[West Street Observation] A-shares' Year of Birth prioritizes stability

After completing three full zodiac cycles, the Year of the Horse for A-shares will once again usher in a new zodiac year.

Looking back at the first three Horse Years, A-shares evolved from a fledgling market to a wild horse galloping freely. Now, they are gradually growing into a reliable steed seeking stability and long-term progress. In this fourth zodiac year, the policy balance between steady growth and risk prevention remains a strong safeguard for A-shares’ “ballast stone.” Prioritizing stability is the most direct market expectation of over 200 million investors.

The three Horse Years of A-shares vividly reflect the market’s journey from reckless growth to mature regulation. In 1990, the first Horse Year, A-shares started with the “Old Eight Stocks,” marking the initial stage of the market and laying the foundation for the capital market. In 2002, the Horse Year, A-shares began to bid farewell to early disorderly fluctuations. In 2014, the Horse Year, a magnificent bull market once emerged, but lessons from leverage risks are still fresh in memory.

From nothing to something, from chaos to order, A-shares have grown through learning, deeply teaching all market participants that rapid surges are unsustainable and that stability is key to long-term success.

Standing at the new starting point of 2026, the Year of the Horse, the scale of A-shares is unrecognizable from the past. The market has expanded to nearly 5,500 listed companies, with total market capitalization surpassing 100 trillion yuan, and the number of investors exceeding 200 million. The capital market has become a core platform serving the real economy and holding residents’ wealth.

High-quality development is never about speed but about steady progress and high standards. For the increasingly large A-share market, “stability” naturally becomes the top priority.

2026 marks the beginning of the 14th Five-Year Plan. The 2025 Central Economic Work Conference emphasized that to do well in 2026’s economic work, the overall tone should be “seeking progress while maintaining stability.” The priority of stability in the capital market has been set, and macro policies are already aligned.

Currently, China’s economy remains stable and positive, providing a solid fundamental backdrop for A-shares. Chinese assets are undergoing a valuation reappraisal, and continuous foreign investment further enhances market stability. Coupled with foreign stock markets hitting record highs, the resonance of domestic and international good news gives A-shares’ “stability” in this zodiac year both confidence and support.

The supervision and reform of the capital market itself are direct guarantees of “stability.” The China Securities Regulatory Commission, in its 2026 systematic work meeting, explicitly stated the importance of prioritizing stability to consolidate the positive momentum. It will strengthen market monitoring and early warning, implement counter-cyclical adjustments in a timely manner, enhance trading and information disclosure regulation, further safeguard trading fairness, and strictly investigate illegal activities such as market manipulation and excessive speculation, resolutely preventing large market swings.

“Stability” is not conservatism, nor stagnation. While seeking progress within stability, reform efforts must continue to enhance the vitality and development level of the A-share market. Initiatives such as deepening the reform of the ChiNext Board and improving refinancing convenience and flexibility are being steadily implemented. These measures directly address market pain points, safeguard risk bottom lines, and stimulate market vitality, building a robust institutional defense for stable A-share operation.

Through dynamic reforms, the market ecosystem continues to optimize, the quality of listed companies improves, and the overall investment value of A-shares rises. Investment concepts are shifting, and the A-share ecosystem is undergoing fundamental transformation.

Speculative logic such as chasing gains and panic selling, as well as hype-driven trading, are gradually retreating. Value investing and long-term holding are becoming mainstream consensus. The regulatory system, trading rules, and investor protection mechanisms are increasingly完善. All these positive changes provide a solid foundation for the stability of A-shares.

For over 200 million investors, “stability” is the simplest expectation and the most rational choice. Compared to past large fluctuations, investors now desire a stable platform for wealth preservation and appreciation.

A good steed never seeks momentary speed but aims for long-term stability. The A-share market is no different—this is both the hope for the Year of the Horse and an inevitable choice for high-quality development of the capital market.

Beijing Business Daily Commentator Dong Liang