second quarter experienced a certain decline, mainly influenced by various factors, including extreme weather and frequent flood disasters as short-term elements. It also reflects some difficulties and challenges in China's economic operation, particularly the prominent issue of insufficient domestic demand. How to stimulate the growth of effective demand in the next step is an important aspect of promoting economic recovery. In the medium to long term, China's economy remains on a trajectory of maintaining high-quality development, and this point remains unchanged.

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In the second quarter, the central bank introduced the "Four Arrows" to support the development of the real estate market, and many places also lifted administrative restrictions such as purchase limits, which is beneficial for stabilizing the housing market and, in turn, stabilizing economic growth. The Central Committee's third plenary session will be held this Wednesday, and the market expects that more policies to stabilize economic growth may be introduced, thereby boosting economic growth. Although China's economy slowed down in the second quarter, stable growth remains an important policy goal. In the first half of the year, per capita disposable income grew by 5.4% year-on-year in nominal terms, with rural residents' income growing faster than that of urban residents. Retail sales of consumer goods grew by 3.7% year-on-year, and service consumption showed a good momentum. Therefore, stimulating consumption is crucial for boosting the economy.

Last year, the contribution of consumption growth to China's GDP growth exceeded 80%. This year, various measures will be taken to stimulate residents' income, including encouraging enterprise development, creating more employment, and increasing residents' wage income. On the other hand, by stabilizing the housing market and boosting the stock market, residents' property income can be increased, generating a wealth effect, which will strongly promote the recovery of consumption. Consumption growth is of great significance to economic growth. In the second half of the year, China's economy is expected to see a rebound in growth after the gradual implementation of multiple policies, and it is relatively certain to achieve the economic growth target of around 5% for the whole year. Therefore, everyone should maintain confidence and patience.

After the short-term fluctuation in economic growth, China's capital market has also experienced certain shocks and adjustments. Especially after the market index broke through the 3000-point integer mark, there has been a certain amount of shock and consolidation, and the divergence between bulls and bears still exists. On Monday, the Shanghai and Shenzhen stock markets continued to fluctuate, continuing the shock rebound of the market last week. Last week, the capital market welcomed two major favorable policies. One is that the short selling of securities lending was suspended, and the existing securities lending will be settled before September 30, which will reduce the short-selling force in the market. The other is that the regulatory authorities stated that they will strengthen the strict supervision of quantitative trading, especially high-frequency trading. These two measures have strongly boosted market confidence. I have also called for the suspension of securities lending business many times before to reduce the short-selling force in the market. On the other hand, strengthening the supervision of quantitative high-frequency trading, these policies have been implemented, which is very beneficial for boosting market confidence.

The market never lacks money, but lacks confidence. During this period, after the market broke through the 3000-point mark, there was a trend of缩量 shock adjustment. Compared with the daily transaction volume of hundreds of billions of yuan during the peak period, the current transaction volume has shrunk by nearly half. This requires more policies to support the bullish force on the policy side. Although the market's downward trend is not entirely caused by securities lending and high-frequency trading, these two measures can send out positive signals, at least to boost market confidence to a certain extent.

Fundamentally, to boost the performance of the capital market, more major measures need to be introduced on the economic front to boost investment growth and consumption growth, thereby promoting the recovery of listed companies' profits and valuations. The third plenary session of the Central Committee will be held this week, and it is expected to introduce a series of policy measures to fundamentally boost investors' expectations for China's economic growth. The three engines of economic growth, investment, consumption, and exports, all need to exert effort this year to further improve the performance of economic growth. This year, in terms of exports, the new three exports, new energy vehicles, lithium batteries, and photovoltaics, still maintain relatively fast growth. In terms of investment, due to the lack of more funding sources for local governments, especially after the land finance is challenged, the growth rate of some infrastructure investments led by local governments has declined. The central government's issuance of ultra-long-term national debt and the construction of major infrastructure projects will greatly boost the economy and increase the growth rate of fixed asset investment.

Over the weekend, I drove from Shenzhen to Zhuhai for the first time through the Shenzhen-Zhongshan Corridor, which is also the world's longest bridge that has just been opened, very spectacular, making me feel the great achievements made in China's infrastructure construction. In the future, by issuing ultra-long-term national debt to increase the construction of major infrastructure, it can not only create more employment opportunities and boost economic growth, but also improve China's infrastructure, achieving a double effect. In addition, efforts should also be made to boost consumption. Fundamentally, boosting consumption still depends on boosting residents' income levels, including wage income and property income. When residents' income increases, consumption confidence and consumption capacity will correspondingly increase, which will, in turn, play a positive supporting role for the capital market.

At present, the overall market is still in a stage of repeated shock and bottoming out, and it is very important to maintain confidence and patience. Investors are advised to adhere to the concept of value investment and to layout some good assets that have been wrongly killed from a medium and long-term perspective, which is a good investment strategy at present, while chasing rises and killing falls and frequent trading are often the root causes of investment losses. Recently, I have communicated with many successful investors in the A-share market who have achieved long-term investment success. I deeply feel that there are still a group of investors in the A-share market who have achieved significant wealth growth by being long-term shareholders of good companies. Many investors have achieved their small goals from hundreds of thousands of funds in one or two decades, achieving wealth growth and investment victory. It can be said that their success is characterized by being long-term shareholders of good companies, or daring to reduce positions or even empty positions when the market appears to be a bubble, and daring to layout at low levels when the market appears to be panicked. This is in line with the Chinese characteristic value investment concept that I have always advocated to everyone.

Value investment is not only suitable for the US stock market but also for the A-share market. It's just that the A-share market has its own characteristics. Investors are mainly retail investors, and the market fluctuates more. Looking back over the past 30 years, good companies can actually go through economic cycles and profit and loss cycles, bringing good returns to investors in the long term, especially when the market appears to be panicked selling. At this time, we must maintain confidence and patience, and decisively layout at low levels by being shareholders of good companies to achieve excess returns.