Timely information can stabilize investor sentiment

China's capital market has seen some volatility recently. In this process, some foreign institutions have spread a pessimistic sentiment on it, and then made a U-turn, making no secret of their optimism on it after the market rebounded sharply.

They have taken advantage of geopolitical turmoil to amplify the risk of uncertainty in the Chinese market and stoke fears and confusion through selling Chinese stocks in large quantity within a short time.

A similar thing happened to Japan in the 1990s, when some institutions in the United States used propaganda to weaken the world's confidence in Japan, resulting in capital outflows.

At present, both Europe and the United States are facing challenges of high inflation and asset bubbles, and the impact of the conflict between Russia and Ukraine has brought more uncertainty to them, increasing the pressures and risks for the global financial markets.

In contrast, China's economy continues to restore positive momentum as the main macroeconomic indicators remain within a reasonable range. And China has sufficient means to stabilize its economic growth, and huge potential to tap. Most major listed companies in China still see their main business growing steadily, and they maintain their international competitiveness.

China has also set up a firewall to prevent and defuse related financial risks by strengthening financial regulation. That leaves ample room for the country to cope with any new challenges that may arise.

The rumor fabricators and spreaders were doing nothing but short-selling the Chinese stock market through underselling and downgrading the ratings of Chinese entities.

That means the financial market supervisors and regulators need to seize the initiative by setting the agenda and mastering the dominance of information, especially when some emergencies happen, they should act swiftly to stabilize the market and investors' mood in a bid to prevent some rumors from shaking market confidence.

In the information age, the ability to use agenda-setting to shape public opinion has become indispensable for the regulators to stabilize the financial sector.

Domestic financial institutions should raise their media literacy and enhance their influence on the market, so that they can play their due role in stabilizing the market sentiment, expectations and confidence.

In the long run, the financial institutions must bear the bigger picture in mind, and firmly support the development of the real economy, encouraging long-term institutional investors to increase their stakes.