The promulgation of the new nine articles of the countryCrashclashofthetitansIt heralds a major reform of China's stock market system, which will be the cornerstone of a bull market in the long run, although it will have a limited impact on the A-share market in the short term.

The new Nine articles of the Republic of China was officially released yesterday, which is rich in content and aroused widespread concern. At the institutional level, these reforms will have a far-reaching impact on China's stock market, especially the move to transform the stock market from a financing city to an investment market. While the A-share market may not be significantly affected immediately in the short term, in the long run, reforms will lay the foundation for a bull market.

Looking at the historical data, we can see that the market did not rise immediately after the release of the country's Nine articles in the past two times. After the first release, the market remained in decline for a year and did not begin a bull market until 2007; after the second release, it also took more than half a year for the market to usher in a bull market in 2015. Therefore, the current market trend is mainly affected by geopolitics, monetary policy and market sentiment and other factors.

In order to realize the essential reform of A-share market, the reform of issuance system is imperative. This is the starting point of all reform paths, otherwise any good can only become part of cyclical market volatility.

The reason why it is difficult to promote the reform of the issuance system lies in the game of interests involved. The publicly mentioned issues such as reduction, refinancing and quantification show that the market has recognized the existence of these problems. However, in the process of reform, we need to overcome many obstacles and move forward steadily.

Although the new Nine articles bring hope for the reform of the issuance system, it is bound to be accompanied by labor pains in the process of reform. Investors in the secondary market need to pay attention to factors such as the impact of the financing market, the limitation of quantification, as well as the redemption tide of public funds and the impact of external factors on the market.

Investors should be psychologically prepared to face short-term fluctuations in the market. The market needs to undergo clean-up and restructuring in order to usher in a healthier market. The future is full of hope, but the road is rough, and investors need to be patient and confident.

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