(Yicai Global) Aug. 21 -- China's securities and futures commission called a few brokerage macro analysts and strategists to a closed meeting yesterday, Yicai Global learned from a source close to the regulator.

The meeting mainly reviewed the current A-share market terrain.

Further news of a similar meeting of the China Securities Regulatory Commission sent the A-share market down at today's opening, though there was a small rebound in the final stretch, with it ending up at 2,694.47 points.

The source disclosed no more content, except to confirm that the China Securities Regulatory Commission also held a tete-a-tete with listed companies.

Markets have fluctuated greatly of late, and the stock market has continued to fall. Investors seriously lack confidence. The meeting attracted the market's attention, and insights into the mentality underlying this oversight move and possible market intervention are keenly anticipated.

The purpose was to gauge the market view and understand the sector's take on the current situation, per the source. The agency also conducted many investigations, mainly to listen to the views of the participants on market trends.

Such meetings are very common, a Shanghai brokerage strategist said. "We often communicate with [regulators]. No other special meaning attaches to this meeting, above all any sense of salvaging the market," the strategist added.

Current policy relaxations have not countered the market's pessimistic expectations, a brokerage macro strategist told Yicai Global. Today's market hopes regulators do intervene, but relying on the national team to 'rescue the market' is out of synch with the logic of a virtuous cycle and steady development of the stock market. Dependence on market forces rather than artificial and distorted means to help the market recover is thus necessary.

What is the biggest risk in the current market? Yicai Global visited a number of macroeconomists and brokerage strategists and researchers, who held the greatest peril to be the linkage of stocks, bonds, exchanges and housing.

Major shareholders siphon off cash and some companies fraudulently list, and this harms secondary market investors; listed companies and major shareholders don't care about shareholder returns; the interests of small and medium investors lack effective protection; and most small and medium-sized investors suffer heavy losses, but do not get sufficient compensation, so the litany goes, and thus investors lack confidence in the market.

Editor: Ben Armour