Huatai Securities' Shi Jinfeng: Regulatory policy releases positive and prudent signals; new liquidity support tools help enhance market resilience.

On October 19, CSRC Chairman Wu Qing delivered a keynote speech at the opening ceremony of the 2026 Financial Street Forum Annual Meeting. Huatai Securities analyst Shi Jinfeng stated that the tone of this regulatory policy releases a positive and prudent signal, and that incremental products such as 18 active ETFs and medium- to long-term funding arrangements will help improve the current supply-demand balance of funds and the market structure. Strengthened cross-border risk warnings and monitoring will help prevent imported and new types of risks. Overall, regulation still takes expectation management as its primary policy objective, and a series of policy communications are aimed at stabilizing capital market expectations and confidence. Shi Jinfeng also mentioned that the liquidity support tool to be established to address large-scale redemptions at non-bank institutions is intended to cut off the negative loop in the bond market under extreme scenarios of "sellingNAV declinefurther redemption," enhance market resilience, and provide substantive support for bond market stability and risk prevention and control at non-bank institutions, indirectly benefiting stock market sentiment and reducing cross-market contagion. The tool's design emphasizes "specific scenarios + collateral + prudent conditions," avoiding routine backstopping while seeking to balance stability and market discipline.