Regulations and reforms go hand-in-hand

China's stock market has experienced some volatility recently, partly due to a certain degree of worry in the market regarding the recent regulatory policies introduced to rectify problems in the platform economy and tutoring industry.

Some Western media outlets have sensationalized these moves, portraying the regulations as the harbingers of State control over independent entities, a sign of a dismal market and signaling an exodus of foreign investors.

This misinterprets the regulatory moves which are a natural response to issues that have emerged in these rapidly changing industries.

To understand the moves, the starting point should be to examine the overall situation and trend of China's economic and social development.

The fundamentals for the continued improvement of the Chinese economy have not changed, while China's commitment to reform and opening-up remains firm and the foundation for the development of China's capital market remains solid.

The implementation of these regulatory policies and the imposing of anti-monopoly penalties show the regulatory system is rapidly improving to keep the development of China's economy on a sound and orderly track.

These regulatory policies are important measures to promote the standardized and healthy development of the industries concerned. They are not intended to restrict or suppress the industries but to benefit the long-term development of the world's second-largest economy as a whole.

At present, the challenges China's economy faces are complex and severe. Responding to these challenges is essential to keep China's development on track. China has been adhering to the basic State policy of reform and opening-up for more than 40 years, and even with the challenges brought by the-COVID-19 pandemic, it continues to do so. In the next stage, more pragmatic measures will be introduced to improve the quality of overseas listings.

The Political Bureau of the Communist Party of China Central Committee held a meeting on July 30 to study and analyze current economic circumstances and make plans for related work in the second half of 2021. It urged efforts be made to improve the regulatory system for the overseas listing of Chinese companies, reflecting China's firm determination to continue making good use of domestic and foreign resources and promote its opening-up.

Overseas listings are an important part of China's opening up of its capital market, and they reflect the requirements for high-quality development.

The outlook of the Chinese economy promises more opportunities than risks.

Since the beginning of this year, China's economy has continued to recover steadily with structural improvement, so misreading China's intentions in pursuing reform and opening-up risks missing the opportunities of its higher quality development.