[Xiong Yuan, Chief Economist of Guosheng Securities: Various reforms in the capital market will reverse the past narrative of "emphasis on financing but light on returns"] On October 25, Xiong Yuan, Chief Economist of Guosheng Securities, pointed out in a recent interview with reporters that the governance reform of listed companies focuses on consolidating the main responsibilities, strengthening information disclosure and accountability for violations, and improving dividends and buyback supporting constraints. Promote enterprises to shift from a single financing orientation to equal emphasis on value creation and shareholder returns, continue to reduce governance risk discounts, and repair the foundation of investor trust; at the same time, the shareholding reduction system differentiates constraints and penetrates supervision to curb disorderly arbitrage and detour reductions, promote the convergence of the interests of major shareholders and small and medium-sized investors, reduce irrational selling pressure in a weak environment, and stabilize valuation expectations. The rules are predictable and risk pricing is becoming more rational. Data show that in the first half of the year, the net profits of listed companies increased by 19.5% year-on-year, hitting a new high in the past three years; at the same time, dividend buybacks during the year reached 2.7 times that of IPOs and refinancings, achieving simultaneous growth in profits and returns. In Xiong Yuan’s view, the key to boosting market confidence in the medium and long term lies in the long-term and stable capital structure. The long-term money entry mechanism for A-shares continues to improve, and patient capital such as social security, insurance, and annuities continue to enter the market. Data shows that in recent years, the circulating market value of A-shares held by medium- and long-term funds has increased by more than 80%. This type of funds has a long assessment cycle and is based on verifiable cash flow and profits, which helps optimize the market capital structure, weaken short-term homogeneous transactions, and reduce market volatility. In addition, Xiong Yuan further stated that the coordinated efforts of various reforms in the capital market are reversing the past negative cycle of "emphasis on financing but light on returns", gradually forming a virtuous cycle in which listed companies improve their quality, improve their return mechanisms, and are willing to allocate long-term funds. Institutional dividends are slow variables, but reforms can continue to increase the certainty of long-term returns for A-shares, guide market pricing back to fundamentals, and consolidate mid- and long-term allocation confidence. (Daily Economic News)