This morning, relevant officials from five ministries and commissions, including the China Securities Regulatory Commission (CSRC), jointly attended a press conference held by the State Council Information Office. The conference focused on “vigorously promoting the entry of medium- and long-term funds into the market to facilitate high-quality development of the capital market.” Boosted by multiple policies aimed at removing obstacles for funds to enter the market, the equity market surged in the morning, with the benchmark index rising by over 1.6% at one point and closing up 1.02% at noon.

Possibly driven by the “stock-bond seesaw” effect and tightening liquidity conditions, the bond market adjusted in the morning. Market data showed that the yield on the benchmark 10-year government bond rose by 0.5 basis points, with short-term government bond yields rising even more. Market traders pointed out that as the Spring Festival holiday approaches, trading activity in the bond market has declined, and liquidity remains the main trading dynamic in the bond market recently.

Wu Qing, Chairman of the CSRC, specifically mentioned at the conference that the current dividend yield of the CSI 300 Index is 3%, significantly higher than the 10-year government bond yield, highlighting the investment value of the equity market. The CSRC is resolutely implementing the new “Nine Principles” regarding “multiple dividends per year and dividends before the Spring Festival,” and it is expected that over 310 companies will pay New Year dividends in December last year and January this year, with a total dividend amount of approximately RMB 340 billion. The number of companies and the amount of dividends are 9 times and 7.6 times, respectively, that of the same period last year.

From the perspective of liquidity, which is the current focus of the bond market, tightness persists. The CNEX Liquidity Sentiment Index showed that the market-wide liquidity sentiment index was at 65 at the opening of the morning session and later rose to 71.