A professor from China University of Political Science and Law stated that an ideal stock market should enable all participants to generate profits. During the 20th China Investment Annual Conference, Professor Liu Jipeng emphasized that major shareholders should not focus solely on profiting at the expense of retail investors. He highlighted that the current market's recovery from 3040 points to 4000 points is supported by institutional reforms.

Professor Liu identified concentrated ownership as a significant obstacle to capital market development. He noted that in both state-owned and private enterprises, majority shareholders and their affiliates hold an average of 50% of shares, whereas effective control could be achieved with just 30%. Without addressing this structural issue, he warned that offloading these shares could require over 20 trillion yuan in market liquidity, posing substantial risks.

To tackle challenges such as equity concentration, sell-off pressure, and blocked exit channels, Liu proposed a reform strategy. This includes capping major shareholders' stakes, introducing venture capital to optimize structures, and facilitating smoother exits. He argued that股份制 reform in private enterprises holds strategic importance comparable to earlier state-owned enterprise reforms.

Liu described this approach as achieving three objectives simultaneously: transforming family businesses into modern public companies, mitigating dominant shareholder sell-offs, and creating clear exit pathways for venture capital. He stressed that dispersing ownership is crucial for China's capital market to evolve beyond the 3000-point range and establish a healthy ecosystem where most participants can prosper.

Regarding market trends, Liu observed that overall price-to-earnings ratios hover around 30 times. He suggested that higher valuations could be tolerated if they drive economic growth. Currently, 1,460 A-share listed companies are state-controlled. With annual IPOs projected at 150, raising approximately 180 billion yuan, he emphasized the need for efficient exit mechanisms to support venture capital.

Liu pointed out that with 140,000 private funds managing 23 trillion yuan in assets, exit channels remain a critical bottleneck. He advocated for "patient capital" through government-guided funds to foster technology leaders and build a sustainable venture capital ecosystem. By implementing pre-IPO policies favoring licensed venture capital firms, allowing earlier exits at discounted prices, the system could alleviate secondary market pressure while enabling entrepreneurs and investors to benefit fairly.

In conclusion, Liu urged adopting a dual-track approach: addressing existing listed firms gradually while enforcing stricter ownership limits for new listings. He cited U.S. examples where top shareholders rarely exceed 20% stakes, advocating for dispersed ownership as foundational to China's capital market future.