Investors' concept of "value investment, long-term investment and rational investment" has been gradually established

On June 23, the press conference on the theme of "China's decade" held by the Propaganda Department of the Central Committee of the Communist Party of China was held. On the whole, topics such as monetary policy, macro leverage, foreign exchange market, risk prevention in the financial sector, Inclusive Finance and so on received extensive attention. In detail, what positive structural changes have been paid attention to in the capital market in the past decade. Li Chao, vice chairman of China Securities Regulatory Commission, pointed out that China's investor structure has been gradually optimized. In 2021, the transaction proportion of individual investors will fall below 70% for the first time, and the concept of value investment, long-term investment and rational investment will be gradually established. The decline in the transaction proportion of individual investors, to some extent, means that retail investors have awakened their awareness of scientific financial management, realized the importance of receiving financial education, and will no longer enter the market blindly. "Institutional investors have professional financial knowledge, information and fund advantages, and the average yield of long-term investment is much higher than that of retail investors. However, retail investors are more likely to suffer losses year after year due to their uneven level of financial literacy. Individual investors need to correctly understand the gap between their own financial management level and that of institutional investors." Suqin, President of quantum song Financial Research Institute and head of curriculum research and development of qiniu school, pointed out. Among them, individual investors have some problems due to their own, including chasing after the rise and killing the fall, too short shareholding cycle, keen on theme concept stock speculation, etc., which will also lead to a significant discount in the return on investment. Financial education can help residents improve their financial literacy and use financial instruments correctly.