Boost for investor confidence market's most valuable asset

The securities regulator said it has worked together with the Ministry of Public Security to investigate a number of suspected cases of market manipulation and malicious short selling and will intensify the supervision of trading behaviors. For investors concerned about securities lending, the China Securities Regulatory Commission said it has suspended new securities lending and strengthened supervision of the business.

All measures are to strengthen market entry expectations and crack down on malicious short selling. In response to these moves, China's stock market has reacted positively, with three major indexes of the A-share market skyrocketing on the close of trading on Tuesday.

In the face of the continued shocks in the country's capital market in recent days, what the authorities should do first is calm market sentiment and inject more liquidity to restore market confidence. After solving short-term urgent problems, the key to increase investor confidence is repairing long-term market expectations.