China Political and Law University Professor Liu Jipeng recently discussed A-shares, stating that the continuous losses by most investors will affect confidence and consumption. He emphasized that a good stock market should enable everyone to make money, or at least ensure that the majority of investors gain profits.
According to reports from Securities Times, Liu Jipeng emphasized that a good stock market should allow everyone to make money, at least the majority of people should be able to profit, which should theoretically be feasible. He warned against turning the stock market into a speculative market or allowing a few quantitative institutions to exploit retail investors.
Liu pointed out that when the stock market is not doing well, consumption suffers. Without confidence, it’s challenging to stimulate domestic demand. During market challenges, state-owned funds should take the responsibility of stabilizing the market. However, they should not engage in “buy low, sell high” tactics or compete with the people for profits. He also emphasized the need to increase transparency in the market.
It is notable that Liu Jipeng referred to the A-share mark of “4000 points.” Over the past month, reaching and maintaining the 4000 points mark has become a key struggle in the A-share market.
In mid-August, the Shanghai Composite Index approached 4000 points but later experienced a significant correction. On August 19, the daily trading volume in the A-share market was around 2.53 trillion yuan. Subsequently, the index attempted to recover, but the trading volume gradually shrank, with turnover dropping to 1.89 trillion yuan on August 21.
By the end of August and early September, the Shanghai Composite once again approached 4000 points. During the week of August 31 to September 4, the Shanghai Composite Index was just a step away from 4000 points, but failed to break through, leading to market fluctuations and noticeable internal divergence.
On September 9, the Shanghai Composite Index closed at 3951.51 points, still nearly 50 points below the 4000 mark. Despite multiple attempts to breach this psychological barrier, the market has yet to make a successful breakthrough.
Liu Jipeng believes that since last October, when the Shanghai Composite Index first reached 4000 points before falling back, this third attempt to surpass 4000 points raises the question of breaking away from the cyclical pattern of short bull markets and long bear markets. The key lies not only in crossing the 4000 points mark but also in whether the capital market system can undergo changes.
In 2023, Liu Jipeng openly advocated that 4000 points is a reasonable benchmark for A-shares. In July 2023, in an interview with Sina Finance, he mentioned that he has been suggesting for over a decade that 4000 points is a reasonable level for China’s capital market. In September of the same year, during an interview with Phoenix Net’s “Bay Area Wind and Clouds”, he made similar arguments about the rationality of 4000 points. According to him, the China stock market’s long-term hovering around 3000 points was abnormal, and the corresponding P/E ratio at 4000 points was not considered high at the time.
During the same period, Liu Jipeng further delved into the issue of wealth distribution within the stock market. He highlighted the imbalance in the distribution of interests between major shareholders who can go public during bull and bear markets, while many ordinary investors remain in a perpetual state of loss. One of the core contradictions that A-shares need to address is the unequal distribution of benefits between major shareholders and small to medium-sized shareholders.
He proposed reform measures to address the issue of “hegemony of one stock”: the shareholding percentage of the largest shareholder or actual controller of newly-listed companies should be controlled at around 30% to prevent significant shareholders from cashing out through massive sell-offs post listing. For already listed companies, a bottom line for the price of shares that major shareholders can sell should be set, allowing them to sell only after the stock reaches a certain level.
During an interview with “China News Weekly” in November 2023, Liu Jipeng once again connected the long-term stagnation of A-shares with the dominance of one stock and significant shareholder sell-offs. He believed that while the registration system tilts more towards financing, if major shareholders can quickly reduce their holdings post-listing, the capital market could easily become a channel for “cash-out” listings rather than a platform for collective growth for companies and all shareholders.
After a rapid surge in the Chinese stock market post-September 2024, Liu Jipeng highlighted during the 18th China Investment Annual Conference on November 22, that a genuine bull market requires three conditions: incremental capital infusion, market regulatory reforms to plug loopholes, and fundamental economic improvements.
In November 2025, during the Sohu Finance Annual Forum, he raised the slogan of “Respect Capital, Revive the Stock Market,” asserting that in an economic downturn with pressures on consumption and investment, “lifting up the stock market” can be an essential way to boost confidence and drive consumption.