Xiao Huang: DOORM, why do some experts oppose the establishment of a stabilization fund? What are their main concerns?
DOORM: Experts opposing the establishment of a stabilization fund are concerned that such government intervention could weaken the vibrancy of the capital market. They argue that the free operation of the market is the foundation of investor confidence and market vitality, and excessive government intervention might lead to a loss of the market’s self-regulation ability, thereby reducing investor enthusiasm and the market’s long-term development potential.
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