Since the second quarter of this year, with the continuous changes in the interest rate environment and trade governments of relevant external countries, quite a few new situations have emerged in China’s capital market, RMB exchange rate, and asset price market. Although there exist many internal and external troubles, we must also be aware of that China’s balance of payments as a whole still maintains a basically balanced pattern. This reflects China's institutional advantages: the monetary authority can use the "visible hand" to regulate the market at any time.Recently, leading comrades of the Central Committee stressed at several important meetings that the bottom line of preventing systemic financial risk should be firmly maintained, and the financial market should effectively strengthen expectation management. The core of expectation management is to increase policy transparency and synergy. We must learn from the past few years to effectively strengthen expectation management, strengthen regulatory coordination, effectively control and mitigate risks, stabilize market expectations, and guide the healthy development of economy and society through practical reform and effective market mechanism.
