The Chinese market regulator CSRC held an urgent market stabilization symposium yesterday, sending three strong signals: • First, stabilizing the market does not mean bailing out junk stocks. The current focus is on addressing trading loopholes such as disorderly quantitative dumping, short selling via securities lending, and margin call liquidations to restore the overall market ecosystem. There will be no bailouts for overvalued, fundamentally weak stocks trading on hypes with no earnings. • Second, financial performance should become a strict threshold for stock selection. The goal is to guide institutions to focus on fundamentals and adhere to long-term investing, while strictly cracking down on speculative trading. • Third, hundreds of billions of yuan in state capital will increase their stakes in public companies. Funds from SASAC will be strictly allocated to undervalued, high-dividend, and strong SOE blue chips. Private, purely speculative small-cap stocks will be excluded from their purchases.